A DREAM Risi North America Conference – 10/04/2016 Luigi Lazzareschi – CEO of the Sofidel Group

WHO WE ARE

Sofidel Group, owned by the two families,Stefani and Lazzareschi, is the main Italianproducer and one of the most important in theworld of tissue paper for hygienic and domesticuse, namely: toilet paper, kitchen rolls, papernapkins and handkerchiefs.

Founded in 1966, 50 years ago, Sofidel hasgrown constantly in all dimensions: from turnoverto profit, in volumes to geographic coverage, andsocial return in terms of well-being for thecommunity.

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THE 4 PHASES OF OUR GROWTH IN EUROPE

Launch of the business in Italy anddedication to export in northern Europe.

FIRST PHASE 1966 – 1990 SECOND PHASE 1990 – 2007

Building green field operations France,Poland, Germany, UK, Spain.

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Sofidel learns about the market and thetechnology. It grows and strengthensinvesting prevalently in production plantsin Italy. Collaboration with big Europeanretailers.

This is the internationalisation phasedeveloped through important greenfieldinvestments. Sofidel followed the greatdevelopment of big retailers mainly with theirprivate label. Increases in productioncapacities made possible by a still growingEuropean market (3-4% per annum).

4

Acquisitions in Greece, Sweden, Belgium,Turkey, Romania, Hungary, but alsoacquiring additional sites in France, UK andGermany.

THIRD PHASE 2008 – 2015 FOURTH PHASE 2016 - FUTURE

In Europe we are going to grow at a smallerpace, through organic growth, by increasingcapacity in existing sites.

THE 4 PHASES OF OUR GROWTH IN EUROPE

This is the phase of acquisitions. With thecrisis that began in 2008, in fact, our marketchanged as well. In a difficult economic andfinancial context acquisitions prove to be awinning and quick tool to grow and developour presence on the markets. We implementa massive multi-brand strategy.

Many of our sites were built in order to beeasely enlarged in the future. Our productionsites in Germany, France, Poland, GreatBritain and Spain, for example, have enoughspace to be doubled in size and, in somecases, even tripled. Organic growth, morecontinuous and less traumatic.Polish expansion already announced.

KEY NUMBERS

5,514EMPLOYEES

1,809 €CONSOLIDATED TURNOVERIN MILLIONS

13COUNTRIES

1,058,000 TONSANNUAL PRODUCTION CAPACITY

Source: Sofidel SpA - 12/31/2015

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2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

359443 463

530 556608

664

915

1052 1020

1453 14561511

16991771

TURNOVER FROM 2000 TO 2015

1809

Source: Sofidel SpA 12/31/2015 – Consolidated turnover in millions of Euro

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PRIVATE LABEL 52.7%

AFH14.9%

JUMBO ROLL6.8% BRAND

25.1%

OTHERS0.5%

UK/Ireland 23.1%Italy 16.6%Germany 13.1%France 12.0%USA 10.3%Poland 5.3%Others 19.6%

TURNOVER BREAKDOWN AT THE END OF 2015

BY BUSINESS LINES BY COUNTRY

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Source: Sofidel SpA - 12/31/2015

2013 2014 2015

13.95%15.30%

12.04 %

207,079 €250,357 €

221,344 €

EBITDA FROM 2013 TO 2015

EBITDA ( thousand of € )

EBITDA / net sales

Source: Sofidel SpA 12/31/2015

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SOFIDEL POLAND

SOFFASSMonfalcone

INTERTISSUESwansea

IBERTISSUESOFIDEL

KAGIT

WERRA PAPIER

SOFIDEL GREECE

SOFIDEL UKLeicester

SOFIDEL SWEDEN

SOFIDEL BENELUX

SOFIDELFRANCE

NancySOFIDELROMANIA

SOFIDELFRANCE Ingrandes

SOFIDELFRANCE Roanne

INTERTISSUEHorwich

SOFIDEL UKLancaster

SOFIDEL GMBH

SOFIDELSOFFASS

SOFIDEL HUNGARY

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SOFIDEL’S EUROPEAN PRESENCE: CLOSE TO OUR CLIENTS/MARKETS

THREE VARIABLES THAT SOFIDEL USES TO ASSESS ITS GROWTH

Market shares, volumes, employees andgeographical coverage: growth has beenconstant for the past 20 years

Economic results: good EBITDA and itsnumbers exceed the market average

Social return: the social benefits that Sofidel'sactivity produces

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SOME OF OUR MOST IMPORTANT LEVERS OF GROWTH

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Sustainability, as a factor of cultural development and competitive growth.

Sofidel regards product innovation and environmental sustainability as crucial factors even inorder to increase margins. Consistently with our “Less is more” approach, the aim is to offerproducts with an ever shrinking ecological footprint and higher functional qualities; products thatenclose lower share of natural capital thanks to innovative performance.

SUSTAINABILITY POLICIES REGARDING THE ENVIRONMENT

As a company operating in the tissue sector, ahigh energy consuming sector, Sofidel hasresolved to primarily commit to environmentalsustainability.

Environmental sustainability policies favourglobal aspects such as fighting climate changes,commitment protecting the forestry heritage andoptimising the use of water resources.

FIGHTING CLIMATE CHANGES

COMMITMENT TO SAFEGUARDE OUR FOREST HERITAGES

OPTIMISING THE USE OF WATER RESOURCES

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SUSTAINABILITY RESULTS

REDUCTION OF CO2 EMISSIONSThe investments made in renewable energy sources* improving energyefficiency and the use of cogeneration plants have led to an 17.8% reduction inCarbon Intensity** 2009/2015. Sofidel is currently committed to setting achallenging new target to reduce greenhouse gases across all its new plants(http://www.sofidel.com/en/sustainability/environment).[* Renewable sources: solar power, hydroelectric and biomass][** Carbon intensity: emissions set against the amount of paper produced]

FIBER SOURCING POLICYSofidel continue to consolidate its commitment to reduce the risk of receivingsupplies from controversial or illegal sources. In 2015, 99.97% of the pulp usedwas from certified or controlled sources, in accordance with the majorcertification schemes (FSC®, PEFC™ e SFI™).In 2014, the percentage was 99.7%.

WATER RESOURCESIn 2015, the specific average amount of water consumed by Sofidel processeswas 7.3* litres per kg of paper produced (compared to 7.8 l/kg in 2014).[* Sector benchmark: 15-25 litri/kg]

-17.8%REDUCTION IN CARBONINTENSITY (2009/2015)

99.97%OF PULP FROM CERTIFIED OR CONTROLLED SOURCES

7.3l/kgLITRES OF WATER USED ON AVERAGE PER KG OF PAPER PRODUCED13 Source: Sofidel SpA - 12/31/2015

SOFIDEL AND WWF: A FUNDAMENTAL PARTNERSHIP

Sofidel is the first Italian company and the first in the world in the tissue sector to join the WWF's Climate Savers programme.

Climate Savers asks major leading companiesto voluntarily adopt plans to reduce greenhousegas emissions through innovative technologiesand strategies that allow them to take on aleading role in cutting CO2 emissions.

IN 2008

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-23% of greenhouse gas emissions for eachtonne of paper produced compared with 2009.In comparison terms, this means reducing theemissions of approximately 900,000 tonnes ofCO2, equivalent to the emissions of a fleet of10,000 HGVs (Heavy Goods Vehicles) travelling10,000 km each per year for 10 years.

-13% of indirect emissions (emitted by thirdparties, along Sofidel’s value chain) for eachtonne of paper produced, compared to 2010.

8% of the total energy consumed annually tocome from renewal energy sources.

THE 2020 TARGETS

WHY US?

LOVE

PASSION

DREAMS

GROWTH

In 2012, Sofidel broadens its horizons and lands in the US. Here, it acquires Cellynne, now knownas Sofidel America, active in the Away-from-Home market with three plants: an integrated one inHaines City (FL) and two converting ones in Green Bay (WI), and in Henderson (NV).

Sofidel's annual production capacity exceeds one million tonnes.

2012

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THE GROWTH IN THE US

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SOFIDEL AMERICAHenderson, NV

SOFIDEL AMERICAGreen Bay, WI

SOFIDEL AMERICAHaines City, FL

US

PRESENCE IN THE US - 2012

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Sofidel opens a new operation in Tulsa (OK).

THE GROWTH IN THE US

2014

Sofidel acquires a new converting plant inGreen Bay (WI).

Sofidel opens a new converting plant inHattiesburg (MS).

Sofidel opens new offices in Pennsylvania(PA).

Sofidel announces a new greenfieldinvestment in Circleville (OH) to build alarge integrated plant.

2015

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SOFIDEL AMERICAHenderson, NV

SOFIDEL AMERICAGreen Bay, WI

SOFIDEL AMERICAPhiladelphia, PA

SOFIDEL AMERICAHaines City, FL

SOFIDEL AMERICAHatteisburg, MS

SOFIDEL AMERICATulsa, OK

US

PRESENCE IN THE US

SOFIDEL AMERICACircleville, OH

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OUR RESPONSIBILITY BECOMES EVEN GREATER

On 21 June 2016 US President Barack Obama mentioned Sofidel in reference to its investmentin Ohio in his speech at the SelectUSA Investment Summit, the event dedicated to promotingdirect foreign investment in the US.It was something that moved myself in depth. The real moment in which I realized how muchimportant and demanding was the step we had taken.

2016

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CIRCLEVILLE: OUR FIRST GREENFIELD INVESTMENT

In July: groundbreaking of the new plant in Circleville (OH).

The selected area offers important cities located within a few hundred kilometers and is a well-established logistics hub for distribution operators.

280 acres of relatively flat land, good road system, railway connected, good availability of water,gas and electricity. Good airport, good logistics, intermodal capabilities, lots of customers’distribution centers. And a potential workforce of educated and hardworking people.

By the end of 2017, part of the plant will be already producing finished product, and by mid-2018the plant should be fully operational employing at completion of the first phase more than 300people.

This site is big enough that in the future we could add additional paper machines and convertinglines. Potentially this site may become Sofidel’s largest operation.

SOFIDEL AMERICA

Haines City, FL

SOFIDEL AMERICA

Green Bay, WI

SOFIDEL AMERICA

Henderson, NV

SOFIDEL AMERICATulsa, OK SOFIDEL

AMERICAHattiesburg, MS

SOFIDEL AMERICA

Circleville, OH

SOFIDEL AMERICA: SITES CLOSE TO THE MARKETS

Sofidel America’s plant based in Haines (FL) commissioned a new cogeneration plant (CHP –Combined Heat & Power). By turning to a less polluting source of energy, such as methane gas,whilst simultaneously producing both heat and energy, CO2 emissions can be reduced andenergy costs can also be cut.

2014

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LOWER GREENHOUSE EMISSIONS: COGENERATION PLANT AT SOFIDEL AMERICA’S HAINES PLANT

Sofidel installed two new state-of-the-art converting machines in Sofidel America inHattiesburg (MS). It is the cutting edge technology Constellation, produced by Perini, guaranteesuniform winding from first to last sheet with every kind of paper.

One again is expected to be installed in Hattiesburg (MS) by Q1 2017.

Another Constellation machine will be installed in Green Bay (WI) by Q1 2017.

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NEW CUTTING EDGE CONVERTING LINES

2016/2017

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ADVANTAGE NEW TISSUE TECHNOLOGY (NTT) 200 MACHINE PRODUCED BY VALMET

Sofidel will install in the Sofidel America new plant in Circleville two latest-generation machinesfor the production of tissue. The first will be running by Q1, the second by Q3.

It is the Advantage New Tissue Technology (NTT) 200 machine produced by Valmet, thatmanufactures both conventional and textured tissue. It will allow Sofidel America to furtherimprove the quality of its product range and increase further the plant’s energy efficiency.

The new machine, that has a 5.5 metres size and a speed of 2,000 metres per minute and aproduction capacity of 70,000 tons a year. Valmet’s supply includes the stock preparation as wellas the entire automation system.

NTT technology allows the production of tissue with minor energy and fiber consumptions in anextremely flexible way, and it is consistent with Sofidel’s sustainability strategy for environmentalfootprint reduction.

Furthermore Sofidel will install at least three Constellation machines in the Sofidel America newplant in Circleville from Q1 to Q2.

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A LATEST-GENERATION MACHINE FOR THE PRODUCTION OF TISSUE

2018

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OTHER INNOVATIVE TECNOLOGIES WILL BE INSTALLED IN CIRCLEVILLE

The new mill will have a gas turbine cogeneration plant integrated with the Yankee hood airsystem. Whereas in a traditional cogeneration plant, the exhaust produced by the gas turbine isonly used to generate steam by a recovery boiler, in our new integrated system, the turbineexhaust will be sent directly to the hoods of tissue machine to dry the paper and then recovered toproduce the steam for the Yankee dryer.

As result, this system will provide almost all the energy needed for the drying process and, insome conditions, will allow to run the tissue machine without any further gas consumption(burners off).

This means energy efficiency improving and significantly CO2 emissions reduction:

Gas consumption estimated reduction: by 15-20% a year CO2 emissions estimated reduction: over 8.900 ton a year

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OTHER INNOVATIVE TECNOLOGIES WILL BE INSTALLED IN CIRCLEVILLE

Another peculiarity of the new facility will also be the high automation level of internal logisticmanagement, completely automatic from the paper mill up to the shipping of the finish product.By means Laser Guided Vehicles (LGVs), parent reels will be automatically handled from papermill to the warehouse and from here to each converting line; LGVs will be used for raw materialsand finished products handling.

Wrapped finished products will be stored in a full automatic warehouse (Smart Store): with its 7levels height and 2.940 rows, this warehouse will store over 50.000 pallets. Based on customers’orders, the Smart Store will be able to automatically select, pick up, move the finished productsand have them available for truck shipping.

THAT’S ALL,THANK YOU FOR YOUR ATTENTION

GOOD NEWS FROM US TISSUE CONSUMPTION

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In the last year (2015) total tissue consumption grew by 2.2% in the US.

The growth rate of AfH exceeded 3%.

(source Esko Uutela)

ROOM FOR GROWTH: PL SECTOR

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AFH represents a large part of our market shares in the US.

However Sofidel regards the private label sector as the most attractive.

Today in Europe private labels represent about 65-70% of the tissue market share. In the US,private labels carry less weight compared to Europe. Sofidel expects that private labels will growsubstantially and this implies structural change in US production. This is the reason why Sofidelaims to grow in this sector.

OUR US SUBSIDIARY

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Sofidel America is a subsidiary of the Sofidel Group. It was established in 2012 through theacquisition of the Cellynne tissue company which was founded in 1988 with three production sitesin the USA – Haines City (FL), an integrated plant where the head office was based, Green Bay(WI) and Henderson (NV). The company is now active in 6 States – the original three alreadylisted, as well as Oklahoma (Tulsa), Mississippi (Hattiesburg) and Pennsylvania (Philadelphia)where we have a corporate office.

The company serves both the Away-From-Home and Consumer lines of business and represents10.3% of Sofidel’s turnover (2015).

A new integrated plant is currently under construction in Ohio (Circleville).

And we do not intend to stop.

OUR CURRENT CHALLENGES

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to increase our production capacity

to get closer to clients by gaining geographical coverage

to engage our stakeholders in our business model that is focused onsustainability, trust, and transparency

to pay attention to the needs and concern of our clients, consumers andcommunities

to find people with the right skill set we need

A DREAM CALLED AMERICA

First of all I would like to make you aware of my own story: I studied in the US, and I havedreamed to come back as an entrepreneur.I have always loved this country, a land where dreams do come true.

This has been one of the main reasons why Sofidel entered in the US market in 2012.

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BUT OBVIOUSLY THERE IS SOMETHING MORE TO POINT OUT…

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the US is the most important tissue market in the world in terms of per capita consumption

low number of players

to pursue a market diversification strategy

to balance the exchange rate risk

good business climate

good support from public bodies

legal certainty

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BY REPLICATING OUR EUROPEAN SUCCESSFUL STRATEGY IN US

Over the following years Sofidel is planning to replicate in the US market the successful strategyalready implemented as part of the company’s internationalization process in Europe, by launchinga few new greenfield investments and with new acquisitions

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

1.0761266

14641724

1885 1970

2451

3008 3115 3176

4526 44614788

50645255

EMPLOYEES FROM 2000 TO 2015

5514

42 Source: Sofidel SpA 12/31/2015

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

303366

426 426

576

694 694 719

956 956

10221050 1050

PRODUCTION CAPACITY FROM 2002 TO 2015

1058

Source: Sofidel SpA 12/31/2015 – Thousand of tonnes43

ClearwaterPaper

ICT C&S PaperGroup

MetsäTissue

Cascades KrugerTissue

WEPA CMPCTissue

Hengan Sofidel P&G APP G-P K-C SCA

395

1038

TOP FIFTEEN TISSUE MANUFACTURING COMPANIES IN THE WORLD

Fonte: RISI Outlook for World Tissue Business - 03/31/2015 – Thousands of tonnes44

457 466637 645 655 660 678

1058

1385

23382570

3787

4263

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SOFIDEL AMERICAHenderson, NV

SOFIDEL AMERICAGreen Bay, WI

SOFIDEL AMERICAPhiladelphia, PA

SOFIDEL AMERICAHaines City, FL

SOFIDEL AMERICAHatteisburg, MS

SOFIDEL AMERICATulsa, OK

US

PRESENCE IN THE US - 2015

SOME OF OUR MOST IMPORTANT LEVERS OF GROWTH

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Geographical coverage, with the presence of plants near the end markets (within a 600/800km radius from customers)