EKMAN & COCompany Overview and Pulp and Paper

Market Update

For ISM Northeast Wisconsin MeetingNovember 10, 2015

Introduction

• Jeff Sisto – VP Pulp Sales Ekman & Co Inc.

• 22 Years in the Business with 3 companies

• Manage a 4 person staff in Appleton with Sales of Approximately $220M Annually and 375,000 tons of product sold in 2014

• Responsible for Pulp Sales and Supply in US, Canada and Brazil.

Presentation Outline

• Show and Tell - Samples

• The Pulp Making Process

• Ekman and Co Overview

• Market Pulp Demand

• Drivers that Influence Market Pulp and Outlook for the Business

6AM-8AM•Tissue/Toilet Paper•Napkin•Paper Towel•Cereal Box•Coffee Filter/K-Cup/Tea Bag•Starbucks Cup/Pastry Bag

8AM-12PM•Cut Size Paper/Tablet•Sticky Notes•File Folders•Newspaper•Magazine•Flip Charts•Subway – Lunch•Sandwich Wrap/Cup/Napkin•Credit Card Receipt

1PM-6PM•Bills/Checks•Stamps•Envelopes•Calendar Notations•Set Flights•Hotels•Cars•Chipotle - Dinner•Online Shopping

Pulp in Everyday Use

Pulp and Paper Making Process

Market Pulp - Finished Product

Represented in >100 countries

Paper & Packaging

Ekman at a glance

Pulp Recovered Materials

Bioenergy

4.600.000tons/year

Incorporated in 1802

~270 employees 40 locations

Business concept

”To add value to the supply chain for

forest related products worldwide.”

• Financial solutions: Financing Inventories/production, Cash upon receipt of goods, credit risk coverage.

• Customer relationships.• Global real time information on products/markets for customers and suppliers.• Logistics solutions – warehouse JIT inventories, container, vessel, truck and rail

coordination/shipments.• Back office support: Full sales support functions for customers/suppliers.

Accounting, order entry/follow up, IT support and forestry certification documentation.

Our hubs – a truly global concept

Hong Kong

Gothenburg

Miami

Hub Office Sales Office

Ekman Group Top Markets, 2014

China

USA

South

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dia

Denm

ark

Taiwan

Turke

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Belgi

um

Germ

any

Indo

nesia

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

Tonnage

2014 Market Pulp Demand WI, N.A. and Global

• Wisconsin: 6.4 M Tons Paper/Board per Year

200K Tons Market Pulp per Year

Consuming 1.3M Tons of Market Pulp per Year

WI = 17% of N.A. Demand for Pulp

• N.A.: 7.5 M Tons of Market Pulp Demand

• World: 52.8 M Tons of Market Pulp Demand +

13.2 M Tons of “Other” Market Pulp

= 66 M Tons of Market Pulp

= 55B US$ Business

2014 Global Pulp Demand by Region

29%

4%

18%14%

29%

6%

ChinaJapanMiddle East, Africa, Eastern EuropeNorth AmericaWest EuropeLatin America

US Printing and Writing Business 2003 – 2015 a steady decline

Not All Gloom and Doom!

• Global Demand is up 2.2% 2004 – 2014 (45 M to 53 M Tons)

Brian McClay & Associates Inc.

Key Market Drivers Influence on the Pulp and Paper Business

• Global economies drive the pulp and paper business

• Shrinking printing paper markets in US and Europe – influenced by internet (Newsprint, Magazines and Direct Mail)

• However, growth in tissue and board globally (including USA) (7 new tissue machines in US market 2015 – 2017)

• Paper industry consolidation will continue (mergers, acquisitions and private equity) Consolidated Papers/Stora Enso, Champion/I.P., I.P./Verso, NewPage/Verso, GP/Buckeye, RockTenn/MeadWestvaco, Wausau Paper/Expera and Wausau Tissue/SCA.

• Plantation Eucalyptus – explosive pulp production growth in Brazil and Chile. (2005 = 10 M

Tons 2015 = 20M Tons)

• Growth in Dissolving Pulp, Fluff Pulp, Cement Board Siding and Powder Cellulose

2016 Outlook for the Pulp and Paper Business

• Continued downward pressure on market pulp prices in 2016, mainly due to strong US$ and continued over supply of market pulp (Eucalyptus and Fluff)

• Risk of pulp mill downtime or even closures if prices/discounts drop much further. (Old Town, ME)

• Further consolidation in the paper business. Sappi, Verso, UPM, I.P. and RockTenn (WestRock) will be active.

• Competition from foreign paper producers will continue, especially in printing and writing papers. (China, Korea, Brazil, Canada and Europe).

• Specialty paper makers with niche products will continue to survive and in some cases thrive. Local WI examples are: Badger Paper, Shawano Specialty, Expera and Neenah Papers.

Other emerging markets have good growth prospects!!!

ONE OF THE WORLD’S LEADING SALES AND MARKETING ORGANIZATIONS FOCUSING ON THE GLOBAL FOREST INDUSTRY