Crown Van Gelder N.V.

Velsen

Presentation 10 February 2006

Annual results 2005

1. Opening

2. Highlights 2005

3. Key figures

4. Production and sales volume CVG

5. Paper machines and power plant rebuilt

6. P&L, Balance Sheet, Cash Flow

7. Investments

8. IFRS

9. Results and outlook European paper companies

10. Mission 2010

11. Assumptions and outlook CVG for 2006

12. Questions

1. Opening

2. Highlights 2005

3. Key figures

4. Production and sales volume CVG

5. Paper machines and power plant rebuilt

6. P&L, Balance Sheet, Cash Flow

7. Investments

8. IFRS

9. Results and outlook European paper companies

10. Mission 2010

11. Assumptions and outlook CVG for 2006

12. Questions

Agenda 10 February 2006

• Net result EUR 8.1 million, down 3% on 2004

• Sales volume increase of 5% to 200,400 ton

• Selling price down with 2.4% on 2004

• PM 1 / PM 2 and power plant successfully rebuilt

• Dividend proposal of EUR 1 per share certificate (54% pay out)

• Mission statement 2010

• Net result EUR 8.1 million, down 3% on 2004

• Sales volume increase of 5% to 200,400 ton

• Selling price down with 2.4% on 2004

• PM 1 / PM 2 and power plant successfully rebuilt

• Dividend proposal of EUR 1 per share certificate (54% pay out)

• Mission statement 2010

Highlights 2005

EUR x 1,000 IFRS IFRS 2003 2002 20012005 2004

Net turnover 142,158 139,316 139,554 150,633 152,506Operating profit 11,063 12,052 11,385 14,094 12,254Net profit 8,115 8,325 7,850 9,775 8,220Depreciation 9,239 7,904 7,974 9,065 7,493Capital expenditure 21,653 23,080 9,096 8,935 3,076Sales (ton) 200,400 190,400 181,300 185,000 174,700Production (ton) 197,000 184,000 188,300 184,000 179,500Number of employees(on average) 296 303 311 310 318

Equity ratio 78% 82% 88% 89% 84%

Key figures 2001-2005

WF Uncoated order inflow

total – 3 weeks average

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53

2005

2004

PPC

Order Stocks

0

100

200

300

400

500

600

'000

To

nn

es

0

0.5

1

1.5

2

2.5

3

3.5

4

Ord

er Bo

ok len

gth

(weeks)

Order Stocks 2005 Order Stocks 2004Order Book length 2004 Order Book length 2005

WF Uncoated Order Stocks and Deliveries

Uncoated WoodFree - REELS December 2005

Deliveries to*

(Tonnes) 2005 2004 change %

-BeNeLux 157,965 154,849 2%

-France 422,496 406,271 4%

-Germany 342,935 366,852 -7%

-Great Britain 370,402 375,071 -1%

-Italy 150,993 168,063 -10%

-Spain 286,677 265,251 8%

Subtotal Big 6 1,731,468 1,736,357 0%

Subtotal Other W.E 320,906 336,820 -5%

West. Europe, Total 2,052,374 2,073,177 -1%

Other Europe 132,969 125,751 6%

Europe, Total 2,185,343 2,198,928 -1%

North America 32,673 55,557 -41%

Latin America 16,099 24,144 -33%

Far East 28,791 58,925 -51%

Others 224,719 211,478 6%

O verseas, Total 302,282 350,104 -14%

TO TAL 2,487,625 2,549,032 -2%

* Deliveries from CEPIFINE producers

Year - to - Date

Geographical spread of sales volume CVG

12%

15%

23%17%

15%

4%

14%

Germany

Outside Europe

Other Europe

Belgium/Luxembourg

United Kingdom

France

Netherlands

Production and sales volume CVG

2005 2004 2003 2002Production 197,000 184,000 188,300 184,000Sales 200,400 190,400 181,300 185,000

2005 2004 2003 2002Netherlands 12 13 13 13France 15 14 17 15Germany 23 25 25 28United Kingdom 17 17 15 15Belgium/Luxembourg 15 13 12 12Other Europe 4 4 6 7Outside Europe 14 14 12 10

100% 100% 100% 100%

Wk 46 Wk 47 Wk 48 Wk 49 Wk 50

Power plant automation

DLE gas turbine

Paper machine 1

Paper machine 2

Temporary steam unit

New HD gas pipe

Rebuilt

NBSK PIX Prices 2002-2005

350375400425450475500525550575600625650675700

jan-

02

mrt-

02

mei

-02

jul-0

2

sep-

02

nov-

02

jan-

03

mrt-

03

mei

-03

jul-0

3

sep-

03

nov-

03

jan-

04

mrt-

04

mei

-04

jul-0

4

sep-

04

nov-

04

jan-

05

mrt-

05

mei

-05

jul-0

5

sep-

05

nov-

05

jan-

06

NBSK in EUR NBSK in USD

NBSK

2002 20042003 2005

BHKP P IX Prices 2002-2005

350375400425450475500525550575600625650675700

BHKP in EUR BHKP in USD

BHKP

2002 2003 2004 2005

Consolidated profit & loss account(EUR x 1,000) (unaudited)

2005 2004

Net turnover 142,158 139,316

Costs related to turnover (7,272) (6,715)

Total revenue 134,886 132,601

Other income 201 -

Raw materials, consumables and energy (84,051) (77,972)

Change in inventories of finished goods (1,181) (3,920)

Employee benefits costs (16,517) (18,002)

Depreciation and amortisation (9,239) (7,904)

Other expenses (13,036) (12.751)

Total operating expenses (124,024) (120,549)

Operating profit 11,063 12,052

Finance income/costs (164) (147)

Share of profit of associate 378 302

Profit on ordinary activities before taxation 11,277 12,207

Tax expense (3,121) (3,845)

Profit for the year 8,156 8,362

Minority interests (41) (37)

Net profit 8,115 8,325

Result analysis 2005 vs 2004

(EUR mln)

Net turnover 2004 139.3

Paper

- Sales increase +7.1

- Lower prices (3.3)

+3.8

Electricity

- Lower supply volume to the public grid (0.8)

- Lower prices for supply to the public grid (0.1)

(0.9)

Net turnover 2005 142.2

Result analysis 2005 vs 2004

(EUR mln)Bleached Pulp- Higher purchase volume +4.4- Higher prices +1.0

+5.4Gas- Lower purchase volume (0.3)- Higher price level (taxes) +0.1

(0.2)Electricity- Higher purchase volume +0.3- Lower MEP-subsidy +0.4

+0.7Total cost increase 2005 vs 2004 +5.9

IFRS

Pension Accounting

2005 Pension costs before pension plan changes (32)Changes in security offset as from 1 January 2005 and 1 January 2006Increase in accrual rate as from 1 January 2006 (2,168)Extra pension repair for employeesCurtailment of early retirement pension plan 5,592

3,4242005 Pension benefit after pension plan changes 3,392

Pension asset in balance sheet as at 31 December 2004 2,727Pension plan contributions 1,0002005 Pension benefit after pension plan changes 3,392

4,392Pension asset after plan changes; before asset ceiling adjustment 7,119

Pension asset after plan changes; before asset ceiling adjustment 7,119Asset ceiling adjustment (1,272)Pension asset in balance sheet as at 31 December 2005 5,847

2005 Pension benefit after pension plan changes 3,392Asset ceiling adjustment (1,272)2005 Pension benefit in P&L (after asset ceiling adjustment) 2,120

Consolidated Balance Sheet(before profit appropriation)

(EUR x 1,000) (unaudited)

ASSETS

Non-current assetsProperty, plant and equipment 96,577 84,317Intangible assets 78 125Investment in associate 1,187 1,075Pension asset 5,847 2,727Other assets 2,929 3,038

106,618 91,282Current assetsInventories 25,895 24,897Trade and other receivables 17,037 20,033Tax receivable 1,539 1,977Cash and cash equivalents 1,120 902

45,591 47,809152,209 139,091

LIABILITIES

Shareholders' equity 118,051 114,292Minority interests 117 147Total equity 118,168 114,439Non-current liabilitiesProvision for deferred tax liabilities 5,556 4,422

5,556 4,422Current liabilitiesInterest-bearing liabilities 13,461 8,229Trade creditors 9,468 7,181Taxation and social security contributions 110 193Other short-term liabilities 5,446 4,627

28,485 20,230152,209 139,091

31 December 200431 December 2005

Consolidated Cash Flow Statement (EUR x 1,000) (unaudited)

Cash flow from Operating activities

Operating profit 11,063 12,052

Adjustments for:Depreciation and amortisation 9,239 7,904Provisions 1,134 2,671Pensions (3,120) (996)

7,253 9,579Movements in work ing capital:Trade and other receivables 2,996 (2,608)Inventories (998) 3,034Trade creditors 2,287 (299)Other items (127) (3,618)

4,158 (3,491)22,474 18,140

Finance income/costs (164) (147)Income taxes paid (1,515) (2,824)

(1,679) (2,971)20,795 15,169

Cash flow from Investing activitiesInvestments in property, plant and equipment (21,631) (23,029)Investments in intangible assets (22) (51)Gain on asset sales 200 0Disposals of tangible fixed assets 0 15

(21,453) (23,065)Cash flow from Financing activitiesDividends paid (4,356) (4,356)Interest-bearing liabilities 5,232 8,229

876 3,873(Decrease)/increase in cash and cash equivalents 218 (4,023)Cash and cash equivalents at 1 January 902 4,925Cash and cash equivalents at 31 December 1,120 902

2005 2004

Capital Expenditure 2005

(EUR x 1 million)

IMP II PM 1 / PM 2 6.4

Power Plant 10.4

Coating Preparation Unit 2.3

Disc Filter (save all) 0.6

Other projects 1.9

Total 21.6

Results and outlook European paper companies

• Net profit of EUR -126 mln (2004: EUR 838 mln)

• Non-recurring items EUR -451 mln (2004: EUR 370 mln)

• Operating profit Fine Paper division EUR 62 mln (2004: EUR 55 mln)

• Sales volume (3.6 mln ton) equals last year; stable selling prices

• ROCE Fine Paper increased from 1.9% to 2.2% in 2005

• Operational loss of EUR 190 mln due to labour dispute

• Net profit of EUR -126 mln (2004: EUR 838 mln)

• Non-recurring items EUR -451 mln (2004: EUR 370 mln)

• Operating profit Fine Paper division EUR 62 mln (2004: EUR 55 mln)

• Sales volume (3.6 mln ton) equals last year; stable selling prices

• ROCE Fine Paper increased from 1.9% to 2.2% in 2005

• Operational loss of EUR 190 mln due to labour dispute

StoraEnso results

• Net result decreased from EUR 920 mln to EUR 261 mln in 2005

• Non-recurring items EUR -249 mln (2004: gain of EUR 205 mln)

• Operating profit Fine and Speciality Papers division decreases from EUR 160 mln in 2004 to EUR 88 in 2005

• Sales volume (3 mln ton) equals 2004

• Selling prices -1%

• ROCE from 6.1% in 2004 to 3.4% in 2005

• Net result decreased from EUR 920 mln to EUR 261 mln in 2005

• Non-recurring items EUR -249 mln (2004: gain of EUR 205 mln)

• Operating profit Fine and Speciality Papers division decreases from EUR 160 mln in 2004 to EUR 88 in 2005

• Sales volume (3 mln ton) equals 2004

• Selling prices -1%

• ROCE from 6.1% in 2004 to 3.4% in 2005

UPM-Kymmene results

• Net result of EUR -81 mln (2004: EUR 45 mln)

• Non-recurring items EUR 32 mln (2004: EUR – 33 mln)

• Operating profit Office Paper division EUR -0.7 mln (2004: EUR 1.5 mln)

• Sales volume up by 7.6% to 1,034 mln ton

• Selling prices -3%

• ROCE Office Paper -0.5% (2004: 1.3%)

• Net result of EUR -81 mln (2004: EUR 45 mln)

• Non-recurring items EUR 32 mln (2004: EUR – 33 mln)

• Operating profit Office Paper division EUR -0.7 mln (2004: EUR 1.5 mln)

• Sales volume up by 7.6% to 1,034 mln ton

• Selling prices -3%

• ROCE Office Paper -0.5% (2004: 1.3%)

M-Real results

• Jukka Härmalä (CEO StoraEnso): “In Europe a slight pick-up in advertising and direct marketing is expected to stimulate demand for advertising-driven papers …. The fine paper market is heading into a seasonally good first quarter and the demand outlook is favourable, which should support some price increases.”

• UPM-Kymmene Board: “Demand for printing papers is forecast to be better than last year. Growth in demand will be stronger within emerging markets. Average paper prices are forecast to be higher. Raw materials and energy prices are forecast to rise faster than inflation. UPM is continuing cost cutting and studying a number of options to achieve a lasting improvement in profitability.”

• Jukka Härmalä (CEO StoraEnso): “In Europe a slight pick-up in advertising and direct marketing is expected to stimulate demand for advertising-driven papers …. The fine paper market is heading into a seasonally good first quarter and the demand outlook is favourable, which should support some price increases.”

• UPM-Kymmene Board: “Demand for printing papers is forecast to be better than last year. Growth in demand will be stronger within emerging markets. Average paper prices are forecast to be higher. Raw materials and energy prices are forecast to rise faster than inflation. UPM is continuing cost cutting and studying a number of options to achieve a lasting improvement in profitability.”

Outlook

• Hannu Antilla (CEO M-Real): “Demand for our main products will improve during the first quarter, and we are optimistic about price increases, particularly for uncoated fine paper. The price of coated magazine paper is also likely to rise somewhat. Because of the sharp rise in production costs, there is a considerable need for price increases in coated fine paper and paperboard products.”

• Hannu Antilla (CEO M-Real): “Demand for our main products will improve during the first quarter, and we are optimistic about price increases, particularly for uncoated fine paper. The price of coated magazine paper is also likely to rise somewhat. Because of the sharp rise in production costs, there is a considerable need for price increases in coated fine paper and paperboard products.”

Outlook

ROCE Comparison

CVG and Peer Group

% 2005 2004 2003 2002 2001 Target overthe cycle

CVG 9.1 10.4 10.2 12.8 11.5 11.0(7.6*)

M-Real** -0.5 1.3 4.4 11.0 6.6 12.0StoraEnso** 2.2 1.9 4.4 7.7 9.1 13.0UPM-Kymmene** 3.4 6.1 8.1 13.7 12.9 16.0

* = excluding non-recurring items** = Fine Paper division

Source: Cepifine

Conclusion: slow increase in utilisation rateConclusion: slow increase in utilisation rate

CEPIFINE

Outlook utilisation rate of production capacity in CEPI countries

Balance 2005 2006 2007

WFU 89% 90% 90%WFC 88% 92% 95%FINE PAPER 89% 91% 93%

Product portfolio

Based upon a study of market developments and trend analyses we set 10 targets for CVG to be reached in 2010Based upon a study of market developments and trend analyses we set 10 targets for CVG to be reached in 2010

Mission 2010

1. Higher added value to existing and new customers

2. Production to 230,000 ton, industrial applications from 44% in 2005 to 50%

3. Focus on service: first-time-right, smaller runs, customer satisfaction +7

4. Exploiting benefits of independent company, short lines, decisive organisation

5. Extending customer base

6. ROCE of 11% over cycle, increase pay-out to 50-60% of net earnings

7. Sustainable organisation in energy and raw materials (50% with CoC)

8. Increase competence level of personnel

9. Health and Safety < 10 industrial accidents per 1,000 employees

10. Reducing sickness rate to < 4% per annum

Assumptions

• Sales and production volume up to 210,000 ton

• Implement higher prices in commodities

• Introduction of new products

• Capital expenditure around EUR 8 mln

• Increase of energy costs of around EUR 6 mln

? Price of bleached pulp and USD/EUR exchange rate

? Selling price development

Assumptions

• Sales and production volume up to 210,000 ton

• Implement higher prices in commodities

• Introduction of new products

• Capital expenditure around EUR 8 mln

• Increase of energy costs of around EUR 6 mln

? Price of bleached pulp and USD/EUR exchange rate

? Selling price development

Assumptions and outlook for 2006

Outlook

• Forecast result CVG uncertain, but likely to be lower than in 2005

Outlook

• Forecast result CVG uncertain, but likely to be lower than in 2005

Meeting 10 February 2006

Questions Questions