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Star Conference 2010

Milan, 18th March 2010

Reno De Medici - Star Conference - Milan, 18 March 2010 2

DISCLAIMER: Certain statements in this presentation, including statements regarding target results and performance, are forward-looking statements based on current analysis and/or assumptions. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, decrease in demand for the Company’s products, increase in raw material and energy costs, changes in the relative value of certain currencies, fluctuations in selling prices, adverse changes in general market and industry conditions and other factors.

Christian Dubé Chairman

Giuseppe Garofano Deputy Chairman

Ignazio Capuano Chief Executive Officer

Stefano Moccagatta Chief Financial Officer

Guido Vigorelli Investor Relations Officer


Contents

Sections Page

� Section I - Overview 4

� Section II - FY09 Results 8

� Section III - Market Environment 13

� Conclusion 21

� Appendices 25

Section I - Overview


Section I – Milestones

1967

1996

1998

20052006

2008

2009

� 1967 Establishment of the Company Cartiera del Reno, based in Milan with production unit in Marzabotto (Bologna). Output capacity of 8,000 tons.

� 1985 Acquisition of Ovaro, capacity 32,000 tons.

� 1986 Acquisition from Cartiera Binda de Medici of the Ciriè (Turin) plant, output 60,000 tons. The Company changed name to Reno de Medici.

� 1992 Equity holding in Grafiche Capretta, a converting firm with a potential output capacity of 15,000 tons.

� 1995 Ovaro merged into Reno de Medici. Equity holding in Grafiche Capretta raised to 70%.

� 1996 Reno de Medici listed on the Milan stock exchange. Global output capacity up to 270,000 tons.

� 1997 Reno de Medici and Saffa merge. The Company take the name Reno De Medici, acquiring the Bianchi Saffapack converting division, Saffa Immobiliare, Italmatch, a number of smaller holdings and a controlling interest in Sarrio’ (Spain).

� 1998 Reno De Medici merged with Sarrio’, the main holding of the former Saffa, becoming Europe's second largest maker of mainly recycled cardboard with an output capacity of over 950,000 tons and a market share in Europe of around 20%.

� 1999 The company Grafiche Capretta merged with Bianchi Saffapack, changing name to Europoligrafico and becoming Italy's leading paper-transformation firm with 4 production units and an output capacity of 60,000 tons.

� 2001 Acquisition of Aticarta with a paper mill in Pompei and a converting mill in Rovereto.

� 2005 Non-core assets disposal and sale of the share capital owned in Europoligrafico and Aticarta.

� 2006 Demerger of some real estate assets, through the creation and simultaneous listing of RDM Realty.

� 2008 Merger by incorporation of the European recycled cartonboard business of the Cascades Group. Creation of a commercial joint-venture (Careo) for the sale of all kind of cartonboard both from virgin and recycled fibres.

� 2009 Acquisition of a minority stake in Manucor, the leading Italian plastic film producer.

Reno De Medici - Star Conference - Milan, 18 March 2010

0

1

2

3

4

5

0 200 400 600 800 1000 1200 1400 1600 1800

Production capacity (Thousand/tons)

Geogra

phical pre

sence

by n° of co

untries

6

Section I – Competitiveness is improving

MARKET PRESENCE BEFORE AND AFTER THE MERGER WITH CASCADES

Source: Company data as at Dec, 31 2009

CAS 07 RDM 07 Other 14 Producers

RDM 09

Other German

producers

MM 09


Section I – European coverage is more balanced

EVOLUTION OF RDM GROUP SALES GEO MIX


Cascades 2007

15%

25%

23%

9%

4%2%

22%

BeneluxFranceGermanySpainItalyUKOthers

RDM 2007

2% 10%

6%

13%

4%

14%

51%


RDM Group 2009

5%

15%

12%

8%

36%

5%

19%


Section II - FY09 Results


Section II – EBITDA Bridge (adjusted)

YoY WATERFALL

Source: unaudited management account as at Dec, 31 2009. Data in Eur/million

(*) FY2008 EBITDA adjusted includes Blendecques and Arnsberg contribution also for Jan and Feb 2008 (pre merger).

EBITDAFY2008

(*)

Rawmaterialprices

Energiesprices

Sellingprices

Cost ofsales

OtherIncome

Volumesold

Efficiency FixedCosts

EBITDAFY2009

-

10

20

30

40

50

60

70


Section II – Profit & Loss

(*) FY2009 financial data have not yet been audited by an Independent Auditor.

(**) Due to the excess of the fair value of the assets, liabilities and contingent liabilities identified at 31 December 2008, over the cost of the business combination with Cascades.

(***) This figure does not include the volumes sold by Blendecques and Arnsberg mills in January and February 2008 (pre merger). If this was to be included, total volumes sold by the Group for FY2008 would amount to 958,000 tons.

Source: unaudited management account as at Dec, 31 2009

(Eur/million) FY2009 (*) FY2008

Revenues from sales 428,2 455,0

EBITDA adj before badwill and non recurrent items 31,0 18,8

% EBITDA margin adj 7,2% 4,1%

Badwill (**) 0,0 21,2

EBITDA 31,0 40,0

% EBITDA margin 7,2% 8,8%

Depreciation, amortisation and write downs (27,1) (25,7)

Financial charges (9,1) (11,7)

Discontinued operations 0,0 (6,8)

EBT (5,1) (4,1)

Taxation (1,7) (2,1)

Result for the period (6,8) (6,2)

Tons sold (tons/thousands) 864 889 (***)


Section II – Balance Sheet


Source: unaudited management account as at Dec, 31 2009

(Eur/million) FY2009 (*) FY2008

Stock 74,3 82,1

Trade receivables 110,5 114,5

Trade payables (102,7) (108,8)

Total working capital 82 88

Other assets - current 4,6 6,3

Other liabilities - current (13,9) (17,4)

Other non-current receivables 0,0 0,2

Non-current assets 271,2 274,9

Non-current liabilities (34,5) (38,0)

Employees' leaving indemnity (24,5) (23,5)

Net capital invested 285 290

Net financial position (131) (128,5)

Net Equity 154,1 161,2

Total sources 285 290


Section II – Net Financial Position


(**) In the FY2008 Financial Statements, according to IAS 1, a portion of the non-current loans has been reclassified as a short-term loan, for an amount respectively of 44,4 and 45,9 millions of Euro.

Source: Unaudited management account as at Dec, 31 2009

(Eur/million) FY 2009 (*) FY 2008

Cash and cash equivalents and short-term financial receivables 2,2 6,0

Short-term financial debt (68,3) (113,6) (**)

Valuation of current portion of derivatives (1,1) (0,1)

Short-term financial position (67,2) (107,7)

Medium-term financial debt (62,7) (19,9) (**)

Valuation of non-current portion of derivatives (0,8) (0,9)

Net financial position (130,7) (128,5)

Section III – Market Environment


Section III - Market environment

� Raw material cost is increasing

� WLC demand is picking up since Q4 2009

� Transfer of price increase on final product will take place during Q2 2010

� This might lead to capacity reduction on the WLC market


Section III - Market environment

The experienced correlation between WLC consumption and GDP seems to be confirmed. Assuming there will be no major “pipeline effects”, 2010 should mark a modest growth.

-6

-5

-4

-3

-2

-1

0

1

2

3

4

2006 2007 2008 2009 2010

Growth rate of GDP - EU (27 countries) Growth rate of WLC shipped - European Market


WLC MARKET DEMAND EVOLUTION


Section III – Order BacklogTons

Source: unaudited management accountsData relating to RDM Group world WLC, tons per week

VOLUMES

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53

2007 2008 2009 2010


Section III – Production Efficiency

Jan. 1, 2007 = 100

OPERATING RATE IS IMPROVING THANKS TO INTERNAL ASSETS RATIONALISATION

Source: unaudited management accountsData relating to RDM Group, working days on calendar year

60

70

80

90

100

110

120

1Q

07

2Q

07

3Q

07

4Q

07

1Q

08

2Q

08

3Q

08

4Q

08

1Q

09

2Q

09

3Q

09

4Q

09

Feb

2010


Section III - Trend of the spread

18 Source: Company data as at Dec, 31 2009

A NARROWING SPREAD CAUSED BY GROWING COSTS WILL HELP REDUCE OVERCAPACITY…

Jan. 1, 2006 = 100

80

90

100

110

120

130

140

Year 06 Year 07 Year 08 1Q09 2Q09 3Q09 4Q09 Feb 2010

net selling price raw material cost spread


Section III - Reducing overcapacity

19

2006: De Endracht (Holland) closure: 130,000 tons

2006: Rio Verde (Spain) closure: 45,000 tons

2007: Romani (Spain) closure: 30,000 tons

2007: Nikopol (MAYR MELNHOF - Bulgaria) closure: 80,000 tons

2008: Papelera del Centro (Spain) closure: 45,000 tons

2009: Blendecques BM5 (RENO DE MEDICI - FR) closure: 60,000 tons

2009: Marzabotto (RENO DE MEDICI - ITALY) closure: 90,000 tons

…A TREND THAT STARTED 4 YEARS AGO, AMOUNTING TO 480,000 TONS SO FAR:

Source: Company estimates


Section III – Order Inflow

Jan. 1, 2007 = 100

PRICES DEVELOPMENT

Source: unaudited management accountsData relating to RDM Group world WLC, standard unit prices

75

80

85

90

95

100

105

110

115

120

1Q

07

2Q

07

3Q

07

4Q

07

1Q

08

2Q

08

3Q

08

4Q

08

1Q

09

2Q

09

3Q

09

4Q

09

Feb

2010

Conclusion


Conclusion

� Improvement of the product portfolio to customer� Specialisation by market and by product to offer a wide

spectrum of packaging solutions

� Strong asset base and continue capex expenditure tostrengthen our best performing mills

� R&D to help maximise cross-selling opportunities


Conclusion

IN THE CURRENT ENVIRONMENT ONLY THE BEST PERFORMING MACHINES WILL CREATE VALUE

BM >200 kton

35%

53%

12%

RDM M.M Weig

No. BM:

1

No. BM:

3

No. BM:

3

BM <200 kton

89%

11%

RDM Others

No. BM: 20

No. BM:

4

Board Machine producing over 200,000tons and respective production capacity

Source: Company estimates

Board Machine producing less than 200,000 tons and respective production capacity


PRODUCERS CONVERTERS END-USERS

RecycledFibers

Virigin

Fibers

Flexible

GROW

ING

PACKAGING VALUE CHAIN

La Rochette

Djupafors

Conclusion

Growing opportunity to improve products portfolio, better serving end-users



Market Cap.

78

N.F.P. 131

209

257FixedAssets

70 N.W.C

327~ 118

28 Lands

45 Buildings

184 Machinery

Conclusion

____________________Source: Unaudited management accounts. Data in millions of Euro, as of 31 December 2009

VALUATION MULTIPLES

“Market value” “Book value”

which should lead to better valuation

Increase profitability will come from:

� adjust supply to demand

� reduce fixed costs

� Increase selling prices

Appendices


Market42,32%

Management0,16%

Cascades Sas

35,01%

*

Industria e Innovazione

SpA9,05%

*SianoDante5,42%

*

EurinvestFinanza

Stabile Srl5,51%

*

Bonati Fabio2,53%

27

Appendices – Shareholders

* Shareholders’ Agreement



Appendices – Corporate Governance


Christian Dubé Chairman

Giuseppe Garofano Deputy Chairman

Ignazio Capuano Managing Director

Riccardo Ciardullo Director

Sergio Garribba Director

Robert Hall Director

Laurent Lemaire Director

Mirko Leo Director

Vincenzo Nicastro Director

Carlo Peretti Director

Emanuele Rossini Director

BOARD OF DIRECTORS

Sergio Pivato Chairman

Giovanni Maria Conti Standing auditor

Carlo Tavormina Standing auditor

BOARD OF STATUTORY AUDITORS

INDEPENDENT AUDITORS

PricewaterhouseCoopers S.p.A


Appendices – Group’s structure


70%

Reno De MediciSpA

Production

plantsSheeting and

distribution centres

Italian

Mills

RDM

Arnsberg

RDM

Blendecques

RDM

Iberica

Manucor

RDM

Uk

Emmaus

Pack

C.A.M

Pac

Services

Careo

SpainCareo

France

Careo

Poland

Careo

RussiaCareo

UK

Careo

Hungary

Careo

Czech.

Rep.

Careo

Germany

Sales

organizations

100%

51%

100%

33%

Tissue

Core

51%

100%

22,75%

100%

100%

100% CareoS.r.l

For more information:www.renodemedici.it

Guido Vigorelli – [email protected]

Laurence Duretz – [email protected]

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