Czech Market

1
Czech Market

• The Association of Corrugated Board Manufacturers

2
Content

• The Association of Corrugated Board Manufacturers
  (SVVL)
• SVVL members
• SVVL activities
• Overview of the Czech market
• Industry GDP growth, inflation
• Unemployement, wage increase
• Summary

3
The Association of Corrugated Board Manufacturers

• Collective members
• Bupak
• Model
• SCA
• Smurfit Kappa
• THIMM
• Individual member
• Solpap

4
The Association of Corrugated Board Manufacturers
5
Duropack / Bupak

• Number of plants 1 corrugated, 1 paper mill
• Product portfolio corrugated packaging, paper
  production
• Number of employees 325

6
Model

• Number of plants 3 corrugated, 1 laminated (2
  folding boxes)
• Product portfolio corrugated, laminated and
  cardboard packaging
• Number of employees 1200 (incl. cardboard)

7
SCA Packaging

• Number of plants 9
• Product portfolio corrugated, laminated and
  temparature controlled packaging (EPU),
  cushioning (EPS/EPE/Arcel), display and
  printing
• Number of employees 800

8
Smurfit Kappa

• Number of plants 3 corrugated, 1 laminated, 1
  paper mill
• Product portfolio corrugated and laminated
  packaging, paper production
• Number of employees 425 (corrugated only)

9
THIMM Packaging

• Number of plants 1
• Product portfolio corrugated packaging
• Number of employees 154

10
SVVL activities

• Legislation
• Packaging Code
• Country waste handling plan
• REACH
• Footprint
• Environment
• Information for public about related enviromental
  issues
• Advantages of corrugated board in comp. to other
  packaging
• Marketing
• Presentation popularization of Corrugated board
• Various contests at schools

11
The Czech Republic estimated shipment

• 07 shipment export
• SVVL members 619 Mm2 24
• Independent 304 Mm2
• Total market shipment 923 Mm2
• SVVL-member capacity on 2-shift pattern 850 Mm2
• SVVL-member capacity utilisation 73

12
The Czech Republic - Macroeconomics
13
The Czech Republic
14
The Czech Republic
15
GDP growth
16
GDP per capita to EU-27 average in
Country 2007
17
The Czech Republic GDP development

• 90
• 333 000
• 175 000
• GDP per capita
• (in CZK)

18
The Czech Republic Summary I.

• Long-term stable enomomic and democratic
  environment, member of EU, presidency of EU in
  1H2009
• Nonperformance of convergent criterias (budget
  deficit), acceptance of Euro expected in 2013
• Continuation in boom of pro-export oriented
  economy but short-term braking of dynamic growth
  (GDP Industry growth) in the next two years in
  comparison to 2007
• 1Q2008 GDP growth 5.4, slight slow-down but
  still very solid, caused by a weaker foreign
  trade influenced by strong CZK
• Direct influence of a slow-down in EURO zone
• Forecast for GDP growth in 2008 4.5 - 5 (6.5
  in 2007)
• Foreign investment flow to CZ is slightly
  weakening

19
The Czech Republic Summary II.

• Strong consumption demand in 2007, low
  unemployment and high wage increase in 2007, high
  inflation, very strong CZK, industrial production
  slow-down
• Czech economy trends
• Slow-down in textile, food, beverages and tobacco
  industries
• Move electrical and optical industries
• Expected inflation at the 2008 year-end 5,
  current level at 7
• Czech currency at the level of CZK 25 to EURO 1,
  weakening expected during the year
• Low unemployement level (April 2008 5.2)