Group presentation

1

• Group presentation

2
Welcome to Moelven Industrier

• About Moelven
• Financial information
• History

• The Divisions
• Personnel
• The Environment

3
Moelven Vision
Moelven shall be market leader for wood based
building products and accompanying services in
Norway, Sweden and Denmark
4
Moelven Values

• A focus on results
• Willingness to take on responsibility
• Respect for your colleagues
• Honesty and openness

5
Moelven Strategy

• Focus on Scandinavia
• Increased focus on processed wood building
  products
• Focus on distribution and customer needs

6
Moelven Strategy
Strategic corner stones Focus on Scancinavia and distribution Sawmills concentrated geografically Internal value adding
Competitive advantages Decentralized structure Utilization of complete value chain to the benefit of our customers Management team competence Control systems
Critical success factors Ability to maintain result driven structure Relationship to owners Customer satisfaction HR competence and succession process
7
Moelven End user orientation
Packaging sector
Building with wood
Frame structuresFloor bearing constructionPartit
ionsCladdingRoof structures
Windows Doors Beams Wall elements
Living with wood
Floors Walls Ceilings Furniture Cabinets Stairs G
arden
Transport sector
8
Moelven Facts about the Group

• Founded 1899
• Norways largest wood mechanical group
• 47 operational units
• 3 250 employees
• Production in Norway and Sweden
• Operating revenues NOK 4 800 mill (2003)
• Operating profit NOK 100,6 mill (2003)
• Two business areas
  
  - Timber Group, three divisions Timber,
  Wood and Laminated Timber
• - Building Group, two divisions Modular
  Buildings and Modular
  System Interiors

9
Moelven Location
10
Moelven Location and geographical focus

• The exixting shareholder agreement states that
  Moelven will remain an independent daughter
  company within the strategy of Finnforest.
• This means
• Geographical focus - Scandinavia
• The Moelven brand
• production focus
• market focus

11
Moelven Owners
Total number of shares 23.02.04 129 542 384
Shares in
Shareholders
14,2
51,0
17,8
9,4
4,5
3,0
12
Moelven Organisation

Moelven Industrier ASA
CEOBo B. Borgström
Moelven Timber Group
Moelven Building Group
Timber sawmills Mgnt. Dir. Anders L.
Fossum
Wood processing Mgnt. Dir. Dag E. Sand
Laminated Timber Mgnt. Dir. Åge Holmestad
Modular Buildings Mgnt. Dir. Reidar Mo
Modular Syst. Int. Mgnt. Dir. Reidar Mo
13
Moelven Divisions
Moelven Timber Group
Moelven Building Group
Timber - sawmills
Modular Syst. Int.
Laminated Timber
Modular buildings
Wood - processing

• Rev. NOK 2 398 mill
• Employees 1 214
• Prod. Sawn goods and
• by-products for wood
• Companies 20

Rev. NOK 580 mill Employees 519 Prod.
Interior solutions for commercial
buildings Companies 3
Rev. NOK 386 mill Employees 251 Prod. Load
bearing building components Companies 3
Rev. NOK 763 mill Employees 631 Prod.
Commercial and non-comm. buildings and
installations Companies 8
Rev. NOK 1 363 mill Employees 600 Prod.
Processed goods for external and
internal building purposes Companies 13
Numbers for 2003
14
Moelven Organisation
Moelven Industrier ASA
Timber sawmills
Wood processing Lam. Timber
Mod.Build. Mod. Syst.Int.
Moelven Dalaträ AB
Moelven Ransbysågen AB
Moelven Are AS
Moelven Wood AS
Moelven Limtre AS (95,6) avd. Moelv, avd.
Agder, avd. Splitkon
Moelven ByggModul AS
Nordia AS
Moelven (51) Telemarksbruket AS
Moelven Notnäs AB
Moelven Component AB
Moelven Wood AB
Moelven ByggModul Säffle AB
Nordia Enterprise AS
Moelven Våler AS
Moelven Van Severen AS
Moelven Danmark A/S
Moelven Langmoen AS
Moelven Töreboda AB (95,6)
Moelven ByggModul Kil AB
Eurowand AB
Moelven Østerdalsbruket AS
Moelven Nössemark Trä AB
Moelven FireGuard AS
Moelven Eidsvoll AS
Moelven Lam.Timber Structures Ltd. (92,5)
Moelven ByggModul Torsby AB
Moelven Norsälven AB
Moelven Mjøsbruket AS
Moelven Notnäs Wood AB
Moelven Valåsen Wood AB
Moelven ByggModul Sandsjøfors AB
Moelven Våler AS avd. Elverum
UJ-Trading AB
Moelven Treinteriør AS
Moelven List AB
Moelven Elektro AS
Moelven Värmlands Trä AB
Moelven Byggfinansiering AS
Moelven Numedal AS
Moelven Soknabruket AS
Moelven Edanesågen AB
Moelven Årjäng Såg AB
Moelven Byggfinansiering AB
Moelven Løten AS
Moelven Eidsvold Værk AS
Moelven Valåsen AB
Moelven Tom Heurlin AB
15
Moelven The Group Executive Board
Back, from left Rolv A. Amdal, Dag E. Sand, Hans
Rindal, Reidar Mo and Anders L. Fossum. Front,
from left Bo B. Borgström and Haumann Sund.
16
Moelven The Board of Directors
Back, from left Arimo Uusitalo, Jan Slattum,
Arne Rødø, Iver Melby, Antti Oksanen and Ari
Martonen Front, from left Even Mengshoel, Runar
Lilandt (Chairman) and Torstein A. Opdal
17
Moelven Mega-segments and trends

• Industry
• Consolidation, polarization and
  internationalization of the industry
• Increased purchase of blanks and components
• Consultative sales process and direct contact
• Repeat business
• Low cost

18
Moelven Mega-segments and trends

• Distribution
• Increased dominance of power retailers
• Short lead times
• Demands complete concept from suppliers, not
  just products
• Communication reaching customers customer
  required
• Traditional importers/wholesalers decrease in
  importance

19
Moelven Mega-segments and trends

• Building
• Assemblers of components and systems
• Shortage of skilled labour
• Focus on total cost efficiency
• Focus on shorter lead times
• Complex supplier-customer interface
• Turnkey supplier capability

20
Financial information

• Key financial figures
• Operating Revenues
• Operating Profit

21
Financial information Key financial figures

2003 2002
Operating revenues 4.864,1 4.618,4
Operating profit 100,6 139,4
Result before tax 64,5 99,1
Net profit 31,9 71,4
Net operating margin 2,1 3,0
Return on capital employed, 6,8 9,1
Equity ratio, 39,1 42,9
Employees 2853 3120

NOK mill.
22
Financial information Operating revenues
For each division in 2003, in NOK million
23
Financial information Operating revenues
For each business area, 1997 2003, in NOK
million
24
Financial information Operating profit
For each division in 2003, in NOK million
25
Financial information Operating profit
For each business area, 1997 2003, in NOK
million
26
History

• Important events

27
History Important events

• 1899
• The limited company of Moelven Brug was founded.
• The wheel boiled in oil was the main basis of
  the industrial production.
• 1950
• A type of transportable forest cabin and rest
  barrack, Moelven House on Wheels, was
  developed.
• 1959/60
• The laminated timber factory at Moelv started
  production.
• 1972/1976
• New factories for production of components to the
  housing industry are built.
• The oil adventure gives Moelven large
  deliveries.
• 1982
• Moelven takes over the majority of shares in
  Töreboda Limträ AB.

28
History Important events

• 1985
• Moelven aquires Dalaträ AB in Sweden (sawmill).
• 1990/92
• The recession in the Norwegian housing market
  results in the stopping of house production,
  which is the Groups largest area of business.
• The Group undergoes a major reorganisation and is
  refinanced.
• 1994/96
• Deliveries to the Olympic halls Viking Ship,
  Håkons Hall and Northern Lights Hall for the
  1994 Winter Olympic Games. Load bearing
  constructions for the terminal
  building at Gardermoen delivered in laminated
  timber.
• 1998/2000
• The aquisition of Westwood Group in Sweden and
  Forestia in Norway.

29
History Important events

• 2001
• New owners Finnforest 59,1 , Norwegian and
  Swedish forestry owners 37,6.
• 2002
• Delisted from the Oslo Stock Exchange.
• Runar Lillandt new chairman. Bo B. Borgström new
  CEO.
• New shareholders agreement Metsäliitto Group
  16,3, Finnforest Corp. 60,9 , Glommen Fond AS
  14,8 and Mjøsen Skogeierforening 7,5 .
• 2004
• Acquisitions of Are and Mobilarum
• Finnforest Corporation, its subsidiary company
  Metsäliitto Group and Moelven Industrier ASA sell
  some of their Moelven stocks to four Norwegian
  forest owner associations.
• New distribution of stocks after the sale
  Finnforest Corporation 51,0 , Glommen Fond 17,8
  , Metsäliitto Group 14,2 , Mjøsen
  Skogeierforening 9,4 , Agder-Telemark
  Skogeierforening (AT-Skog) 4,5 ,
  Haldenvassdragets Skogeierforening (Havass) 3,0
  

30
Prognosis, raw material supply, Norway
31
Prognosis, raw material supply, Sweden
32
Outlook

• Stable market for extensions, renovations and
  remodelling of houses
• The non-residental construction market in
  Scandinavia is expected
  to remain relatively slow
• Oil and gas field developments will provide
  opportunities for
  the modular building business
• Prices for industrial pine and spruce timber are
  expected to remain stable
• Continued deterioration in the raw material
  situation for
  the Norwegian sawmill
  industry

33
The Divisions

• The value chain
• Timber - Sawmills
• Wood - Processing

• Laminated Timber
• Modular Buildings
• Modular System Interiors

34
The value chain
35
Timber - Sawmills
Moelvens business concept is to generate as
high value as possible from each individual log
all based on the renewable raw material
represented by the forest.
Craning timber at one of Timbers sawmills
36
Timber Sawmills Organisation
Mgnt. Dir. Anders L. Fossum


Revenues NOK 2 398 mill Employees 1
214 Products Sawn goods and by-products for
wood Companies 20
Moelven Dalaträ AB
Moelven Norsälven AB
Moelven Ransbysågen AB
Moelven Mjøsbruket AS
Moelven Løten AS
Moelven Telemarksbruket AS (51)
Moelven Våler AS, avd. Elverum
Moelven Notnäs AB
UJ-Trading AB
Moelven Valåsen AB
Moelven Våler AS
Moelven Numedal AS
Moelven Van Severen AS
Moelven Soknabruket AS
Moelven Eidsvold Værk AS
Moelven Nössemark Trä AB
Moelven Årjäng Såg AB
Moelven Tom Heurlin AB
Moelven Østerdalsbruket AS
Moelven Edanesågen AB
37
Timber - Sawmills Location
38
Timber Sawmills Products
39
Wood - Processing
Focus on customer centres and efficient
distribution to the nation-wide chains of
builders merchants are two of the key points
for Woods operation.
Moelven Wood has a wide-ranging
assortment of processed wood products
40
Wood Processing Organisation
Mgnt. Dir. Dag E. Sand


Revenues NOK 1 363 mill Employees 600 Products
Processed goods for external and internal
building purposes Companies 13
Moelven Wood AS Kundesenter Norge
Moelven Wood AB Kundesenter Sverige
Moelven Danmark A/S Kundesenter Danmark
Moelven Eidsvoll AS
Moelven List AB
Moelven Treinteriør AS
Moelven FireGuard AS
Moelven Component AB
Moelven Notnäs Wood AB
Moelven Are AS
Moelven Valåsen AB
Moelven Langmoen AS
Moelven Värmlands Trä AB
41
Wood - Processing Location
42
Wood Processing Products
43
Laminated Timber
In combination with other building materials
such as steel, concrete and glass, laminated
timber has for many years opened up for greater
architectonic freedom.
Laminated timber products may be customised
to each customers needs and desires
44
Laminated Timber Organisation
Mgnt. Dir. Åge Holmestad


Revenues NOK 386 mill Employees 251 Products
Load bearing building components Companies 3
45
Laminated Timber Location
46
Laminated Timber Products
47
Modular Buildings
Indoor production and modules ready-made for
installation offer major benefits compared to
traditional on site construction. Modular build-
ings are increasingly being favoured by builders.
A large order of temporary barracks was supplied
by Moelven Modular Buildings for the Snøhvit gas
field project at Melkøya, outside of Hammerfest,
Norway.
48
Modular Buildings Organisation
Mgnt. Dir. Reidar Mo


Revenues NOK 763 mill Employees 631 Products
Commercial and non-comm. buildings and
installations. Companies 8
Moelven ByggModul AS
Moelven ByggModul Kil AB
Moelven ByggModul Sandsjøfors AB
Moelven ByggModul Torsby AB
Moelven Elektro AS
Moelven Byggfinansiering AS
Moelven Byggfinansiering AB
Moelven ByggModul Säffle AB
49
Modular Buildings Location
50
Modular Buildings Products
51
Modular System Interiors
Modular interiors is a concept that is well
adapted to the increasing demand for fast
deliveries and a high degree of
flexibility.
Flexible office interiors from Nordia, Norway
and Eurowand, Sweden
52
Modular System Interiors Organisation
Mgnt. Dir. Reidar Mo


Revenues NOK 580 mill Employees 519 Products
Interior sollutions for commercial
buildings Companies 3
Nordia AS
Nordia Enterprise AS
Eurowand AB
53
Modular System Interiors Location
54
Modular System Interiors Products
55
Personnel
Moelven operates in an internationally
competitive environment and depends on a flexible
organization with talented, motivated and
effective staff members.
Mikael Axelsson, Moelven List AB
56
Personnel

• A flexible organisation
• Moelven is operating in a highly competitive
  industry
• Expertise, motivation and effeciency comparable
  to international benchmarks
• Focus on continous improvements and long-term
  profitability
• Businees culture and values
• Target-oriented business culture
• The culture and the values primarily reside
  
  in the
  employees

Else Brækkan, Moelven Våler AS
57
Personnel Development programs

• The Moelven School
• Runs over a period of two years. For the
  operators in the groups industrial operations
• Provides credits towards the higher education
  system
• Development Programme for Mid-level Managers
• For foremen, employee representatives, department
  managers, buyers and administrative personnel
• Provide an opportunity to work directly and
  concretely with personal development
• Trainee Programme
• Recrouting of young people with higher education
  to the regions companies
• The Moelven Group has employed a number of
  trainees after their completion of the programme
• Management Development Programme
• Mjøskompetanse development programme for the
  Groups managers
• Contribute in increasing their ability to achieve
  results in collaboration with others
• About 200 of the Groups Scandinavian managers
  and mid-level managers have participated

58
Environment
Moelvens products are based mainly on renewable
pine and spruce timber from forests in Norway and
Sweden. This yields tremenous benefits for the
environment.
Source sorting is an important environment
measure, as here at Nordia AS in Jessheim,
Norway
59
Environment Health, work environment and safety

• Strong focus on Health, Work environment
  and Safety (HES)
• Continous preventive and attitude.raising
  campaigns
• Mandatory HES training programme for all of
  the Groups managers
• The absence due to illness was 7,1 in 2003
  (of 2 737 man-years)
• Company rewards for companies with low
  absenteeism and positive operating margins
• HES Handbook adapted to the existing
  conditions at each individual local company
• Risk analyses and preventive campaigns at
  each individual local company

Exercise is important for a persons
physical and mental health.
The exercise group at Moelven in action
60
Environment Environmental impact

• All sawmills are PEFC certified
• At least 79 of the timber has been supplied by
  certified suppliers
• Environmentally sound materials
• 1 cu.m. laminated timber 470 kg wood and 6 kg
  glue
• Burning bark and chips in biomass plants
• Return agreements for waste oil and chemicals
• Recycling and climate controls to counteract
  algae growth from drainage water
• Noise and dust Special measures, especially
  for facilities close to populated areas
• Source sorting of plastic, metal and packaging

Timber is a pure, natural product
61
Environment Environmental impact

• Timber is a natural, renewable resource focus
  on recycling
• Moelven has developed alternative products to CCA
  impregnated timber without negative environmental
  impact
• Packaging, annual consumption about 600 tons
  90 of the packaging are recycled foil, the
  remaining is paper-based

The energy potential from 1 cu.m. timber
corresponds to one month of consumption

for one household with an annual consumption of
20 000kWh