MSEF, une méthode différente pour gagner des parts de marché à destination des industriels.

2. Market Share Expansion Financing (MSEF ® ) An NFC/ Northern Finance Corporation Product To maximize Your Financial Performance and Profit

3. 100% 80% USED CAPACITY 20% IDLE CAPACITY BREAK-EVEN LOSS PRODUCTION CAPACITY FIXED COSTS VARIABLE COSTS Profit Turnover

5. Idle Capacity Potential Strong Financial Ratio Impact (= 14% on total sales and 50% on incremental turnover!) (= 5% on sales) 175 million 50 million Profit Before Tax 625 million 500 million Variable Costs 450 million 450 million Fixed Costs 1250 million 1000 million Turnover At 100% Capacity At 80% Capacity

11. The « Sales Push » Approach is A DEAD END! What is the REAL solution?

16. MSEF ® « Sales Pull » Idle Capacity XYZ Overvalued Asset Target Target Buys Sale of free capacity MEF Sale of asset at balance sheet value Balance Sheet Stock 2000 MEF 2000 NFC Buys

18. The MSEF® Concept XYZ Asset Target Market Price Refinancing of NFC Fund MEF Idle Capacity MEF pays a portion of target’s purchases

19. Implementing the MSEF® System XYZ Variable Costs 50% Incremental CASH Contribution 50% 250 Million Incremental Business 125 Million 125 Million 60 Million (Refinancing Capacity) 5 Million (NFC Fee) = 60 Million net contribution = 24% of Incremental Turnover

24. Case Study Integrated Pulp & Paper Manufacturer Income Statement (Millions) 3 396,80 +96% 1 736,90 -40% 1 033,00 Net Profit 1 283,00 1 692,30 804,70 Taxes and other provisions 4 679,80 +36,4% 3 429,20 -46% 1 837,70 Profit before reserves and taxes 560,00 20% Refinancing Capacity 1 041,20 1 409,80 1 041,20 Financial expenses 6 281,00 +27,3% 4 932,60 -40% 2 705,70 Operating profit 1 810,40 1 807,70 1 810,40 Depreciation 1 459,30 1 465,00 1 459,30 other * 290,30 273,70 290,30 rent * 4 343,80 4 242,40 4 343,80 17% personnel * 5 202,20 4 954,50 4 823,60 17% outside services * 12 331,20 11 240,30 10 489,30 40% materials * Costs & expenses 31 718,20 28 916,70 25 922,40 890,20 890,20 262,20 Other income + own use 30 828,00 +10% 28 026,50 -8,00% 25 660,20 Sales MSEF-96 1995 1996

25. Balance Sheet 41068.9 39098.7 38705.4 TOTAL 41068.9 39098.7 38705.4 TOTAL 10073.2 7440.4 10073.2 Current 12353.7 16355.7 12353.7 Long Liabilities 6381.0 5798.6 6381.0 Reserves 2975.6 759.7 612.1 Cash & Bank 386.7 1079.9 386.7 Investments 5458.4 2701.4 3094.9 4833.1 4256.8 4833.1 Receivables 2061.6 964.5 2061.6 Retained Earnings 4088.8 4426.4 4088.8 Inventory 3396.8 1736.9 1033.3 Profit for the period Distributable Current Assets 6802.6 6802.6 6802.6 Non-distributable Shareholders Equity 28787.7 28575.9 28787.7 Fixed Assets MSEF-96 1995 1996 MSEF-96 1995 1996 Liabilities Assets

26. Ratio’s RC is Only Applied When Profit is Realised Refinancing Capacity of 560 Yields Extra Net Profit of 2.364 =>96% increase 311 311 311 311.000.000 shares =10.92 3397 = 5,58 1736 = 3,32 1033 Earnings / share => 69% increase 18232 15303 16277 (ROE) = 18,6% 3397 = 11% 1736 = 6% 1033 Return on Equity =>89% increase 41069 39098 38705 (ROA) =8,3% 3397 = 4,4% 1736 = 2,8% 1033 Return on Assets =>83 % increase 30828 28026 25660 = 11% 3397 =6% 1736 = 4% 1033 Net Profit => 25% increase 30828 28026 25660 = 15% 4679 =12% 3429 = 7% 1838 Profit before Taxes MSEF-96 1995 1996