Strategy

• Focusing on NBSK Market Pulp: This product is considered premium grade and demands the highest price relative to other kraft pulps.
• Operating Modern, World-class Mills: We strive to keep operating costs as low as possible and to operate profitably in all market conditions. Our modern production facilities provide us with the best platform to be an efficient, low-cost producer of high-quality NBSK pulp without the need for significant sustaining capital.
• Improving Efficiency and Reducing Operating Costs: We continually focus on increasing productivity and efficiency through cost reduction initiatives and targeted capital investments. We endeavor to make high return capital investments that increase production and efficiency, reduce costs and improve product quality. At our German mills, some of these capital investments qualify for government grants and some offset wastewater fees that would otherwise be payable. We also seek to reduce operating costs by better managing certain operating activities such as fiber procurement, sales and marketing and customer service. We coordinate these activities at our mills to realize on potential synergies among them.

• Maximizing Energy Realizations: In 2009, our mills generated over 470,000 megawatt hours of surplus energy, primarily from a renewable carbon-neutral source. We are pursuing several initiatives to increase our overall energy generation and the amount of and price for our surplus power sales. Such initiatives include targeted high return capital projects to increase generation and connectivity to the electric grid. They also include working with stakeholders to have our surplus energy recognized as "green" energy and enhancing the supply of wood residuals.

• Pursuing Growth: We pursue growth through organic growth and acquisitions primarily in Europe and North America. We pursue organic growth through active management and targeted capital expenditures designed to produce a high return by increasing production, reducing costs and improving quality. We seek to acquire interests in companies and assets in the pulp industry and related businesses where we can leverage our experience and expertise in adding value through a focused management approach and our global production, maintenance, procurement and sales expertise. We view these types of acquisitions, which can occur at significant discounts to replacement costs, as having the ability to generate strong value.