SKGPresentationUBSConferenceSep2007

Smurfit Kappa Group | Delivering to Plan

7ald1043_Screenshow.pptSmurfit Kappa Group | Delivering to Plan

Key Investment Highlights

Focused market leader

Improving industry with robust outlook

Proven management team

Transformed business


IPO MilestonesObjectives Set

Expected FY ’07 EBITDA outcome

Industry leading EBITDA Margins

Defined Synergy Benefits

Increased target of €180 million

Debt Paydown

Net debt EBITDA in 3.25x to 4.25x range


Smurfit Kappa GroupRe-positioned as a focused, industry leader

Ongoing business transformation

Shar

ehol

der v

alue

Medium-term growth drivers

• Sharpened business and product focus • €1bn of divestments and €0.5bn of acquisitions• Simplified corporate structure

• Created European market leader • Improved asset base• Synergy momentum

• Significant FCF generation• Accelerating debt pay-down• Increasing exposure to

higher growth markets

Time

2002-05:

2005-06:

2007-8:

today


Focused European Industry LeaderEuropean Containerboard

Recycled containerboard

Balanced market in recycled containerboard

Rising recovered fibre costs +22% year-on-year

Inventories tight and product price momentum

KraftlinerMarket conditions generally good

- but rising input costs

White-top market strengthening

US imports major factor in H1 performance

Volumesm tonnes H1 ‘06 H1 ‘07 Change

Recycled 1,553 1,612 +3.8%

Volumes down 4% including closed facilities

Kraftliner 793 714 (10%)

Includes Facture impact

SKG Containerboard Volumes


Focused European Industry LeaderEuropean Corrugated

Market leader in Europe

Good demand growth

Corrugated prices increasing

Short-term margin compression

Improved pricing in H2 and into 2008

113.6

100

103.6

112.4108.7

100

104

108

112

116

Dec '05 Jun '06 Dec '06 Jun '07 Jul '07

Volumesm sq metres H1 ‘06 H1 ‘07 Change

Corrugated 4,210 4,264 +1.3%

Excludes closed & sold operations

SKG Corrugated Pricing

Note – Point to point movements


Solidboard & BoxboardBoxboard improving

Rising input costs – all grades

Competitive market conditions

Closures & rationalisation

Sacks & Sack kraftStrong pricing momentum in paper

Difficult market in converting

Bag-in-BoxContinued growth in bags and taps


Solidboard 402 367 (8.7%)

Boxboard 145 154 +6.2%

Sackpaper 64 63 (1.6%)

Bag-in-Box Bags 52 65 +25%

SKG Specialties Volumes

Focused European Industry LeaderSpecialties


Leader in Latin America High growth markets

Strong market positions - high growth markets

Portfolio of businesses and markets

Sustained EBITDA contribution

Key component of SKG’s business model

Ongoing investments in region

67

93 97112

123

H1 '03 H1 '04 H1 '05 H1 '06 H1 '07

Latin American H1 EBITDA (US$m)


Containerboard 336 359 +6.8%

Corrugated 390 418 +7.2%

SKG H1 Volumes

Colombia (#1)

Mexico (#2)

Venezuela (#1)

Dom RepChile

Argentina

Sales by Country


Integrated, demand-driven businessMarket Led

Fully integrated

Market led

Demand driven

Earnings qualitySmurfit Kappa Group | A Box Business


181

219229

254 254 260

10.4%

12.5%13.2%

14.5% 14.2% 14.2%

Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07

EBITDA Progression…despite significant cost increases

Quarterly EBITDA and Margin Progression (€m)


EBITDA ProgressionIndustry leading EBITDA Margins

Note: Quarterly data for Smurfit Kappa and SCA; half yearly data for Mondi GroupSource: Company data, SCA 2007 H1 Report, Mondi Group 2007 H1 Report

Comparative EBITDA Margins

12.4%12.2%

13.2%

14.5%14.2% 14.2%

12.1%11.9%

10.8%

10.2%10.4%

12.5%12.2%

13.7%

13.3%

9%

11%

13%

15%

Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07

SCA Packaging Smurfit Kappa Mondi Packaging


Financial disciplinesFocus on Cash

Free cash flow generation

Disciplined working capital management

Judicious capital spend

Low cash taxes

Combined public and private equity disciplines


Synergy ProgrammeAhead of Plan

Synergy Run Rate (€m)

95

180

146

124

0

25

50

75

100

125

150

175

200

2006 Target 2006 Run Rate 2007 Run Rate Revised TargetAs at June, 2007 Original Target €160m


Capital Structure & Debt PaydownDelivering to Plan

€m Net debt to EBITDA

Net debt at December 31, 2006 (4,882) 5.5x

Free cash flow (37)

IPO proceeds 1,495

IPO costs (58)

Refinancing costs (74)

Other (49)

Net debt at June 30, 2007 (3,605) 3.6x

Net debt to total capitalisation 63%

EBITDA to net interest 3.4x


0

250

500

750

1,000

1,250

1,500

1,750

Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17

1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr +

Well structured debt portfolio

High cost debt repaid

Cost of existing debt reduced c. €50 million over the facility’s life

No material near term maturities

Flexible covenant structure

SKG Debt Maturity Profile

€ m

Capital Structure & Debt PaydownDelivering to Plan


2007 H1 | SummaryDelivering to plan | IPO Milestones

Strong H1 performance – expected FY ’07 EBITDA outcome

Industry leading EBITDA margins

Sustained synergy progress

Continuing focus on debt paydown

€m Increase Y-on-Y

Revenue 3,625 +4%

Pre-Exceptional EBITDA 514 +28%

EBITDA margin 14.2% +2.7pts


European Industry Outlook- Industry Firsts

Creation of clear market leader

Unprecedented and broad-based capacity rationalisation

Step change to price psychology

Product prices and input costs reversing seasonal norms

Increasing barriers to entry


Robust Industry FundamentalsDemand growth – Market in balance

2.6%2.3%

3.4%

1.9%

0%

1%

2%

3%

4%

2007E 2008E 2009E 2010E

Con

tain

erbo

ard

dem

and

grow

th

European demand growthExpected demand growth of 10.2% to 2010

Capacity announced from ‘10 onwards

Prowell 650Mondi 470Hamburger 450

Total 1,570

Emerging supply side discipline

Capacity Discipline | ‘05 to ‘07

1.6m tonnes addition2.0m tonnes closures

Source: RISI


SKG OutlookDelivering to Plan

Strong demand growth

Balanced capacity

Rising input costs

Positioned to deliver

continued EBITDA growth


Key investment highlights

Focused market leader

Improving industry with robust outlook

Proven management team

Transformed business

Smurfit Kappa Group | Delivering to Plan

SKGPresentationUBSConferenceSep2007

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