Press release

Velsen, 16 May 2013 (before market opening) EXPECTED BENEFITS FROM RENEWED MARKET FOCUS HAMPERED BY ECONOMIC SLUMP IN EUROPE


RESULTS AFFECTED BY HIGH PULP PRICES, INCREASED ENERGY COSTS AND SCHEDULED POWER PLANT MAINTENANCE STOP CVG EXPECTS LOSS IN 2013

Today, at the Annual General Meeting of shareholders Miklas Dronkers, CEO, will present the following trading update on recent market developments and the outlook for 2013.

Operating review

Market developments



As from the beginning of this year CVG s sales organisation has been restructured to strengthen the commercial focus and enhance the company s business profile as a supplier of quality products in differentiated niche markets. Commercial focus is especially directed at three target areas: digital inkjet, label and packaging, with better margins and good growth perspectives. CVG has presented these changes as part of its FOCUS 2016 strategy. The company has been successful in the development of new products and CVG showed strong underlying growth in 2012 despite difficult market conditions.

In the first four months of 2013, CVG s market performance was heavily impacted by the slump in the European economy and its overall impact on the European paper market. Market confidence is extremely low and the order volume in the European market for woodfree uncoated paper on reels showed a steady decrease of 7% compared with the same period last year, following an already strong decrease in 2012.

Despite the negative market sentiment CVG s production capacity could be fully utilised. The product mix in the first months of 2013 was clearly below CVG s ambition levels, with higher export sales outside Europe at traditionally lower prices and lower than expected growth in focus product sales, adversely impacting results early 2013.
Crown Digital shows the strongest growth among the focus products. The digital product range has been developed for high volume colour inkjet printers. Inkjet printing is applied as printing technology for transactional applications and mailings and also publishers show strong interest in book printing with inkjet technology. Our customer base is steadily expanding and we are in close collaboration with companies such as HP, Canon, Screen, Xerox and Ricoh. On top of that, CVG is actively searching for cooperation with supply chain partners among publishers and retailers.

Raw material and energy costs


Developments in commodity and energy markets are influenced by a more positive economic outlook in other parts of the world, especially North America and China. Pulp is the most important raw material for CVG s papers and also the largest input cost in the paper making process. Pulp prices have remained at high levels, on the back of solid demand from Asia and a

1-3



Press release

delay in the introduction of substantial new pulp production capacity on the market. Pulp suppliers have announced further pulp price increases for the coming months. As from the second half of 2013 downward pressure on pulp prices is expected as new pulp production comes on stream in South America.
At the end of 2012, energy contracts with prices well below market price levels came to a conclusion. As announced last February, as from January 2013, CVG is confronted with market prices for natural gas which are around 25% higher than 2012 prices. For the time being, the company has decided to keep gas prices floating in anticipation of possibly lower market prices for gas in the future, given the current economic situation in Europe. Until now, gas prices have barely come down since early 2013.
CVG is obliged to take part in the European Trading System (EU ETS) for emission allowances. For the new ETS plan, running until 2020, as from 2013 CVG has to buy around 80,000 ton of emission allowances on the market, annually. The prospects for the long term viability of the CO2 trading system are uncertain and recent attempts to reduce supply of emission allowances by the European Commission have failed. As a consequence prices for emission allowance made a dive to new lows. For CVG this would probably result in lower emission costs than anticipated earlier.
On balance, raw material and energy costs are markedly higher in the first half of 2013. Selling price increases are actively sought for, to compensate for the higher costs levels.

Capital expenditure

In April 2013 the latter part of the periodic revamp of the power plant was concluded successfully. The related downtime of around one week has been used to execute the necessary major maintenance activities for 2013.
In 2013 capital expenditure is expected to be around EUR 9 million, among others a major part of full expenditure of the periodic revamp, including expenditure for investment activities executed late 2012. Capital expenditure can be financed through available credit lines.

Outlook 2013

Financial results in the first half of 2013 are affected by high pulp prices, increased energy costs and costs of the scheduled maintenance stop. Expected benefits from the renewed market
focus are hampered by the economic slump in Europe, which weighs heavily on market confidence. Despite these developments, CVG expects full production capacity utilisation during the first half of 2013. Based on current insights, CVG forecasts a net loss over the first half of
2013 of around EUR 4 million (excluding non-recurring items).
In the last few years, economic activity in the European paper market has turned out to be extremely volatile, with quarters with weak performance followed by stronger ones. This makes it difficult to give an outlook for the second half of 2013. The development of results in the second half of 2013 is subject to the magnitude of the sales increase in focus products, the European economic outlook and its impact on paper demand, pulp, gas and selling price developments and the development of exchange rates. All these factors are yet hard to predict.

2-3



Press release

Therefore, CVG is not in the position to provide a precise outlook for the full year 2013, but expects the year to be loss-making.
Crown Van Gelder will publish the 2013 half year results on 26 July 2013 (before market opening).

For more information, please contact:

Henk van der Zwaag, CFO, tel. + 31 (0)251 262 201.
Internet site: www.cvg.nl

Profile:

Crown Van Gelder N.V. is a specialist paper manufacturer with around 280 staff. The company develops, produces and sells high-quality speciality products in the woodfree uncoated and single-coated paper sectors. The product portfolio includes customised solutions for self- adhesive labels and base paper grades that are coated, metallised or provided with a (polyethylene) PE coating, and paper products suited as packaging materials for use in combination with foodstuffs, and a series of speciality paper products designed to print forms, direct mail, envelopes, books, and manuals. Crown Van Gelder N.V. is listed on NYSE Euronext Amsterdam.

3-3

distributed by