WORLDWIDE GROWTH THROUGH TAILOR-MADE...

31/12/2013

WORLDWIDE GROWTH THROUGH TAILOR-MADE SOLUTIONS DELIVERED WITH SPEED

GROUP INTERFACE

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Pulp, paper and board trading Pulp and paper production

79 markets approximately 2,000 employees

1 million tonnes of production 3 trading units Sales 2013 à EUR 1.3 billion

3 industrial sites 2.8 million tonnes sales volume

EBIT 2013 à EUR 69 million Waste paper trading

GROUP INTERFACE

TRADING & MERCHANT INDUSTRY

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OWNERSHIP STRUCTURE

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2013 Acquisition of the Laakirchen paper mill as well as 51% of Bunzl & Biach GmbH from SCA; takeover of the sales of SCA Forest Products in Southern, Central and Eastern Europe, as well as overseas

2012 Europapier purchases the paper merchant business of PaperlinX in Hungary, Slovakia, Slovenia, Croatia and Serbia; disposal of the remaining shares in Biocel Paskov a.s. to Lenzing AG

2011 100 % takeover of AS Estonian Cell 2010 Sale of 75 % of the shareholding in Biocel Paskov a.s. to Lenzing AG; acquisition

acquisition of Europapier AG 2006 Start-up of AS Estonian Cell 2004 33 % participation in the AS Estonian Cell greenfield BCTMP pulp mill

investment 2001 Acquisition of Biocel Paskov a.s. 2000 Zellstoff Pöls AG is acquired and Alfred Heinzel leaves his managerial

post at SCA 1991 With the support of banks and the management, Alfred Heinzel purchases

purchases Wilfried Heinzel AG, todays Heinzel Sales, from his uncle

STRATEGIC STEPS

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VISION

MISSION CORE VALUES

Responsibility Excellence

Respect

Worldwide growth with tailor-made solutions

THE HEINZEL TRACK

We aim to be the leading CEE market pulp and magazine paper producer and the worldwide all-in-one partner for pulp, paper and packaging sales.

In CEE, Middle East, North Africa and India we are the key paper merchant.

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RESPONSIBILITY - EXCELLENCE - RESPECT

§  Behave as an entrepreneur by sharing knowledge and information with your colleagues and by showing responsibility for your own and your team’s actions towards internal and external customers and partners;

§  Do an excellent job by developing and learning from one another;

§  as well as respect the experience, opinion, ideas and suggestions of your vis-à-vis in order to provide the best solutions to Heinzel Group.

CORE VALUES

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BUSINESS GOALS

FINANCIAL GOALS ORGANIZATIONAL GOALS

§  +5% growth in volume p.a. by utilizing our facilities, our network and new business opportunities

§  Focus & simplification towards customers

§  Speed to the market by one combined network

§  Decentralized, lean, flat, and multifunctional

§  OCF Ø 5J > 15*/1.5**% Sales

§  ROACE > WACC

§  Gearing ratio 60-80%

STRATEGY – HOW TO GET THERE?

* = Industry / ** = Trading 8

PERSONNEL GOALS

ENVIRONMENTAL GOALS QUALITY GOALS

§  Living the core values §  Excellence by personnel

development & organizational learning

§  Flexibility challenge

§  Continuous improvements based on documentation

§  Investments due to BAT technology

§  Transparent environmental information to the public

§  Continuous measurements and official annual checks

§  Continuous investments in ecology

§  Investments in innovative high-quality technology and logistics

STRATEGY – HOW TO GET THERE?

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STRATEGIC PERSONNEL DEVELOPMENT CONCEPT

E N T R E P R E N E U R S H I P

Local Training Programs at

Heinzel Sales – Europapier – Bunzl & Biach – Laakirchen Papier – Zellstoff Pöls – Estonian Cell

Leadership Development

Program

Heinzel Sales

Zellstoff Pöls

Laakirchen Papier

BUSINESS – FINANCIAL – ORGANIZATIONAL GOALS

PERSONNEL – QUALITY – ENVIRONMENTAL GOALS

RESPONSIBILITY – EXCELLENCE – RESPECT

Estonian Cell Bunzl & Biach

Europapier

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  FOCUS of the LEADERSHIP PROGRAM §  The Program is strongly aligned to the entrepreneurial approach

and the Core Values of Heinzel Group. §  The Program is based on the individual expectations of the shareholder

and the future leadership requirements defined by the Board Members.

  FACTS of the LEADERSHIP PROGRAM §  Goal of the program is the development of a common leadership

understanding among the core management team of Heinzel Group that will secure the group’s success in future.

§  Participants are board members as well as first and second line management of Heinzel Group companies.

  CONTENT of the LEADERSHIP PROGRAM §  Leading people in a difficult environment §  Leading change & conflict §  Leadership & performance development

LEADERSHIP PROGRAM

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INDUSTRY §  Laakirchen Papier AG

Target: > 600.000 tons SC ROTO + HWSO §  Zellstoff Pöls AG

Expansion program “Pöls 500” PM II MG paper machine 100.000 tons

§  AS Estonian Cell Capacity extension to 200.000 tons Renewable energy capex for heat and electricity

TRADING & MERCHANT

§  Heinzel Sales

Continuous expansion of sales network Target: > 3 million tons

§  Europapier AG Number one paper merchant in CEE and CIS

Target: > 1 million tons §  Bunzl & Biach GmbH

Number one in recycled paper Target: > 700.000 tons Extension in Czech Republic, Slovakia, Slovenia, Hungary, Italy and Germany

OUR STRATEGIC DIRECTION

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FOCUS ON OUR STRENGTHS

GROUP PERFORMANCE 2013

§  HEINZEL GROUP

-  Purchase Laakirchen Papier AG including Bunzl & Biach GmbH (majority)

-  Organic & Acquisition growth > 2,8 million tons

§  Zellstoff Pöls AG

-  Start-up of Paper Machine 2 – the largest of its type in Europe

-  Energy saving due to new heat exchangers RB II

§  Laakirchen Papier AG

-  Successful integration into Heinzel Group

-  Production output record

§  AS Estonian Cell

-  Start-up of new bailing line

-  Anerobic water treatment plant erected

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§  Wilfried Heinzel AG

-  New dimension with SCA sales cooperation

-  Acquisition of SCA sales companies in Italy und Poland

§  Europapier AG

-  Considerable volume and profit increase

-  Fast integration of the purchased PaperlinX companies in 5 markets

§  Bunzl & Biach GmbH

-  Successful integration into Heinzel Group

-  Record output


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GROUP SALES VOLUME 2013

tons Direct Agency Traded goodsOwn

production

Pulp 597.886 342.485 940.371 535.734Printing & Writing 381.141 107.814 488.955Publication 393.880 130.443 524.323 413.535Packaging & Board 373.415 197.318 570.733 13.981Other grades 285.893 3.038 288.932

TOTAL 2.032.215 781.099 2.813.314 963.250

940,371

488,955 524,323

570,733

288,932

Pulp

Prin)ng & Wri)ng

Publica)on

Packaging & Board

Other grades

1,850,064

963,250 Traded goods

Own produc)on

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Worldwide Heinzel Group Offices Representative and Liaison offices: USA (New York) Canada (Vancouver) India (Chennai) Egypt (Cairo) China (Beijing, Guang Zhou) Australia (Victoria) Kenya (Nairobi) Korea (Seoul) Sudan (Khartoum) Other countries serviced via central sales staff.

= Heinzel Sales office

= Heinzel Sales liaison office

= Heinzel production sites

= Europapier

= SCA Forest Products

EUROPAPIER + HEINZEL SALES + SCA FOREST PRODUCTS = CEE & CIS + ALL GRADES

STRONG FOOTPRINT

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according to IFRS 2012 2013*

Net sales 1 000 Euro 1 093 125 1 329 133

EBITDA 1 000 Euro 69 265 108 260 EBITDA margin % 6.3 8.1

Depreciation 1 000 Euro 26 247 39 068

EBIT 1 000 Euro 43 018 69 192 Financial result 1 000 Euro -6 447 -7 976

Taxes 1 000 Euro -3 652 -4 242

Net income 1 000 Euro 32 919 56 975

Operating margin % 3.9 5.2 Industry % 8.0 3.9

Trading and Merchant % 1.6 1.7

* Laakirchen subgroup fully consolidated from 04/2013

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GROUP BALANCE SHEET RATIOS

according to IFRS 2012 2013*

ROE % 8.4 13.4

ROACE % 8.3 12.0

Shareholder’s equity MEUR 381.1 440.8

Equity ratio % 48.5 41.6

Net debt MEUR 45.8 149.3

Gearing ratio % 12.0 33.9

Net debt / free cash flow ratio 0.9 -5.8

Working capital / net sales % 18.5 17.0

* Laakirchen subgroup fully consolidated from 04/2013

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-‐20%

0%

20%

40%

60%

80%

100%

120%

140%

-‐100

0

100

200

300

400

500

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

EUR m

Equity Dividends Net Debt Gearing Ra)o (right)

GEARING RATIO

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Laakirchen Papier AG aims to be the most reputable European magazine paper producer with highest relative market share due to high product quality, a strong environmental profile and excellent customer relationships based on speed, flexibility and mutual trust.

LAAKIRCHEN PAPIER AG

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Location

Activities

Main Markets

Main Customers

Capacity

Turnover

Employees

LEADING MAGAZINE PAPER PRODUCER Laakirchen, Austria SC Magazine Paper 92 % Europe, 8 % Overseas Publishers, Printers, Retailers, Catalogues 550 000 tons 308 MEUR 527

FACTS & FIGURES

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PERFORMANCE DATA

according to IFRS 2012 2013

Production tons 533 518 552 340

Tons sold tons 526 947 555 338

Net Sales 1 000 Euro 282 840 280 647

EBITDA 1 000 Euro 37 870 33 653

EBIT 1 000 Euro 14 017 15 397

Operating margin % 5.0 5.5

Employees number 525 527

§  First consolidation in April 2013

§  Production record

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ZELLSTOFF PÖLS AG Zellstoff Pöls AG aims to be the biggest high-quality Northern Softwood Kraft Pulp producer in Southern Europe and in CEE as well as the biggest high-quality kraft paper producer in Central Europe, each with closest proximity to its customers. This guarantees prime quality, just-in-time delivery as well as first-class global, technical and environmental standards, all combined with a superior worldwide network.

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Location

Products

Capacity

Main markets

Main customers

Turnover

Employees

PULP AND PAPER PRODUCTION Pöls, Austria Bleached softwood kraft pulp ORION Bleached kraft paper STARKRAFT 410 000 tons pulp 14 000 tons paper MG/MF from PM1 80 000 tons paper MG/MF from PM2*

(* from Q4/2013 onwards) Austria, Italy, Germany, France, Slovenia, Eastern Europe and Mediterranean countries Paper, sack and packaging industry 210 MEUR 366

FACTS & FIGURES

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PERFORMANCE DATA

§  Construction and Start-up of Kraft Paper Machine 2

– the largest of its type in Europe

§  Successful strategic energy investments



Tons sold tons 415 328 400 016 Net Sales 1 000 Euro 216 294 209 849 EBITDA 1 000 Euro 38 421 21 842

EBIT 1 000 Euro 23 552 7 545



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AS ESTONIAN CELL AS Estonian Cell aims to be the leading producer of environmentally-friendly high-quality mechanical BCTMP pulp for European and Asian markets by using world-class technology and delivery service.

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Location

Products

Capacity

Investment

Start-up

Main markets

Main customers

Employees

PULP PRODUCTION Kunda, Estonia Aspen BCTMP 165 000 tons 153 M Euro April 2006 Western Europe, Sales via the Heinzel Sales network Fine paper, board, tissue producers 85

FACTS & FIGURES

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PERFORMANCE DATA

§  Realization of Capex programme to increase

production capacity and energy efficiency



Tons sold tons 157 906 149 699 Net Sales 1 000 Euro 59 054 57 559 EBITDA 1 000 Euro 7 349 7 581

EBIT 1 000 Euro - 1 481 - 1 127

Operating margin % - 2.5 - 2.0


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Due to the unique combination of industrial know-how and worldwide market expertise, Heinzel Sales offers excellent individual service. In mature as well as emerging markets this bridge between production facilities and the customers makes it the preferred all-in-one partner in sales.

WILFRIED HEINZEL AG

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INTERNATIONAL SALES COMPETENCE Headquarter - Vienna, Austria 21 offices worldwide Global marketing of pulp and paper Expert know-how in financing, logistics, currency management and special trades Global – 79 markets on four continents Packaging and paper industry, printers, publishers, wholesalers, converters 1 698 036 tons 884 MEUR 97

Location

Activities

Main markets

Main customers

Total sales

Sales value

Employees

FACTS & FIGURES

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PERFORMANCE DATA

§  Start of sales cooperation with SCA in Europe


Tons sold tons 1 788 212 1 698 036 Commission sales tons 887 765 853 475

Sales value 1 000 Euro 900 447 883 600

Net Sales 1 000 Euro 445 327 423 537 EBITDA 1 000 Euro 11 299 10 000

EBIT 1 000 Euro 10 619 9 372



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EUROPAPIER INTERNATIONAL AG Europapier International AG strives to be the number one paper merchant for its customers and sets itself apart by providing tailored solutions for all of its clients’ paper and packaging needs. Europapier has its own branches in 13 countries and supplies over 2,000 customers per day from more than 50 warehouses. Focusing on Central & Eastern Europe as well as the CIS region, Europapier is furthermore looking to expand its business to neighbouring emerging markets.

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INTERNATIONAL PAPER MERCHANT Headquarter - Vienna, Austria 13 subsidiaries, 1 partnership and 61 warehouses in CEE & CIS Demand aggregator and stockist with access to logistics for fine distribution 24 countries in CEE & CIS Printing houses, packaging converters and office resellers & retailers 551 206 tons 508 MEUR 851

Location

Activities

Main markets

Main customers

Total sales

Sales value

Employees

FACTS & FIGURES

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DISTRIBUTION NETWORK

§  Overall market of 483 million people

§  Market leader in Austria and CEE

§  61 warehouses in CEE & CIS

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Tons sold tons 497 838 551 206

Sales value 1 000 Euro 452 300 507 655

Net Sales 1 000 Euro 446 256 474 864

EBITDA 1 000 Euro 5 361 6 676

EBIT 1 000 Euro 3 555 4 851



§  Consolidation of its market position through integration of PaperlinX

companies in Hungary, Slovakia, Slovenia, Croatia and Serbia

PERFORMANCE DATA

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Bunzl & Biach including Austrian Recycling - the recycling paper merchant in Central & Eastern Europe - collects, sorts and sells waste paper and thus closes the recycling loop within the paper industry.

BUNZL & BIACH GMBH

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CEE RECYCLING PAPER COLLECTOR + TRADER Headquarter: Vienna, Austria Stocks 3 + (4 Papyrus) in Austria, 1 in Czech Repulic Collection, sorting, pressing, transport and secure destruction Austria, Czech Republic, Slovakia, Hungary, Slovenia, Germany, Italy Laakirchen Papier AG, SCA Ortmann, Mayr-Melnhof, Hamburger, etc. 657 819 tons 83 MEUR 142

Location

Activities

Main markets

Main customers

Total sales

Sales value

Employees

FACTS & FIGURES

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PERFORMANCE DATA


Tons sold tons 592 225 657 819 Net sales 1 000 Euro 80 147 82 923 EBITDA 1 000 Euro 2 808 2 815

EBIT 1 000 Euro 1 783 1 550



* 51% of the shares owned by Laakirchen Papier AG

§  First consolidation in April 2013

§  Record output

*

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WORLDWIDE GROWTH

THROUGH TAILOR-MADE SOLUTIONS

DELIVERED WITH SPEED

www.heinzel.com

WORLDWIDE GROWTH THROUGH TAILOR-MADE...

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