STAR Conference London, 6 October 2016 Company Presentation Agenda - PowerPoint PPT Presentation

STAR Conference London, 6 October 2016 Company Presentation

Agenda 1. Overview 2. Performance 3. La Rochette mill acquisition 4. RDM shares Page  2

Cartonboard products Packaging applications and, to a lesser extent, graphic purposes drive cartonboard production. SBB - Solid Bleached Sulphate Board (GZ/UZ) Based on virgin fiber FBB - Folding Boxboard (GC/UC); WLC - White Lined Chipboard (GD/UD) and Based on recycled fiber Triplex Board (GT/UT). European cartonboard production (2015) SBB In the last few years, until H1 2016, 7% RDM production was focused on one (‘000 tons) business segment : White Lined SBB 498 FBB Chipboard, “ WLC ”. WLC FBB 2,532 36% 57% Following to the acquisition of WLC 3,990 Cascades sas (30 June 2016), RDM is also involved in the “FBB” business. Source: Company’s elaborations on market data Page  3

Different grades for different end-uses High-quality cosmetics Quality Printability and surface quality Premium cigarettes Whiteness/brightness SBS Purity Confectionery Odour and taint properties Pharmaceuticals Global brand cigarettes Beauty & health care Bulk FBB 1 Music sleeves Stiffness Printability Wet/frozen food (B)CTMP with odour and taint FBB 2 Retail sensitive products Bakery Hardware Software Sport/toys Price WLC Environmental image Beverages Dry food Volumes Paper goods Detergents Textile/shoes Source: Company’s elaborations on market data Page  4

European demand and capacity WLC demand in Europe (mn tons) WLC capacity in Europe (mn tons) FBB demand in Europe (mn tons) FBB capacity in Europe (mn tons) Page  5 Source: Company’s estimates

WLC competition – two key players Mayr Melnhof and Reno De Medici as a whole represent over 55% of total production capacity in WLC. The rest of competition is fragmented in terms of size. Differently from MM and RDM, minor players in the WLC market do not have a PanEuropean asset base. FY15 H1 2016 H1 2016 FY15 Current installed No. of Revenues (‘000 tons Revenues (‘000 tons capacity mills ( € mn) sold) ( € mn) sold) (mn tons/y) 521.9 1,046.7 844 1,710 ca. 1,710 7 (including virgin fiber) 438.0 824 417 216.3 ca. 885 5 Source: MM and RDM Annual and Interim Reports Page  6

Leading cartonboard producers globally Cartonboard producers by grade WLC producers APP/Sinar Mas (CHN) Nine Dragons WestRock (USA) Stora Enso (FIN) Zhejiang Yongzheng Nine Dragons (CHN) Mayr-Melnhof Graphic Packaging (USA) Graphic Packaging Shandong Bohui Paper (CHN) Mayr-Melnhof (GER) Sanxing Paper Sun Paper (CHN) Zhejiang Honghao SBS International Paper (USA) Zhejiang Yongzheng (CHN) FBB Reno De Medici Jintian Paper (CHN) CUK Huangchong Metsä Group (FIN) WLC BillerudKorsnäs (SWE) Zhejiang Chunsheng LPB Reno De Medici (ITA) Other WestRock Chenming (CHN) 0 500 1000 1500 2000 2500 0 1000 2000 3000 4000 5000 Capacity 1000 t/a Capacity 1000 t/a Source: PÖYRY Page  7

Leading cartonboard producers in Europe Cartonboard producers by grade WLC producers Stora Enso (FIN) Mayr-Melnhof Mayr-Melnhof (AUT) Reno De Medici Metsä Board (FIN) BillerudKorsnäs (SWE) Weig Karton Reno De Medici (ITA) Holmen (SWE) Smurfit Kappa Smurfit Kappa (IRL) Buchmann Solidus (NL) Kotkamills (FIN) Fiskeby Board International Paper (USA) SBS FBB Eska Graphic Board (NL) Barcelona Cartonboard Weig Karton (GER) KappaStar Varel (GER) CUK WLC Buchmann (GER) Pulp Mill Holding Abelan (ESP) LPB Other Barcelona Cartonboard (ESP) Paprinsa Fiskeby Board (SWE) 0 500 1000 1500 0 500 1000 1500 2000 2500 3000 Capacity 1000 t/a Capacity 1000 t/a Source: PÖYRY Page  8

Three European top-class assets PRODUCTION MILLS ITA, Villa S. Lucia 220k tons LINER WLC ITA, S. Giustina 240k tons WLC GER, Arnsberg 220k tons LINER/GD WLC FRA, Blendecques 110k tons WLC ITA, Ovaro 95k tons OG-GK FRA, La Rochette 165k tons GC-FBB Page  9

Organizational chart 2 Operating Plants: Reno De Medici SpA - S. Giustina - Villa S. Lucia (operating holding) Sheeting & Distribution Marketing Operations RDM Arnsberg GmbH (*) RDM Magenta Srl RDM Marketing srl 100.00% 100% 100% Emmaus Pack Srl RDM. Ovaro SpA 80% 34.39% Cascades Sas RDM Blendecques Sas Pac Services SpA La Rochette 33.33% 100% 100% ZAR Srl Manucor SpA 33.33% 22.75% (*) Company owned 94% by Reno De Medici SpA and 6% by Cascades Grundstück GmbH & Co.KG. (*) Company owned 70% by Reno De Medici SpA and 30% by Cascades Sas. Page  10

Western Europe is our core market H1 2016 Revenues by geography Oversea RDM boasts a 9% Turkey robust position in 6% core European East EU Italy countries. 7% 37% Strong Other WE 8% geographic reach leverages on a Poland well-diversified 7% asset base. Germany France 11% 15% Page  11

1,400+ converting companies in RDM client portfolio Low-risk concentration Market share of top ten converters is around 30% . First 10 RDM clients account for approx. 22.5% of tons sold. First RDM 100 clients account for 68% of tons sold. Page  12

Agenda 1. Overview 2. Performance 3. La Rochette mill acquisition 4. RDM shares Page  13

RDM Group – P&L Consolidated P&L ('000 euro) H1 2016 H1 2015 Change Revenues from sales 216,292 226,037 -4.3% Other revenues and income 2,337 3,116 -25.0% Change in inventories of finished goods 2,012 -2,580 -178.0% Cost of raw materials and services -169,216 -168,480 0.4% Personnel cost -32,396 -32,385 0.0% Other operating costs -1,656 -2,667 -37.9% Gross operating profit 17,373 23,041 -24.6% Depreciation and amortization -10,710 -11,143 -3.9% Write-downs -1318 n.m. Operating profit 6,663 10,580 -37.0% Financial expense -1,666 -2,122 -21.5% Gains (losses) on foreign exchange -73 429 -117.0% Financial income 17 11 54.5% Net financial income (expense) -1,722 -1,682 2.4% Gains (losses) from investments 680 531 28.1% Taxes -715 -2,133 -66.5% Profit (loss) for the period before net result from discontinued operations 4,906 7,296 -32.8% Net result from discontinued operations -188 -391 n.m. Profit (loss) for the period 4,718 6,905 -31.7% Total profit (loss) for the period attributable to: - Group 4,660 6,842 Page  14 - Minority interests 58 63

Revenues from Sales Volumes sold (‘000 tons ) 500.0 Dynamics of RDM Volumes Sold in -2.8% 429.0 417.0 450.0 H1 2016 reflect a scenario of 400.0 weaker demand in Europe vs. H1 350.0 2015, with the exception of 300.0 Germany, where demand 250.0 remained quite stable. 200.0 150.0 Overseas demand partly 100.0 compensated for the European 50.0 market weakness. 0.0 H1 2015 H1 2016 Revenues from sales ( € mn ) In H1 2016 Revenues from Sales 250.0 226.0 -4.3% 216.3 declined more than volumes. Higher oversea sales lowered 200.0 average selling prices. 150.0 100.0 50.0 0.0 H1 2015 H1 2016 Page  15

Selling prices GDII GDIII 680 650 600 630 550 580 500 530 450 480 Jun-15 Jul-15 Jun-16 Jul-16 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Aug-16 Sep-16 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Bottom of price range Top of price range Bottom of price range Top of price range GCII 1150 1100 1050 1000 950 900 850 Bottom of price range Top of price range Source: Company’s elaborations on market data Page  16

Prices of non-energy raw materials Potato starch – Western Europe € per ton 650 550 500 400 Q4 2015 Q1 2016 Q2 2016 Bleached softwood pulp Mixed paper and board € per ton € per ton 115 800 85 700 600 55 Jan 2016 July 2016 Jan 2015 Jan 2015 Jan 2016 Top of price range Source: Company’s elaborations on market data Bottom of price range Page  17

Page  18 12 14 16 18 20 22 24 26 € /MWh Hub gas price – calendar year 2017 (TTF otc) 02.01.2014 Source: Company’s elaborations on market data 2014 Jan. 22.01.2014 11.02.2014 03.03.2014 21.03.2014 10.04.2014 12.05.2014 02.06.2014 20.06.2014 10.07.2014 30.07.2014 19.08.2014 09.09.2014 29.09.2014 17.10.2014 06.11.2014 26.11.2014 02.01.2015 2015 Jan. Energy prices 22.01.2015 11.02.2015 03.03.2015 23.03.2015 14.04.2015 05.05.2015 26.05.2015 15.06.2015 03.07.2015 23.07.2015 12.08.2015 02.09.2015 22.09.2015 12.10.2015 30.10.2015 19.11.2015 09.12.2015 31.12.2015 2016 Jan. 21.01.2016 10.02.2016 01.03.2016 21.03.2016 12.04.2016 03.05.2016 23.05.2016 13.06.2016 01.07.2016 21.07.2016 10.08.2016 31.08.2016 20.09.2016 2016 Sept.

EBITDA EBITDA ( € mn ) 25.0 23.0 -24.6% 20.0 17.4 15.0 10.0 5.0 0.0 H1 2015 H1 2016 The EBITDA change is basically due to three drivers: • weaker market scenario compared to the H1 2015 (putting pressure also on selling prices); • lower production at the Arnsberg mill, due to the investment carried out in April 2016; • Higher cost of non-energy raw materials . Page  19