Ekman & Co

New Era in European Wood Pellets Supply

- 900.000 tons per year from Vyborg in Russia -

Björn Vikinge, Vice President Bioenergy

Bydgoszcz 17 June 2010

To add value to the supply chainfor forest related products

worldwide

Business Concept

Ekman & Co History

1802 Ekman & Co is founded

1992 Ekman acquires Intercontinental Cellulose Sales Inc., New

York. Sales volume exceeds 1,000,000 tons for the first time

1995 Catena sells Ekman to a group of investors consisting of the

Ekman family, MVI, Skandia and the company’s employees

1999 Atle AB buys MVI’s part of the Ekman shares. Sales volume

exceeds 2,000,000 tons for the first time

2002 Ekman celebrates its 200th anniversary

2004 Ekman acquires KC International, New Jersey

2006 Atle AB and Skandia Invest sells its shares to the Ekman

family and the Ekman employees

2007 Formation of the Bioenergy Division

Ownership Structure

31%

69%

Ekman familyEmployees

Board of Directors

Matts EkmanChairman of the Board.Born 1946.Member of the boards of Investment AB Öresund, Profoto AB and Spendrup Investment AB.Previous positions: First ExecVP and CFO of Vattenfall Group 2001-2006, Finance Director of Electrolux Group 1981-2000,

Claes EkmanBorn 1944EntrepreneurTreasurer in Ekman Family Association.

Oscar EkmanBorn 1954.Member of the board of the Ekman Foundations.

Frank GravesBorn 1955. President of North Drive Group Inc., Toronto Canada, Investments and advisory services. Senior Advisor to Renaissance Capital, Moscow, Russia. Senior Advisor to RusFor, Tune, Russia.

Jan SvenssonBorn 1957.President & CEO of the Ekman Group.

Benny JohanssonBorn 1971Employee representative.Pulp Sales

Michael OlssonBorn 1963. Chairman of the board of Technology Nexus AB (publ) and Satpoint AB. Previous positions: Founder, CEO and member of the board of Tradimus AB. CEO and member of the board of Electrolux Scandinavia AB.

Ekman & Co AB

• One of the world’s leading sales and marketing organizations,

focusing in the global forest industry

• Employs 175 people at about 40 locations worldwide

• Additionally represented in more than 100 countries

• Ships about 3,4 million tons of pulp, paper, biomass and

recovered material annually

• Coordinated via three regional hubs

Ekman Group of Companies

Sales Office

Hub Office

Level of interaction

Anything from occasional spot trading to fully integrated partnerships possible:

Level of integration

Sco

pe o

f se

rvic

es p

rovi

ded

Occasional Spot trading

Regular Spot trading

Limited Agency representation

Global Agency representation

Limited Partnership

Fully integrated Partnership

Volume & Turnover

Volume & Turnover

0

500

1,000

1,500

2,000

2,500

3,000

´99 ´00 ´01 ´02 ´03 ´04 ´05 ´06 ´07 ´08 ´09

Tons - 1000

USD million

Vyborgskaya Cellulose

• 900,000 ton annual production• Ekman & Co exclusive sales agent• Production based on roundwood from NW Russia• Turnkey delivery from ANDRITZ Group

- 2 wood processing lines- 4 belt dryers- 36 pellet presses

• Integration with pulp&paper mill provides economies of scale• Focus on industrial market – possibility to target consumer market• Sales with long-term focus• Own port at mill site• Start of production – Q3 2010

Vyborgskaya & Ekman - A Serious Partnership

• Reliability – Punctual loading and deliveries from several quays at once in two different ports

• Quality – Debarking lines with ability to mix in bark during pellet production will allow Vyborgskaya to produce to clients’ specification

• Flexibility – Additional storage allows Vyborg to adapt to clients’ needs and seasonal demand

• Common sense – A good professional relationship with our partners and clients from contractual terms and documentary demands to payment control

Loading from own port

Wood Mix and Sustainability

• Vyborgskaya are already buying 49 year cutting rights for large areas of Forest in NW Russia

• Pellets will be manufactured from a mix of different tree species including Birch, Spruce, Pine and Aspen

• A partial FSC will be available from start up, with higher FSC content during year two

What Makes the Project Unique?

• Raw material from own forest leases• Control of exports through own port• Short shipping distances• Long-term chartered carriers• Very flexible production unit• Owner has a long forest industry track record• Sales controlled by experienced international forests products

trader• Client contracts of several hundred thousand tons per year

Forests in Europe

A turnkey development by Andritz

• All processing and manufacturing equipment will be supplied by Andritz the global market leader in wood processing equipment

• Wood processing will be supervised by Andritz Finland. Two de-barking lines will allow separate flow of sawdust and bark

• Andritz Sweden will oversee the installation of four large belt dryers. These will be installed to operate with the excess steam from the pulp mill. This will mean no discolouration and a lower ash content in the final product

• Andritz Denmark will manage the installation of 16 large hammer mills and 36 pellet presses, with an hourly output of 125 tons.

• Andritz are guaranteeing both quality and quantity

Plant location

Map of All Port Options

Aerial View of Pellet Plant and Port

Foundation completed 2009 for 7500 ton silo

Existing building which will house 16 hammer mills and 36 pellet presses

The “Metro”: a 900 m conveyor that will also travel some distance underground

Europes largest wood yard! over 25 hectares which will hold more than 700 000 m3 at a time

Andritz hammer mills being erected

Silos being erected

Foundation for 4 large belt driers

Foundation for 4 large belt driers

Foundation for conveyor from chipper to drier

Foundation for conveyor from chipper to drier

Rotobraker foundation

Foundation of chip conveyor

Foundation for log vibrator to remove sand from logs

Thank you for your attention

www.ekmangroup.com