Portucel presentation Investor Relations

April 2013
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Confidential
Confidential

DRAFT
April 2013

Disclaimer

This presentation contains “forward-looking statements” regarding Portucel SA (“Portucel”) and its future business. Such
statements are not historical facts and may include opinions and expectations about management’s confidence and
strategies as well as details of management’s expectations regarding Portucel’s future financial position and results of
operations, Portucel’s strategy, plans, objectives, goals and targets, future developments in the markets in which
Portucel participates or is seeking to participate or anticipated regulatory changes in the markets in which Portucel
operates or intends to operate. Although Portucel believes its opinions and expectations are based on reasonable
assumptions, these forward-looking statements are subject to numerous risks and uncertainties, not all of which will be
exhaustively explored in this presentation or elsewhere. Accordingly, you should not regard such statements as
representations as to whether such anticipated events will occur nor that expected objectives will be achieved. You are
reminded that all forward-looking statements in this presentation are made as of the date hereof and for the avoidance of
doubt Portucel does not undertake to update any such statement made to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events. For the avoidance of doubt, Portucel does not accept any
liability in respect of any such forward-looking statements.

This presentation contains developed estimates regarding the relevant segments of the paper industry, our position in
the industry, our market share and the market shares of various industry participants based on experience, our own
investigation of market conditions and our review of industry publications, including information made available to the
public by our competitors. While we have examined and relied upon certain market or other industry data from external
sources as the basis of our estimates, we have not verified that data independently. We cannot assure you of the
accuracy and completeness of such data. While we believe our internal estimates to be reasonable, these estimates
have not been verified by any independent sources we cannot assure their accuracy. Our estimates involve risks and
uncertainties and are subject to change based on various factors.

April 2013 1

1. Overview

Company snapshot

2012 Revenue: €1.5bn
2012 EBITDA: €385mn

Forest Pulp Paper Sales Energy

120,000 ha of forest Production Production Network of c.4,400 2.5 TWh of electricity
under management in capacity of 1.4mt capacity of 1.6mt points of delivery capacity
Portugal
13 commercial Produces more
65,000 ha owned by c.0.25mt sold 95% sold outside subsidiaries energy than it
Portucel externally Portugal
consumes

 Portucel sells to around 115 countries in 5 continents

Source: Company information.

Leading European UWF manufacturer with strong integration into forestry, pulp and energy
April 2013 2

1. Overview

Company snapshot

Consolidated revenues by division1 Revenues by destination1

Other
Energy 1%
12% Portugal
Other 17%
24%
Pulp
8%

Germany
12%

America
11%
Spain
9%
Paper Holland
79% 4%
UK France
7% Italy 10%
6%

1 Relates to 2012. Geographic split related to Pulp, Paper and Energy revenues.

83% of revenues from outside Portugal. Portuguese revenues primarily attributed to energy
April 2013 3

1. Overview

Controlling shareholder - Semapa Group

2012 Revenues: €1,953mn1
2012 EBITDA: €447mn1 Listed on the Euronext Lisbon
Market Cap.: €0.8bn2
Consolidated net debt: €1.6bn3 Included in main local index – the PSI 20
Net debt / 2012 PF EBITDA: 3.5x3

81% 100% 96%

Forestry, pulp, Cement + RMC + Aggregates +
Waste treatment
paper and energy Pre Cast Concrete

2012 Revenues: €1,502mn 2012 Revenues: €473mn4 2012 Revenues: €36mn
2012 EBITDA: €385mn 2012 EBITDA: €72mn4 2012 EBITDA: €9mn

Listed on the Euronext Lisbon
Included in main local index – the PSI 20
19% free float
Market cap. €1.9bn2

1 Revenues as reported with 51% proportional consolidation of Secil for the 1st quarter and 100% thereafter. EBITDA refers to recurrent EBITDA. Includes negative €12mn holding costs.
2 As at 10 April 2013.
3 Excluding Treasury shares (both at Portucel and at Semapa level). PF EBITDA of €455mn (including 100% of Secil for the full year).
4 PF for 100% of Secil Group for the FY plus 50% of the Supremo Group.

Portucel has been majority owned by Semapa since 2004
April 2013 4

2. Portucel investment proposition

Key company highlights

1 A leading manufacturer in an attractive segment of the paper industry

2 Growth through differentiation and superior offering

3 Geographically diversified and broad customer base

4 Integrated business model

5 Access to raw materials

6 Well-invested asset base

7 A leading producer of green energy – more than meets own energy requirements

8 Business model delivering high profitability

9 Strong and consistent EBITDA to cash conversion rate

10 Attractive pulp expansion opportunity

April 2013 5


1. A leading manufacturer in an attractive segment of the paper industry
1

European uncoated fine paper - total est. capacity Uncoated woodfree (UWF) European mills

Portucel Figueira da Foz Setúbal

Portucel Mondi Theresienthal Ruzomberok Syktyvkar
13%
Kematen
Stora Enso Veitsiluoto Nymolla Varkaus
Docelles1
Other Mondi UPM Kuusankoski Nordland
45% 12%
International Paper Saillat Kwidzyn Svetogorsk

Metsa Husum

Stora Arctic paper Kostrzyn Munkedal
Enso
11% Zicuñaga Zicuñaga
Everbal
Clairefontaine Mandeure
Clairefontaine Integrated
UPM
10% Sappi Stockstadt Non Integrated
IP
9% Capacity,
1,000 t/a 0 200 400 600 800 1,000 1,200 1,400

Source: Company information, Risi.
1 To be closed or sold.

No. 1 in European UWF fine paper. As well as being integrated into pulp and paper, Portucel
has the largest and most modern mills in Europe
April 2013 6


1. A leading manufacturer in an attractive segment of the paper industry
1

Portucel gaining market share Mill brand sales evolution
Estimated market share 64%
Sales mix Increase 63%
2011 2012

62%
60%
59%
18% 8% 9% 1% 59%

52%
26%
21% 22% 1%

45%

41%

37% 36%
56% 18% 20% 2%

32% 32%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Cut-size Folio Reels


Significant focus on the value–added premium segment and Cut-size and Folio vs. Reels. High
mill brand share of sales
April 2013 7


6. Growth through differentiation and superior offering
2

Europe
industry Portucel estimated market share in Europe – 2012
Portucel
average1

Growth in 20122 +1% -3.6% Premium 45%+

Premium Products 55% 17% (e)

Cut-size 20%
Sheets 82% 69%

Folio 22%
Mill Brands 62% 25% (e)
Reels 9%

Operating Rates 100% 93%
Total 17%
Source: Company information, Cepifine.
1 Including Portucel.

2 UWF market growth in Europe (2012 over 2011).

55% of business in premium products – highest quality and priced above standard market
prices – and 62% in Mill Brands (own brands)

April 2013 8


6. Growth through differentiation and superior offering
2

Share in Europe for UWF Cut-size < 80 g/m² Portucel Cut-size est. market share by basis weight in 2011

10.6% 62%

9.3%

8.0% 8.1%

6.7%
6.3%

4.3%

18%
13% 13%

2005 2006 2007 2008 2009 2010 2011 60–80 gsm 80 gsm 90–120 gsm Total

Source: CEPIFINE basis weight surveys of deliveries to EU27+NO+CH and Company information.
Note: Europe relates to EU27 + NO + CH.

Low basis weight market share is increasing continuously. Portucel, due to its technology,
cost, brand and positioning, is winning in the market place

April 2013 9


2. Geographically diversified and broad customer base
3

Paper – external sales Pulp – external sales
 95% of 2012 paper sales outside Portugal  95% of total pulp sales in 2012 outside Portugal
 c.4,400 points of delivery  Majority of pulp sold to specialty paper and decor

Portugal Portugal
Other
5% America 5%
2%
13%
Other Germany
15% 32%
Germany
12%
Other
Europe
Other €1,193mn 23% €122mn
Europe
13%
France
12%
Holland
3% Holland Spain
12% 11%
UK Spain
8% 11%
Italy Poland
8% 15%


Portucel exports 95% of its pulp and paper production. Growing sales outside Europe
April 2013 10


4. Integrated business model
4

Forestry Pulp mills Paper mills Distribution Energy

120 thousand Production Production c.4,400 points of 2.5 TWh of
hectares of capacity: 1.4mt capacity: 1.6mt delivery electricity
forest under of pulp per year of paper per capacity
management year .

Produces more
80% of pulp energy than it
c.15% of
integrated consumes
wood needs
into paper

The group has three productive centres: two of them are integrated pulp and paper mills and
the third is a market pulp mill. They are all partially supplied with Eucalyptus from the group’s
own forests, which are certified by both FSC and PEFC schemes

April 2013 11


4. Access to raw materials
5

Wood purchase (m3)
millions
The Group manages 120 thousand ha of land in
5.0 3.4 4.1 4.5 3.9 Portugal:

4.5  73% is Eucalyptus Globulus

4.0  Forest management is certified by FSC®
(CO10852) and PEFC
3.5
 Largest producer of eucalyptus and pine in Portugal
3.0
and an important producer of cork
2.5 3.2 4.0
 €109m of biological assets on balance sheet as at
3.5 December 2012
2.0 2.9

1.5  Dedicated research forest institute

1.0  Largest European certified forest nursery

0.5
0.8
 Committed to forest fire protection, through sound
0.5 0.5 0.4 silviculture practices and dedicated fire suppression
– teams
2009 2010 2011 2012
Own wood Purchased


Portucel sources most of its wood from Portugal and Spain

April 2013 12


3. Well-invested asset base
6

Over €1.3bn invested in tangible assets since 2002 Asset investment focus

Capex driven by
500 investments in new paper Cost and market leadership in UWF
mill, natural gas and 505
biomass power plants
450

400
Competitiveness of Eucalyptus Globulus pulp assets
350

300
Green energy from biomass
250
247
200

150 Value-chain integration

100 129 130
96
50 67
43 52 33 30 Continuous cost reduction
19
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Note: Data as per Annual Management Reports.

High quality asset base reinforced by substantial investments

April 2013 13


7. A leading producer of green energy
7

Energy capacity evolution 2012 Energy production split by fuel type
(GWh)

471 Fuel 3%

337
169 Biomass
Natural Gas 65%
543 2.5TWh / annum 32%
of capacity
76

901

2008 2009 2010 2010 2012
Setubal Cacia / Figueira Figueira
Setubal

Biomass Natural Gas Fuel


Energy represented 12% of the Group’s net sales in 2012; the power generated at the three
mills makes the Group more than self-sufficient for its industrial activities

April 2013 14


8. Business model delivering high profitability
8

Portucel EBITDA margin vs industry1

Average: 25.2%

Average: 19.6% Average: 19.4% Average: 19.0%

Average: 8.8%

Average: 9.8%
Average: 8.4% Average: 4.4%
20.3%
28.9%
25.9%
25.7%

17.7%
18.4%
21.6%
20.6%

22.3%
20.7%
19.2%
15.5%

16.0%
21.5%
21.6%
16.8%

10.9%
10.1%

16.1%

1.5%
1.5%
8.5%

4.4%
7.1%
7.6%

7.8%
8.5%
7.6%
9.8%

9.5%

5.3%
na
NA
Portucel Group Company A Company B Company C Company D Company E Company F Company G

2009 2010 2011 2012 Average

Note: The information above has been sourced from the publicly available financial reports of the companies considered. In each case, we have applied the definition of EBITDA as described therein, with the
exception of when it was not disclosed, in which case, we have estimated EBITDA by taking recurrent operating profit + D&A. These companies, as well as other companies in the industry, may

calculate EBITDA differently, thereby limiting its usefulness as a comparative measure.
1 Other than for Portucel, financials represent the relevant division of each company.

EBITDA margins well above industry average
April 2013 15


9. Strong and consistent EBITDA to cash conversion rate
9

EBITDA and EBITDA - Capex margins

Last 9 years
 Average EBITDA – maintenance capex
30.0% average
2012A margin well above 20%

25.0% 2.2% 1.6%  Including all capex, margin of 14% over
the last 9 years despite Setúbal
20.0% investment

15.0%
 Strong performance in 2012
25.8% 25.7%
23.6% 24.1%
10.0%
− EBITDA minus total capex of €355mn
5.0%
− EBITDA minus maintenance capex
0.0% margin of 24.1%
EBITDA EBITDA - EBITDA EBITDA -
margin Maintenance margin Maintenance
capex margin capex margin

Margin Maintenance capex


Best in class cash generation profile

April 2013 16


8.
9 Strong and consistent EBITDA to cash conversion rate

Portucel EBITDA – Capex margin vs industry1

Average: 23.1%

Average: 14.8%

Average: 10.6%

Average: 10.6%
Average: 8.5%

Average: 6.8%
Average: 6.1%
Average: 6.2%
22.0%
23.7%
23.7%

12.2%
10.8%

17.9%
15.3%
16.2%

14.7%
10.8%

12.2%
10.4%
10.8%
8.7%

9.7%

9.4%
7.6%

7.9%
7.8%
4.9%

8.9%

4.7%
8.2%
7.7%
6.5%

9.2%

5.7%
3.3%
4.3%

nm
2.4%
nm

Portucel Group Company A Company B Company C Company D Company E Company F Company G

2009 2010 2011 2012 Average

Note: The information above has been sourced from the publicly available financial reports of the companies considered. In each case, we have applied the definition of EBITDA as described therein, with the
exception of when it was not disclosed, in which case, we have estimated EBITDA by taking recurrent operating profit + D&A. These companies, as well as other companies in the industry, may
calculate EBITDA differently, thereby limiting its usefulness as a comparative measure.
For all companies considered, financials relate to Group data.
3
1 Defined as: (EBITDA – Capex) / sales. “n.m.” represents Capex > EBITDA.

EBITDA – Capex margins well above industry average
April 2013 17


Attractive pulp expansion opportunity
10

Mozambique
 Granted the right by the Government of Mozambique to explore and develop an area of
c.356,000 ha into a forest base and a pulp mill

 Two permits granted:

− One to develop 173,000 ha in the region of Zambezia

− Another one to develop 183,000 ha in Manica

 273,000 ha is earmarked for eucalyptus plantation

 Currently conducting field tests of the two locations, assessing logistics and overall feasibility

 Portucel is the only pulp and paper company globally that has been granted such permit

Portucel has an attractive option to grow in pulp

April 2013 18

3. Financial performance

Financial overview

Portucel consolidated key financials

(€m unless otherwise stated, FYE 31 Dec) Actual 2009 Actual 2010 Actual 2011 Actual 2012

Revenues 1,095 1,385 1,488 1,502
A
EBITDA1 222 400 385 385
% of revenues 20.3% 28.9% 25.9% 25.7%

EBIT2 132 278 266 286
% of revenues 12.1% 20.1% 17.9% 19.1%

Capex3 505 B 96 33 30
% of revenues 46.1% 6.9% 2.2% 2.0%
EBITDA - Capex (283) 305 352 355
% of revenues n.m. 22.0% 23.7% 23.7%


A Mainly driven by the start-up of the new paper mill in Setubal


B Capex related to the new Setubal mill, natural gas and biomass power plants

1 Calculated as: operating results + depreciation + provisions.
2 Represents operating results.
3 Data as per Annual Management Reports.

Consistent and high level of cash flow
April 2013 19


Deleveraging and returning cash to shareholders

Net debt Dividends1 and share buybacks
(€m) (€m)

700 687
212

180 47

463

364

81 180
2

165
79
15

2009 2010 2011 2012 2009 2010 2011 2012

Dividends Buybacks
–
Source: Company annual and quarterly reports.

1 Dividends as at year of actual payment.

Significant deleveraging since 2009 following completion of capital expansion plan. Further
deleveraging since Q3 2012 - net debt down from €489m as of end September 2012 to €364m as
of end December 2012

April 2013 20


Capitalisation and share price performance

Market capitalisation 3 year share price performance
(€ millions except share price data and trading
multiples) 160
Share Price (€) 2.63
150
Number of shares (m) 720
140
Market capitalisation 1,894 33.1%
130

Net debt 364
120

1
Other adjustments 4 110

100 (2.9%)
Enterprise value 2,261
(5.2%)
90
(12.3%)
Multiples 2012A 80

EV / EBITDA 5.9x 70

EV / EBIT 7.9x 60
Apr-10 Aug-10 Jan-11 May-11 Oct-11 Feb-12 Jul-12 Nov-12 Apr-13
P/E 9.0x Portucel Euro STOXX
Portugal PSI General MSCI Paper & Forest Products

Portucel outperforming local, European, and Paper and Forestry indices, as investors
recognise strong cash generation capabilities
Source: Share price based on FactSet as of 10 April 2013.
1 Incudes pension adjustments, minority interest and associates investments. 2012 EBITDA €385mn, EBIT €286mn, Net earnings €211mn.

April 2013 21


Capital structure

Portucel current capital structure Maturity profile
(€ in millions)
As of Dec-12, (€ millions)
300
3
Portucel Amount Maturity Security x EBITDA
Cash and cash equivalents1 (329)
200
4
Bank loan 56 2018 Unsecured 0.1x 305
4
Bank loan 28 2021 Unsecured 0.1x 100 220
4
Bank loan 85 2024 Unsecured 0.2x
60 74
Bond loan 200 2013 Unsecured 0.5x 35
–
Bond loan 100 2015 Unsecured 0.3x
5
Bond loan 100 2015 Unsecured 0.3x (100)
Commercial paper and other2 124 2015 Unsecured 0.3x 1
(329)
Total debt 693 1.8x
(200)
Net debt 364 0.9x

LTM EBITDA 385 (300)

Total debt / EBITDA 1.8x
Net debt / EBITDA 0.9x (400) 2
2013 2014 2015 2016 >2016
Debt Cash
1 Cash balance as of 31 December 2012 (excluding Treasury shares). 1 Cash balance as of 31 December 2012 (excluding Treasury shares).
2 Includes overdraft (€0.4m) + unrecognized issue costs (€1m). 2 Remaining balance of bank and bond loans.
3 Date represents final year of maturity.
4 Bank loans are amortized proportionately over remaining years.
5 €40m maturing in 2014.

Conservative financial profile. Dependent on Portuguese banks

April 2013 22

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