Munksjö Capital Markets Day 2014

Business Area Decor

Norbert Mix Business Area Manager, Sales and Marketing

Decor

33% Business area share* of

group sales in %

40% Business area share* of

group EBITDA (adj.**)

1–2

Position in key market

segment(s)***

2

* January–September 2014, excluding segment Others and internal eliminations ** Adjusted for non-recurring items *** Management estimate

• Decor offers a complete product portfolio for decor paper applications. Decor paper is a technically

advanced and highly engineered product for surface upgrading of wood-based panels. It can be used in

the production of furniture, flooring and other interior and exterior architectural panels.

• Technology and innovation are key assets to bring added value to our customers. Our profound

process know-how leads to customized, efficient solutions, that result in product and process

improvements for our customers for example an excellent paper surface for higher printing quality or

less resin consumption.

• We offer individual, made-to-measure customer services including supply chain solutions and

(on site) technical support. We believe that our deep knowledge and product quality in addition to high

quality flexible production drives profitability.

Decor – Global presence

Sales Office

2 1

3

Aalen-Unterkochen

Dettingen, Germany

Arches, France

Tolosa, Spain

2

3

4

Production Sites

1

4

3

Decor – market drivers

4

GDP

Urbanisation

Housing

Regulation

in Pharma

and

Cosmetics

Disposable

income

Material

innovation

Substitution

Decor – overview

Industries served Applications

5

• Furniture manufacturing

• Interior design

• Laminate flooring

• Other interior and exterior

architectural panels

• Pharma

• Cosmetics

Decor Paper

Pharmaceutical

Leaflet Paper

Office furniture, living-,

dining- and bedroom,

kitchen cabinets, laminate

flooring, shop-fitting,

counter-/worktops

Packaging inserts

Products

Key competitors

Technocell Decor

Koehler

Malta Decor

Decor Paper Pharmaceutical Leaflet Paper

Delfort

95%

of BA

5%

of BA

Decor – an innovation partner

Skilled personnel

Flexible production

with high quality

Deep knowledge and

fulfilment of customers

technical requirements

Quality in products

Strong customer relationships

and customer service teams

Global presence

Centralised service

Short lead times

We offer innovation competence and lead the challenge

to design the next generation of decor paper products

6

Examples of value-adding customer solutions

Color RANGE 3 project

New offer where customers will

benefit from papers with the

best price/quality ratio, a good

supply chain solution to reduce

lead time, but also the widest

choice of standard colors

demanded by the end market.

M-Jet

Treated print base paper for

digital printing. Specially

developed printability for inkjet

digital printers, that offers the

best printing results for

individually created designs.

Project STARDUST

A solution driven by customer

need, that offers a surface

finishing and a metallic effect for

HPL (High Pressure Laminate)

customers.

We have developed a special

decor paper built around a mass of

silver metallic particles. Inline with

the overlay for HPL or LPL (Low

Pressure Laminate), it provides a

translucent paper projected on the

top of the surface. This gives an

impressive and deep metallic

rendering with a 3D effect.

The customer does not need to

keep additional colors in stock- it

only needs to use the existing

range of colors – providing a clear

unique selling point.

7

Munksjö’s position in the Decor Paper value chain

Source: Vision Hunters, company data, AWA

Paper Printing Impregnation

Munksjö

Technocell

Malta-Decor

Koehler

Hoffsümmer

Cartiere di

Guarcino

Coveright

Schattdecor

Surteco Decor

Egger

Kronospan (Malta-Decor)

Pfleiderer Munksjö competitor

Paper buyer

Lamination on wood

based panels

Furniture and interior

design manufacturers

8

Munksjö’s role in the Decor Paper value chain

• Munksjö offers a variety of different surface solutions to cover all needs in the

value chain

• Munksjö is a partner in this process by understanding that the success of all

other partners depends on the quality of the paper

• We manage this responsibility by using our know-how and exerting a positive

influence on every stage of the process, adding value to our customers and

ensuring success of the entire industry

9

Munksjö drives value throughout the Decor Paper value chain

Paper Printing Impregnation Lamination on wood

based panels

Furniture and interior

design manufacturers

Decor Paper – world market (incl. China)

10

Source: Munksjö’s Decor‘s Market Research Team. Munksjö’s global Market Research of panel surfacing materials and decor paper is based on the analysis and evaluation of

more than 350 customers worldwide in over 50 countries.

Global production of Surface Coating Materials

11

GLOBAL PRODUCTION OF SURFACE COATING

MATERIALS*

GLOBAL PRODUCTION OF SURFACE

COATING MATERIALS

2012 AND 2013 [MIO. M²]*

* Source: Munksjö’s Decor‘s Market Research Team. Munksjö’s global Market Research of panel surfacing materials

and decor paper is based on the analysis and evaluation of more than 350 customers worldwide in over 50 countries.

Decor Paper market (e)

12

DECOR PAPER WORLD MARKET (EXCL.CHINA) ESTIMATED TO CAGR

(2.1% - +3.7%) 2012–2015 *

GROWTH OF DECOR PAPER

DEMAND 2013*

* Source: Munksjö’s Decor‘s Market Research Team. Munksjö’s global Market Research of panel surfacing materials

and decor paper is based on the analysis and evaluation of more than 350 customers worldwide in over 50 countries.

Sourcing

• Global, responsible,

certified supplier

• Source either FSC®

certified, PEFC™ certified

• All our products are

available with FSC Chain

of Custody certification.

Products with FSC Mix

certification are available

upon request.

Manufacturing Clean and green

• ISO14001:2004 and

2009

• ISO 50001/EN16001

• FSC ®, PEFC ™

Chain-of-Custody

• OHSAS 18001:2007

• Energy efficiency

• Minimize waste

• Minimize emissions

• Pre-impregnation without

formaldehyde, other

impregnates comply with

E1 regulation limits

• Sound waste management

• REACH compliant

• Manufacturing with strict

guidelines, with the ambition

to exceed legal requirements

• Contribution to greenhouse

gas reduction

A framework for sustainability

13

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

2

4

6

8

10

12

14

16

Q312

Q412

Q113

Q213

Q313

Q413

Q114

Q214

Q314

%

MEUR

EBITDA and margin (adj.*)

90

100 96 96

87 90 98 96

89

0

20

40

60

80

100

120

Q312

Q412

Q113

Q213

Q313

Q413

Q114

Q214

Q314

MEUR Net sales

Decor – financial development

* Adjusted for non-recurring items

14

Decor – EBITDA target and drivers

15

11,7%

EBITDA (adj.*) LTM**Q3/2014

Profitable growth Product and servicequality

Operational efficiency EBITDA at the end of2016

15–16%

* Adjusted for non-recurring items

** LTM = Last 12 months

Grow organically and

profitably and in

addition take market

share through

innovation

Invest to release

uncaptured

potential by

increased quality

and product

upgrades

Continuously

optimise our raw

material cost, energy

efficiency and

improve our fixed

cost base

Decor – EBITDA target and actions

Profitable growth

Product and

service quality

• Continue to grow with the market in developed and emerging

markets

• Continue to drive mix improvements

• Full leverage on product launches made in 2014

• Invest further to enable expansion and increase production

efficiency by improving certain quality characteristics

• Further cost adjustments planned

Operational

efficiency

16

Summary and conclusions

1. Decor Paper production is characterised by high entry barriers

2. Munksjö is seen as a high-quality supplier characterised by higher reliability

and is a leader in quality and price

3. The market for Decor Paper is characterised by healthy organic growth

4. Decor Paper has the potential to become the most preferred surface material

in the future

5. Profitability target to be achieved through profitable growth, product and

service quality and operational efficiency

17