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Investor presentation August 2010

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Contents

1. Ahlstrom in brief

2. Business review

3. Raw materials & costs

4. Revised strategic direction

5. New operating model

6. Investor information

7. Latest financial report: January-June 2010

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1. Ahlstrom in brief

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Ahlstrom in brief

• A leading supplier of high performance nonwovens and specialty papers

• 5,800 employees in over 20 countries on six continents

• Business areas• Building and Energy• Filtration• Food and Medical • Home and Personal• Label and Processing

• Listed on the NASDAQ OMX Helsinki since 2006

• Net sales EUR 1.6 billion in 2009

New picture

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Ahlstrom 1851–2010

1851 Ahlstrom’s business started with sale of paper followed by timber trading and growing shipping and sawmill operations.

1931 Ahlstrom Group was Finland’s largest industrial enterprise, with more than 30 manufacturing units and over 5,000 employees.

1963 Ahlstrom acquired paper producer Cartiere Giacomo Bosso S.p.A. in Italy, which made Ahlstrom a pioneer in industrial production outside Finland.

1980s Move from commodity papers to specialty papers1990s–2000s

Strengthened focus on nonwovens through the acquisition of the French Sibille-Dalle (1996) and Dexter Corporation’s nonwoven fabrics production (2000)

• Glass nonwovens, such as glassfibre tissue and specialty reinforcements, have been produced in Karhula, Finland, since 1970’s.

2010 Ahlstrom is a leading supplier of fiber-based materials, with 39 manufacturing units and 5,800 employees on six continents.

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Communication, Compensation & Benefits, Perf. Mgmt and Competence Dev., Sustainability, HSEA

Sales, Product & Brand Mgmt, Demand Planning

Organization as of July 1, 2010

Operations, Operations Planning, Sourcing, Logistics, Investments, continuous improvement (aPlus)

President & CEO

Jan Lång

EVP, Supply Chain

NN

EVP, HR & SustainabilityPaula Aarnio

EVP, Sales & Marketing

Rami Raulas

Deputy CEORisto Anttonen

CFOSeppo Parvi

EVP, Label and Processing

Patrick Jeambar

EVP, Building and Energy Laura Raitio

EVP, Food and Medical

Bill Casey

EVP,Filtration

Tommi Björnman

EVP, Product & Technology

DevelopmentClaudio Ermondi

EVP, Home and Personal

Jean-Marie Becker

Controlling, Treasury, IT, Legal services

Research & development of products and technology

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Ahlstrom´s business areas as from July 1, 2010

Label and ProcessingSelf-adhesive labels, wet-glue labels and metalized labels for beverages, food and non-food packaging, pharmaceuticals and cosmetics, poster papers, repositionable notes, furniture foils, gaskets, heat shields, abrasive papers, sound absorption materials…

FiltrationAutomotive and transportation filtration, food and beverage filtration, water filtration, air filters, laboratory filtration

Building and EnergyWind turbine blades, floorings, wall coverings, boat hulls, building panels,

fabric care

Home and PersonalWipes for baby care, personal care and home care, industrial wipes

Food and MedicalMedical gowns, drapes and face masks, teabags, fibrous meat casings, baking papers

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Food and Medical

Competitors include:

DuPont, Glatfelter, PGI

Medical fabrics• Surgical drapes and gowns

• Facemasks

• Sterile Barrier Systems (SBS)

Food Nonwovens• Infusion materials for heat

sealable, non-heat sealable & ultrasonic teabags and coffee pods.

• Food applications: absorbent food tray pads, fibrous meat casing reinforcement, fish and cheese wraps etc.

• Baking papers

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Filtration

Competitors include:

Andrew Industries, H&V (Hollingsworth Vose), Neenah Paper

Transportation Filtration• Fuel• Air• Lube• Cabin air• Transmission

Dust Filtration• HVAC• Dust control• Power generation• Activated carbon• Household

products

Advanced Filtration• Process• Water• Food & beverage• Life sciences• Membrane• Absorbent & blotting

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Home and Personal

Baby wipes

Homecare wipes

• Baby• Toddler

• Anti Bacterial• Disinfecting• Floor Care• Furniture• General Purpose• Glass

Industrial wipes

Personal care wipes

• Aerospace• Auto• Cleanroom• Food Service• Hard surface

• Adult incontinence• Disinfecting• Exfoliating• Facial• Fem Care• Moist Toilet Tissue

Competitors include: Jacob Holm, Kimberly-Clark, PGI

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Graphics & Packaging: uncoated, coated, calendered papers for food, non-food packaging and labeling applications as well as for graphic applications.

Processing: base papers for posters, abrasive and furniture foils.

Release & Label Papers: release base papers and face stock label papers for the self-adhesive labeling industry.

Sealing & Shielding: engineered materials such as heat shield and gasket materials, press pads for printed circuit board or decorative laminates as well as calender bowls materials.

Competitors include: Cham Paper, Delfort, UPM, Arjowiggins, M-real, Sappi

Label and Processing

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Building and Energy

Competitors include:Owens Corning Vetrotex, Saertex, Fortress Paper

Carriers for vinyl floorings, surface tissues for laminates and building panels, wall coverings and in bituminous roofing, as well as in automotive interiors

Specialties and Wallcover

Composites: Building and Flooring

Industrial applications with a particular focus on wallcoverings in the building industry. Other applications include nonwoven materials used for fabric care, decoration, graphics, automotive interiors, apparel, catering and luxury packaging

Composites: Marine and Wind

The basic material for Ahlstrom's marine and wind product range is E-glass. Applications include also sports and transport, anticorrosion, tanks and pipes, construction & infrastructure as well as electrical and industrial applications

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Leading supplier of fiber-based materials

Business area:

Building and Energy

Filtration

Food and Medical

Home and Personal

Label and Processing

Market position*

1–3**

1–3

1**

1

1–5

*Management estimate ** In selected market segments

1-3**

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• Other roll goods producers

Raw material supplier

• Pulp producers• Synthetic fiber producers (PET, PP, glass)• Chemical suppliers

Converter

• Healthcare and consumer goods suppliers • Transportation industry suppliers• Air and liquid filter manufacturers • Packaging industry• Printers and siliconizers: label, decor, poster, wallcover

Marketer/ seller•World class consumer or industrial brands Consumers

& Industrial customers

Primary production• Natural fibers: wood, cotton, hemp•Oil and petrochemicals

Ahlstrom in the value chain

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Global manufacturing presence & markets

Sales officesPlants

Europe, EUR 494.4 million (53%)

North America, EUR 221.8 million (24%)

Asia-Pacific EUR 90.1 million (10%)Rest of the world, EUR 20.1 million (2%)

Net sales 1H/2010

South America, EUR 104.0 million (11%)

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Recent innovations

• In 2009, 48% of Ahlstrom´s net sales were generated by new or improved products

• Bi-component nonwoven material for medical applications

• Stronger than comparable fabrics• Suitable for sterilization by means of radiation

• Hybrid wallcovering• Combines favorable properties of nonwovens and

papers cost efficiently• Several filtration media innovations

• Match the stricter environmental criteria, e.g. in diesel oil filtration

• Dry wiping fabrics for cleaning applications in home and industrial environments

• One-side coated label paper Lumimax TT• Used e.g. in bar code stickers

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Sustainability at Ahlstrom

• For Ahlstrom, sustainability means a balance between economic, social and environmental responsibility

• In 2009, Ahlstrom was ranked among the 10 best Finnish companies in the global Carbon Disclosure Leadership index.

• All of the company's pulp suppliers were certified by the end of 2009 with regard to the chain of custody.

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2. Business segment review

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Release & Label Papers

Self-adhesive labels for beverages, food, pharmaceuticals and cosmetics,

wet glue labels for beverage bottles and food cans

Technical PapersMetalized beverage labels, food and non-food packaging, baking papers,

wallpapers, poster papers, repositionable notes, masking tape, sterile barrier systems, decorative laminates, textile tubes, gaskets,

heat shields, abrasive papers, sound absorption materials

Business A

reas

Business A

reasAhlstrom business segments until June 30, 2010

Specialty Papers Segment2009 net sales: EUR 743.8 million (46%)

Filtration Automotive and transportation filtration,

food and beverage filtration, water filtration, air filters, laboratory filtration

Advanced NonwovensMedical gowns, drapes and face masks,

teabags, fibrous meat casings*

Glass & Industrial Nonwovens Wind turbine blades, floorings, wallcovers,

boat hulls, building panels, fabric care

Fiber Composites Segment2009 net sales: EUR 861.2 million (54%)

Home and Personal NonwovensWipes for baby care, personal care

and home care, industrial wipes

* Examples of applications

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Sales by business area & end user applications

Glass & IndustrialNonwovens Release & Label

Papers

Technical Papers

Home & PersonalNonwovens

Filtration

AdvancedNonwovens

Building

Graphics

Transportation

Healthcare and hygiene

Food and industrial packaging

Utilities

17%

15%

11%

29%

17%

11%

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Fiber Composites in 2009*

• Globally, Ahlstrom is #3 in nonwovens

• Net sales EUR 861.2 million

• EBIT EUR -18.8 million (non-recurring items of EUR -44.2 million)

• RONA -2.5%

*As of July 1, 2010, Ahlstrom has five business areas/financial reporting segments

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Specialty Papers in 2009*

• Globally, Ahlstrom is #1 in specialty papers

• Net sales EUR 743.8 million

• EBIT EUR 14,6 million (non-recurring items of EUR -7.4 million)

• RONA 3.8%

*As of July 1, 2010, Ahlstrom has five business areas/financial reporting segments

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3. Raw materials & costs

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Total costs EUR 1.46 bln (excl. NRI) in 2009

Main raw materials

• Natural fibers• Pulp (NBSK, BHKP)• Abaca

• Synthetic fibers• Polyester• Viscose rayon• Polypropylene

• Chemicals

Main sources of energy• Electricity• Natural gas

Synthetic fibers14 %

Delivery costs 4%

Chemicals 12%

Wood pulp and other natural fibers

22 %

Other costs 15 %

Wages and salaries 22%

Energy 10%

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Raw material usage

Raw materials 2009 2008

Natural fibers tons 697,000 764,000

Synthetic fibers tons 154,000 176,000

Chamicals tons 334,000 335,000

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Pulp Price USD/Ton

300

400

500

600

700

800

900

1000

Q3 04Q1 05

Q3 05Q1 06

Q3 06Q1 07

Q3 07Q1 08

Q3 08Q1 09

Q3 09Q1 10

02 July

US$ NBSK $/Ton BHKP $/Ton

Polyester & Polypropylene USD/Ton

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

Q3 04Q1 05

Q3 05Q1 06

Q3 06Q1 07

Q3 07Q1 08

Q3 08Q1 09

Q3 09Q1 10

02 July

US$Polyester US $/Ton Polypropylene US $/Ton

Raw material price evolution

Source: Foex Indexes Source: Risi

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4. Revised strategic direction From growth to profitable growth

Ahlstrom’s vision is to be the preferred global source

for fiber-based materials

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Move into Nonwovens

(Fiber Composites)

• Business expanded into nonwovens through the acquisition of the French Sibille-Dalle in 1996

Activities

Focus on Specialty Papers

• Commodity paper producing business sold in 1987 to focus on specialty papers• Major step to build a global filtration business through the acquisition of Filtration

Sciences Inc, USA in 1989

Expand position

• Consolidation of position in nonwovens and specialty papers through multiple acquisitions and organic growth

• Key acquisitions:• Dexter Corporation’s nonwoven fabrics production (2000)• Orlandi’s spunlace production and Fiberweb’s consumer wipes business (2007)• Friend Group, manufacturer of vegetable parchment (2008)

• EUR 500 million invested in growth since IPO in 2006

1980s

1990s

2000s

From paper-making business to nonwovens and specialty papers company

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Key strategic challenges for Ahlstrom

Business portfolio complexity

Improve operational execution

Focus on profitable growth in high-potential areas

• Higher growth rates• Better margins• Stronger competitive position

• Customer industries• Products and applications• Technologies• Organization and business management

• Operational excellence• Innovation processes• Sales and marketing• Supply chain management

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Strategy statement

Ahlstrom offers price competitive and value-added fiber-based materials to create sustainable and profitable relationships with our customers

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Value-added businessesCrepe papers

Food nonwovens

Glassfiber tissue

Industrial nonwovens

Liquid filtration

Medical nonwovens

Specialty reinforcements

Transportation filtration

Vegetable parchment

Grow and expand– be different• Offer value-added products at competitive prices

• Innovate for product performance and improved conversion process

• Organic growth and possibly small acquisitions

• In terms of geographical areas, growth will focus on Asia

Abrasive base papers

Air filtration

Coated specialties

Industrial papers

Label papers

Pre-impregnated décor papers

Release base papers

Sealing & Shielding papers

Wallpaper & Poster papers

Wipes

Operational excellence businesses

Support growth – be efficient• Offer price competitive products

• Innovate for cost improvement

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Ahlstrom’s near-term strategic roadmap

Build strategic foundation

• Set growth targets

• Focus business portfolio

• Identify key capabilities

• Strengthen balance sheet

Strengthen strategic direction

• Refresh vision and mission

• Specify culture, values and corporate brand

• Develop people, organization and processes

• Implement strategy of two business clusters

Leverage on strategic positions

• Achieve ROCE 13%

Started in 2009

Started in 2010

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5. New operating model

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Ahlstrom changed its operating model and organization as of July 1, 2010

• The new model is based on the new strategy of two business clusters – Value Added and Operational Excellence

• Objectives:• Improve financial performance and efficiency• Support stronger focus towards customer orientation• Build One Ahlstrom: common processes and way of

working, leadership and corporate culture• Improve utilization of key competencies and best

practices

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Key changes

• From six to five Business Areas, current Product Line structure (18 product lines) discontinued

• More transparency in external reporting: Fiber Composites and Specialty Papers segments discontinued, segment reporting according to new Business Areas

• Clearer responsibilities and processes in Account Management

• Common processes in key global functions: Sales & Marketing, Finance, Supply Chain, HR, Product & Technology Development

• Some changes in Executive Management Team

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Structure according to new operating model

Business Areas (5)

Supply Chain Business Units

Plants Product Families

Strategic GlobalKey Accounts

Global Sales Network

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6. Investor information

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Net sales in 2005–2009

• After IPO in March 2006, a large growth investment program was launched

• A total of EUR 500 million was spent on investments in 2005–2008: 50% through organic growth, 50% by acquisitions

0

500

1000

1500

2000

2500

2005 2006 2007 2008 2009

EU

R m

illion

1,802.41,760.8

1,599.11,552.6 1,596.1

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0

50

100

150

200

250

300

350

400

2005 2006 2007 2008 2009

EU

R m

illio

n

Investments in 2005–2009

• Investments in the near future will mainly concentrate on maintenance

• Annual capital expenditure level on maintenance investments is EUR 40 million

• Investments in 2009 were EUR 63.8 million

CAPEX excl. acquisitions CAPEX incl. acquisitions

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EBITDA in 2005–2009

0

20

40

60

80

100

120

140

160

180

200

2005 2006 2007 2008 2009

EU

R m

illio

n

0%

2%

4%

6%

8%

10%

12%

14%

EBITDA EBITDA, % of net sales

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EBIT (operating profit / loss) 2005–2009

-20

0

20

40

60

80

100

120

2005 2006 2007 2008 2009

EU

R m

illio

n EBIT excluding non-recurring items

EBIT

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Interest-bearing loans and borrowings

Non-current (long-term)

235.1

188.7

202.7

44.0

119.6

0

50

100

150

200

250

2005 2006 2007 2008 2009

EU

R m

illio

n

Current (short-term)

180.7

468.1

315.5

136.4

237.0

0

50

100

150

200

250

300

350

400

450

500

2005 2006 2007 2008 2009

EU

R m

illio

n

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Net cash from operating activities (excl. CAPEX)

209.6

102.4

43.9

119.2126.6

0

50

100

150

200

250

2005 2006 2007 2008 2009

EU

R m

illio

n

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Net debt (interest bearing net liabilities)

395.9

598.7

491.1

155.2

340.6

0

100

200

300

400

500

600

700

2005 2006 2007 2008 2009

EU

R m

illio

n

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Personnel (number of employees, year-end)

5,841

6,3656,481

5,6775,525

0

1000

2000

3000

4000

5000

6000

7000

2005 2006 2007 2008 2009

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Loans and interest rates (end of Q2/2010)

• Average maturity of the loan portfolio: 28 months

• Average interest rate duration: 27 months

• Average effective interest rate: 4.54%

• Gross debt: EUR 385.0 million

• Net debt: EUR 364.9 million

• Gearing ratio: 50.3%

• Liquidity: EUR 319.0 million including• cash• unused committed credit facilities and• cash pool overdraft limits

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Main long term financial targets

Profitability: Return on capital employed

(ROCE,%)

-2

0

2

4

6

8

10

12

14

2004 2005 2006 2007 2008 2009

Solidity: Gearing ratio (%)

0

20

40

60

80

100

120

2004 2005 2006 2007 2008 2009

Target: minimum of 13% Target: 50–80%

7.0

12.4

10.4

2.5

1.4

62.3 57.7

20.3

65.3

95.3

-1.1

57.7

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Hybrid bond* to strengthen capital structure

• EUR 80 million domestic hybrid bond with coupon rate of 9.50% per annum• Issued on November 9, 2009• The bond has no maturity but the company may call the bond after four years• Ahlstrom’s capital structure strengthened

• Gearing ratio reduced by approximately 20 percentage points, abrogating the impact of the dividend payment restrictions in the EUR 200 million revolving credit facility agreement signed in July 2009.

• Gearing ratio was brought down to the target range of 50–80%

*A hybrid bond is an instrument which is subordinated to the company's other debt obligations and which is treated as equity in the IFRS financial statements. Hybrid bonds do not confer to their holders the right to vote at shareholder meetings and do not dilute the holdings of the current shareholders.

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Share and dividend

Dividend policy• Ahlstrom will aim to pay a dividend of not less than one third of

the net cash from operating activities after operative investments, calculated as a three-year rolling average (revised in December 2009).

Share price (quarterly average)

0

5

10

15

20

25

30

0

5000

10000

15000

Ahlstrom OMXH index

Q1/

2006

Q1/

2009

Q1/

2008

Q1/

1007

EUR Value

Total amount of dividends paid (EUR million)

0

25

50

75

2005 2006 2007 2008 2009

65

46 47

2126

Q2/

2010

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-1

-0,5

0

0,5

1

1,5

2

2001 2002 2003 2004 2005 2006 2007 2008 2009

EU

R

Earnings and dividends per share 2001–2009 (2001–2003 FAS, 2004–2009 IFRS)

EPS DPS

-0.09

0.45

1.001.00

1.791.72

1.501.55

0.35

-0.380.01

1.31

1.71

0.91

0.61

1.42

• Ahlstrom has been a stable dividend payer, complying with its earlier dividend policy to pay a dividend averaging at least 50% of the profit for the period of the previous financial year

-0.72

0.55

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Shareholders

Major shareholders (31/07/2010)

1. Antti Ahlströmin Perilliset Oy 10.02%

2. Etola Erkki Olavi

3. Vilha Intressenter Ab

5.62%

5.09%

4. Varma Mutual Pension Insurance Company

3.28%

5. Huber Mona 2.69%

6. Tracewski Jacqueline 2.16%

7. Nahi Kai Anders Bertel 1.54%

8. Lund Niklas Roland 1.49%

9. Huber Samuel 1.37%

10. Huber Karin 1.37%

Shareholder structure (31/07/2010)

Corporations

Foreignholders

Finnish privateinvestors

Public sectorinstitutions

Financial andinsuranceinstitutionsNon-profitinstitutions

Nomineeregistered

12%

16%

2% 2%

1%

61%

5%

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7. Interim report January-June 2010

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Highlights of April-June 2010

• Net sales reached Q2/2008 levels

• Profitability continued to improve

• Strong cash flow

• Organization and operating model were revised to support updated strategy

• Capacity utilization rates of the projects included in the EUR 500 million investment program of 2007 & 2008 have improved due to increased demand, however, they still remain below target levels

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Shandong Puri Filter & Paper acquisition • Shandong Puri Filter & Paper Products

Limited• Manufactures transportation filtration

materials, will be part of Ahlstrom’s Filtration Business Area

• Based in Binzhou, Shandong province in northeastern China

• Currently employs 170 people• Transaction value: EUR 22.5 million • Rationale:

• Integral part of Ahlstrom’s expansion in Asia

• Serves global customers based in China

• Increases market share in Asia• Builds platform for further growth in the

region• Expected closing: End of September,

subject to regulatory approvals

Binzhou

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Return on capital employed doubled in H1/2010

-10

-5

0

5

10

15

Q2/2009 Q3/2009 Q4/2009 Q1/2010 Q2/2010

%

• ROCE is one of the most important strategy success indicators

ROCE target 13%

3.2

4.8

-9.4

5.2

10.9

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Net sales Q2/2009–Q2/2010

0

100

200

300

400

500

600

Q2/2009 Q3/3009 Q4/2009 Q1/2010 Q2/2010

EUR million

• Net sales rose by 22.7% from Q2/2009 – half of growth attributable to higher sales volumes, rest to price increases

• Net sales reached Q2/2008 levels

398.9 400.6420.5

441.0

489.4

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Net sales by region

0

50

100

150

200

250

300

Europe North America South America APAC Others

Q2/2009 Q2/2010

EUR million

• Fastest sales growth in Asia and South America

• Stronger USD together with higher volumes and prices boosted euro-denominated sales in North America

+19.3%

+15.7%

+33.4% +40.5%

+80.0%

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Net sales by business area in Q2/2010

0

20

40

60

80

100

120

140

160

AdvancedNonwovens

Filtration Glass &Industrial

Nonwovens

Home &Personal

Nonwovens

Release &Label Papers

TechnicalPapers

Q2/2009Q2/2010

EUR million

+12.1%

+14.8%+31.1%

+27.6%

+20.1%

+30.8%

• Net sales at Glass & Industrial Nonwovens were lifted by increased demand for building materials, especially flooring and wallcover

• Filtration benefited from strong improvement in demand for filtration materials in Europe and South America • Sales at Specialty Papers were boosted by the economic recovery through higher volumes and prices due to rising

pulp prices • Favorable currency fluctuations affected sales at Advanced Nonwovens• Home & Personal Nonwovens sales were lifted by recovered demand and currency fluctuations

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Operating profit/loss Q2/2009–Q2/2010

• EBIT clearly improved from Q2/2009 – increased sales volumes and streamlining measures started in 2009

• Q2/2010 includes EUR 4.2 million in gains from selling CO2 emission rights

EBIT, ex-items

EBIT

29.8

14.0

-26.6

13.19.7

29.0

13.7

19.517.5

12.8

-30

-20

-10

0

10

20

30

40

Q2/2009 Q3/2009 Q4/2009 Q1/2010 Q2/2010

EUR million

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Fiber Composites segment in Q2/2010 .

• Economic recovery boosted demand for filtration materials used by transportation industry and building materials, especially wallcover and flooring

• Demand for food packaging and teabag materials, as well as for nonwovens used in medical applications, continued steady, currency fluctuations lifted sales in euros

• In wiping fabrics, sales were lifted by recovered demand and currency fluctuations

• Wind energy and marine industries continued to show signs of recovery

Net sales

0

40

80

120

160

200

240

280

Q2/2009 Q2/2010

EBIT

0

2

4

6

8

10

12

14

16

Q2/2009 Q2/2010

EUR million

EUR million

21.4%

163.3%

212.4

14.0

5.3

257.9

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Specialty Papers segment in Q2/2010

• Specialty Papers’ sales increased by almost a quarter and demand for Release and Label papers surpassed pre-recession levels

• Demand for Technical Papers continued to increase, supported by the strong market and low inventories

• Successful sourcing of pulp, while higher raw material costs have been passed onto prices for most part

Net sales

0

40

80

120

160

200

240

Q2/2009 Q2/2010

EBIT

0

4

8

12

16

20

24

Q2/2009 Q2/2010

EUR million

EUR million

24.4%

209.4%

188.2

234.2

6.8

21.1

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Net cash from operating activities Q2/2009– Q2/2010

0

10

20

30

40

50

60

70

80

Q2/2009 Q3/2009 Q4/2009 Q1/2010 Q2/2010

EUR million

• Strong cash flow continued

• Operative net working capital and profitability improved, while higher financial items had negative effect

72.867.3

48.6

32.1

45.1

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Gearing in target range

• Net debt and gearing ratio significantly reduced compared to Q2/2009

• Gearing ratio on June 30, 2010 was 50.3%

0

100

200

300

400

500

600

Q2/2009 Q3/2009 Q4/2009 Q1/2010 Q2/2010

EUR million

40 %

50 %

60 %

70 %

80 %

90 %

100 %

Interest bearing net liabilities Gearing ratio, %

Gearing ratio:

target range 50–80%

569.5

511.3

395.9375.9 364.9

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Strong development of working capital

0

50

100

150

200

250

300

350

Q2/2009 Q3/2009 Q4/2009 Q1/2010 Q2/2010

EUR million

20

25

30

35

40

45

50

55

60

65

70

75

80Days

Operative working capital Turnover rate in days

• Target to decrease working capital by EUR 100 million in two years

• Project in the final phase

• Working capital was reduced by EUR 108 million and turnover improved by 31 days from the end of 2008 => turnover on June 30, 2010 was 45 days

*Operative working capital = Accounts receivables + inventories – accounts payable

298.6

268.0

244.7230.7

241.0

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Maturity profile of medium/long-term credit facilities

• Total liquidity, including cash, unused committed credit facilities, and the cash pool overdraft limits totaled EUR 319.0 million at the end of June

• Ahlstrom had available uncommitted credit facilities totaling EUR 159.3 million

0

50

100

150

200

250

300

2010 2011 2012 2013 2014-

EUR million

Medium and long-term loans

Undrawn credit facilities

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Income statement

EUR million Q2/2010 Q2/2009

Net sales

Cost of goods sold

489.4

-416.3

398.9

-349.4

Gross profit

Sales and general admin. expenses

Other income and expenses

73.1

-48.7

5.4

49.5

-41.7

1.9

EBIT 29.8 9.7

Net financial expenses -6.9 -4.8

Share of profit from associated companies

-0.4 -0.3

Profit before taxes 22.5 4.7

Tax income (+) / Income taxes (-) -7.4 -2.2

Profit for the period 15.1 2.5

ROCE, % 10.9 3.2

Up 22.7% on mainly higher sales volumes and increased pricesIncreased sales volumes and pulp prices

Includes a gain from selling CO2 emission rights

2009 temporary layoffs, 2010 higher incentive accruals

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Balance sheet

EUR million 30.6.2010 31.3.2010

Non-current assets 1 055.4 1 030.7

Inventories 203.3 181.3

Trade and other receivables 354.1 332.2

Other current assets 2.4 3.6

Cash 20.0 27.2

Assets 1 635.2 1 575.0

Equity 725.6 679.3

Provisions 13.3 15.6

Interest-bearing debt 385.0 403.1

Employee benefit obligations 80.3 78.9

Trade and other payables 390.2 366.1

Other liabilities 40.9 32.2

Total equity and liabilities 1 635.2 1 575.0

Gearing ratio, % 50.3 55.3

Positive cash flow on improved profitability

Balance sheet further strengthened

Increased sales volumes, higher raw material costs and longer payment terms

Increased sales volumes, higher prices, improved net working capital turnover

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Cash flow

EUR million Q2/2010 Q2/2009

EBITDA 56.4 35.7

Cash flow adjustments -1.7 -0.7

Change in net working capital 12.6 30.6

Financial items -20.5 4.3

Taxes paid -1.7 2.9

Net cash from operating activities

Investing activities

45.1

-6.1

72.8

-22.0

Cash flow after investing activities

Repurchase of own shares

Payment of dividends

Drawdowns and repayments

39.1

-

-25.6

-21.5

50.8

-

-21.0

-14.2

Net cash from financing activities

Change in cash

-47.1

-8.1

-35.2

15.6

Level of maintenance investments

Additional working capital unleashedLoan portfolio currency swap (EUR/USD) effect

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Management’s near-term agenda

• Implementation of new organization and operating model

• Development of global key accounts and sales processes

• Strengthening and harmonization of corporate culture

• Project to reduce production waste• Target to cut production waste by 15

percent, equivalent to savings of about EUR 20 million annually

• Active assessment of growth strategy in Asia continues

• Continuous development and improvement of operations

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Outlook

• Net sales in 2010 is expected to be above 2008 level

• Sales prices are and will be increased to cover rising raw material costs

• Higher sales volumes

• EBIT, excluding non-recurring items, in 2010 is expected to increase from 2009

• Improved sales, more efficient cost structure, continuous streamlining efforts

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Thank You!