8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 13, 2008

ABITIBIBOWATER INC.

(Exact name of Registrant as Specified in Charter)

Delaware	001-33776	98-0526415
(State or other Jurisdiction of Incorporation or Organization)	(Commission File Number)	(I.R.S. Employer Identification Number)

AbitibiBowater Inc.

1155 Metcalfe Street, Suite 800

Montreal, Quebec

Canada H3B 5H2

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (514) 875-2160

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure.

On March 13, 2008, Abitibi-Consolidated Inc. (“Abitibi”), a subsidiary of AbitibiBowater Inc. (the “Company”), will make a presentation to potential lenders. A copy of the slides to be used in the presentation (the “Lender Presentation”) is furnished herewith as Exhibit 99.1.

The information contained in the Lender Presentation is summary in nature and is intended to be considered in the context of Abitibi’s and the Company’s filings with the Securities and Exchange Commission and the other public announcements that are made, by press release or otherwise, from time to time. The Lender Presentation contains forward-looking statements that involve uncertainties and risks. Actual results could differ materially from those described in the Lender Presentation and the Company cautions investors not to place undue reliance on the forward-looking statements contained in the Lender Presentation. Certain of this information has not previously been made publicly available by the Company and may be deemed material. The information in the Lender Presentation also updates certain information previously reported by the Company.

The information contained in this Current Report on Form 8–K, including Exhibit 99.1, is furnished pursuant to Item 7.01 of Form 8–K and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. The information in this Current Report shall not be incorporated by reference into any registration statement or any other document filed pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing. By filing this Current Report on Form 8–K and furnishing the information contained herein, including Exhibit 99.1, the Company makes no admission as to the materiality of any such information.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

99.1 Lender Presentation (March 13, 2008)

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

	ABITIBIBOWATER INC.
	By:	/s/ Jacques P. Vachon
	Name:	Jacques P. Vachon
	Title:	Senior Vice President, Corporate Affairs,
		Chief Legal Officer and Secretary
Dated: March 13, 2008

3

EXHIBIT INDEX

Exhibit No.	Description
99.1	Lender Presentation (March 13, 2008)

4

EX-99.1

Lenders Presentation

March 2008

Exhibit 99.1

2

Forward-Looking Statements

Statements in this presentation that are not reported financial results or other historical information are "forward-looking statements" within the meaning of the

Private Securities Litigation Reform Act of 1995.  They include,

for example, statements about our current liquidity situation and proposed financing plans to

address it, industry conditions and trends, our planned reduction of newsprint and commercial printing papers capacity, the closures of certain of our paper and

sawmills, our ability to realize synergies from the combination of Abitibi-Consolidated Inc. and Bowater Incorporated, the anticipated timing of and the progress

of integration efforts related to the combination, our ability to meet our $1 billion debt reduction target (including the success of our program to sell non-core

assets, consolidate operations and the success of other actions aimed at reducing our debt), the continued growth of our international newsprint position, our

competitive position, our ability to maintain and improve customer service levels, our financial performance, and our business outlook, strategies and

assessment of market conditions.  Forward-looking statements may be identified by the use of forward-looking terminology

such

as

the

words

“will”,

“could”,

“may,”

“intend,”

“expect ”,

“believe ”,

“anticipate ”,

and

other

terms

with

similar

meaning

indicating

possible

future

events

or

actions or potential impact on the business or security holders of AbitibiBowater.

These forward-looking statements are not guarantees of future performance.  They are based on management's assumptions, beliefs and expectations, all

of

which

involve

a

number

of

business

risks

and

uncertainties

that

could

cause

actual

results

to

differ

materially.

These

risks

and

uncertainties

include,

but

are

not

limited

to,

our

ability

to

complete

a

series

of

financing

transactions

that

are

contingent

upon

one

another,

the

current

state

of

the

credit

markets,

an

in

ability

to

reduce

newsprint

and

commercial

printing

capacity

as

quickly

as

anticipated,

an

inability

to

obtain

timely

contributions

to

our

cost-reduction initiatives

from our unionized and salaried employees, the continued strength of the Canadian dollar against the U.S. dollar, worsening industry conditions and further

growth in alternative media, actions of competitors,

the demand for higher margin coated and uncoated mechanical paper, our ability to realize announced

price increases, and the costs of raw materials such as fiber, energy, and chemicals.  In addition, with respect to forward-looking statements relating to the

combination of Abitibi-Consolidated and Bowater, the following factors, among others, could cause actual results to differ materially from those set forth in the

forward-looking statements: the risk that the businesses will not be integrated successfully or that the anticipated improved financial

performance,

product

quality

and

product

development

will

not

be

achieved;

the

risk

that

other

combinations

within

the

industry

or

other

factors

may

limit

our

ability to improve our competitive position;  the risk that the cost savings and other expected synergies from the transaction may not be fully realized, or may

take longer to realize than expected and may not benefit Abitibi

and Bowater to the same or similar extent; and disruption from the transaction making it more

difficult to maintain relationships with customers, employees or

suppliers.  Additional factors are listed from time to time in AbitibiBowater’s filings with the

Securities and Exchange Commission and the Canadian securities regulatory authorities, including those factors contained in the company’s Quarterly Report

on Form 10-Q for the quarterly period ended September 30, 2007 and the company’s registration statement on Form S-3 filed on October

29,

2007,

under

the

caption

“Risk

Factors.”

All

forward-looking

statements

in

this

news

release

are

expressly

qualified

by

information

contained

in

the

company’ s filings with the Securities and Exchange Commission and the Canadian securities regulatory authorities. AbitibiBowater undertakes no any

obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

Any information about industry or general economic conditions contained in this news release is derived from third-party sources that the company believes are

widely accepted and accurate; however, the company has not independently verified this information and cannot assure its accuracy.

3

Agenda

Abitibi Subsidiary Overview

Public Q&A

Financial Overview

Key Investment Highlights

AbitibiBowater

Overview

Transaction Summary

Transaction Overview

5

Executive Summary

Abitibi-Consolidated Inc. (“Abitibi,”

or the “Company”) is a leading global producer of

forest products

—

Subsidiary of AbitibiBowater

Inc. (“ABH”)

—

One of the largest producers of newsprint in the world and one of the largest manufacturers of

commercial printing papers

—

Among the largest recyclers of newspapers and magazines in the world

The proposed financing will retire near-term notes and increase available liquidity

—

Abitibi notes and credit facilities maturing in 2008 and 2009 totaling $1.2 billion

Short-term liquidity is being constrained by the strong Canadian dollar, closure costs

and near-term maturities

At present, the Company is experiencing a significantly improving environment and

strong operating momentum

Abitibi plans to refinance the aforementioned debt with a combination of term loan,

secured notes, exchange notes and convertible notes

—

The

Company

will

also

receive

$161

million

of

cash

proceeds

from

the

sale

of

its

Snowflake,

Arizona facility in April 2008

6

Sources and Uses

$1,582.8

Total Sources

161.0

Proceeds from Snowflake Asset Sale

300.0

ABH Convertible Notes

256.8

Abitibi Exchange Senior Notes

1

415.0

Abitibi Senior Secured Notes

$450.0

Abitibi Senior Secured Term Loan (364 day)

Sources

195.6

Retire Abitibi 6.95% Notes due April 1, 2008

11.0

Accrued Interest on Retired Notes

160.0

Retire Abitibi Credit Facility B due December 31, 2008

150.0

Retire Abitibi 5.25% Notes due June 20, 2008

$1,582.8

Total Uses

70.0

Estimated Transaction Costs

50.0

Paydown

Term Loan (with portion of Snowflake proceeds)

505.0

Retire Abitibi Credit Facility A due December 31, 2008

150.0

Retire Abitibi 7.875% Notes due August 1, 2009

$291.2

Excess Cash

Uses

1

Assumes 90% participation in exchange offer.

7

-

Alabama River, AL

-

Augusta, GA (JV)

-

Snowflake, AZ (in contract for sale)

Pro Forma Corporate Structure

-

New Senior Term Loan (364 day)

$450mm*

-

New Exchange Notes due 2010

257mm*

-

New Senior Notes due 2011

415mm*

-

Notes due 2010

395mm

-

Notes due 2011

400mm

-

Notes due 2013

350mm

-

Notes due 2015

450mm

-

Notes due 2016+

1,050mm

Total Debt

$3,767mm

AbitibiBowater

Inc.

(Delaware)

Bowater Inc.

(Delaware) and

its subsidiaries

Abitibi-

Consolidated

Inc.

(Canada)

Donohue Corp.

(Delaware) and

its subsidiaries

-

A/R Securitization funded amount

$271mm

(off-balance sheet)

Abitibi-

Consolidated

Company of

Canada Inc.

(“ACCC”)

(Quebec)

Bridgewater

Paper Company

Limited

(UK)

-

Alma, QC

-

Amos, QC

-

Baie-Comeau, QC

-

Beaupre, QC

-

Clermont, QC

-

Fort Frances, ON

-

Sawmills (19)

-

Engineered Wood (2)

-

Hydro Entities (8)

-

Remanufacturing (4)

-

Recycling Facilities (4)

-

Timberland

Other Assets

Paper Mills

-

Bridgewater Mill

-

UK and Europe A/R

and Inventory

-

Grand Falls, NL

-

Iroquois Falls, ON

-

Kenogami, QC

-

Laurentide, QC

-

Mackenzie, BC

-

Thorold, ON

Paper Mills

-

New Convertible Notes

$300mm

* ACCC is the issuer of the new loan and notes.

8

Summary Terms of Senior Secured Term Loan

Unrated

Expected Ratings:

Abitibi-Consolidated Inc. (“Abitibi”), the direct parent company of ACCC, and each of ACCC’s

existing and future subsidiaries (including D-Corp and its subsidiaries) with limited exceptions

Guarantors:

None, pre-payable immediately at par

Call/Repayment Premium:

TBD

Offer Price:

TBD

Interest Rate:

Asset sales (including the first $50 million of the Snowflake proceeds); insurance proceeds,

incurrence of indebtedness; in addition, the amount outstanding will not exceed the lesser of (i)

$450 million (the “Maximum Amount”) and (ii) the sum of: (a) a percentage of the book value of

accounts receivable and tax refunds; and (b) a percentage of the book value of inventory to be

determined

Mandatory Repayment:

None

Amortization:

364 days

Maturities:

$450

million

Facility Size:

First

lien

on

substantially

all

of

Abitibi’s,

ACCC’s

and

the

other

Guarantors’

assets

other

than

fixed

assets, IP and capital stock of subsidiaries, but including all assets of D-Corp and its subsidiaries

that are Guarantors

Security:

Abitibi-Consolidated Company of Canada (“ACCC”)

Borrower:

9

Summary Terms of Senior Secured Notes

Unrated

Expected Ratings:

Abitibi-Consolidated Inc. (“Abitibi”), the direct parent company of ACCC, and each of ACCC’s

existing and future subsidiaries (including D-Corp and its subsidiaries) with limited exceptions

Guarantors:

NCL

Call/Repayment Premium:

TBD

Offer Price:

TBD

Interest Rate:

Change of control put at 101; asset sale repurchase offer at par

Mandatory Repayment:

None

Amortization:

3 years

Maturities:

$415

million

Facility Size:

First lien on certain of Abitibi’s, ACCC’s

and other Guarantors’

fixed assets (subject to permitted

liens) and certain other assets

Security:

Abitibi-Consolidated Company of Canada (“ACCC”)

Issuer:

AbitibiBowater Overview

11

Merger with Bowater

On October 29, 2007, Abitibi-Consolidated Inc. and Bowater Incorporated completed a merger

of equals (“Merger”) and reorganized under a new holding company called AbitibiBowater Inc.

(“ABH”)

—

The

combined

company

is

the

largest

producer

of

newsprint

in

the

world

by

capacity

—

The diversified product line includes newsprint, commercial printing paper, market pulp and wood products

—

AbitibiBowater

currently trades on the NYSE and the TSX under the ticker ABH

Expects

annualized

consolidated

EBITDA

synergies

from

the

Merger

to

be

$375

million

—

Upward revision from initial synergy estimate of $250 million

ABH operates 28 pulp and paper mills and 31 wood products facilities located in Canada, the

United States,

Abitibi

56%

Bowater

44%

Abitibi

54%

Bowater

46%

Newsprint

47%

Coated and

Specialty

35%

Market Pulp

8%

Wood Products

10%

2007 ABH Revenue by Product

2007 ABH Revenue by Subsidiary

the United Kingdom and South Korea

12

Favorable Recent Developments for ABH

Following the merger, AbitibiBowater began a company-wide strategic review of the

business

—

On November 29, 2007, ABH announced Phase 1 of its post-merger action plan to reduce paper

production capacity by approximately 1 million metric tons per year

—

Since Q3 2007, ABH has announced the following price increases:

On

February

11,

2008,

ABH

announced

the

sale

of

Abitibi’s

Snowflake,

Arizona

mill

to

Catalyst Paper Corporation for cash proceeds of $161 million

—

The sale of Snowflake

sale proceeds target of $500 million

—

Expected to close in April 2008

60

60

-

-

—

Other

60

-

60

-

—

Super-brite

60

-

60

-

—

SC

Uncoated Mechanical (st)

60

-

120

60

Coated Mechanical (st)

$60

$60

$25

$ -

Newsprint (mt)

Q2 2008

Q1 2008

Q4 2007

Q3 2007

Abitibi

Grades

Price Increases ($ per ton):

$284

61

27

75

$121

ABH

ACI

$146

Total

33

Wood Products

-

Market Pulp

39

Commercial Print Papers

$74

Newsprint

EBITDA Impact for $25

Change in Price or Cost

($ in millions)

1

Excludes retained working capital of approximately $19 million.

marks an important step by ABH to achieve the previously announced asset

1

Abitibi Subsidiary Overview

14

Abitibi Overview

Abitibi-Consolidated Inc., headquartered in Montréal, Canada, is a global leader in newsprint

and commercial printing papers (primarily uncoated groundwood)

—

The Company markets its products in 70 countries and employs 11,500 people

It owns or is a partner in 15 paper mills, 19 sawmills, 4 remanufacturing facilities, 2

engineered wood and 8 hydro-electric generation entities in Canada, the United States and

the United Kingdom

—

Abitibi retains for itself 550 MW of 750 MW total generation capacity

Abitibi manages approximately 39 million acres of timberland in Canada

For the year ended December 31, 2007, the Company generated revenue of $3,829 million

Historical Shipments

FY2007 Revenue Breakout

Source:  RISI

Note:  Newsprint in millions of metric tons; Commercial paper in

metric tons; Wood products in bbf

N.A

Newsprint

34%

Commercial

Printing Papers

33%

Wood

Products

13%

Corporate Profile

Int’l

Newsprint

20%

4.0

4.0

3.5

3.3

1.7

1.8

2.2

2.0

1.9

1.6

1.7

1.7

2004

2005

2006

2007

Newsprint

Commercial Paper

Wood Products

15

Diverse Product Offering

Manufactured and engineered wood for

residential and commercial construction

as well as specialized applications such

as mobile homes, roofing, and flooring

material

Wood Products

Commercial printing papers for

magazines, catalogs, direct mail inserts,

instruction manuals, maps, advertising

inserts, flyers, and books

Commercial Printing Paper

Newsprint for newspapers, advertising

inserts, flyers, brochures, circulars,

telephone and other directories, and

commercial guides

Newsprint

Segment Description

Product Segment

16

Broad and International Footprint

North American manufacturing facilities are located near key domestic markets and many have access to

key export markets

North America

Quebec, Canada

United Kingdom

17

Newsprint Overview

The North American newsprint industry is a commodity market and prices are cyclical

In addition to newspapers, newsprint is an important component of a wide variety of other

applications

—

Advertising

inserts,

flyers,

brochures,

circulars,

telephone

and

other

directories,

and

commercial

guides

Suppliers have converted and reduced capacity

—

ABH recently announced capacity reductions of 600,000 metric tons during Q1 2008

—

Three price increases have been announced since Q4 2007 totalling $145 per metric ton

For the year ended December 31, 2007, the Company generated Newsprint revenue of $2,024

million

0

2

4

6

8

10

12

14

16

18

2002

2003

2004

2005

2006

2007E

2008E

2009E

2010E

2011E

2012E

Capacity

Shipments

$300

$350

$400

$450

$500

$550

$600

$650

$700

$750

$800

Source: RISI

N.A. Newsprint Supply & Shipments

Increasing Newsprint Pricing (48.8 gram)

18

Source: PPPC; RISI, December 2007

North American Newsprint Operating Rates

90%

91%

92%

93%

94%

95%

96%

97%

98%

99%

100%

2004

2005

2006

2007

2008

Without Closures

With Closures

95% Threshold

Above which prices

generally move higher

North American Newsprint –

Capacity and Operating Rates

19

Source: PPPC

Abitibi is actively focused on expanding distribution and sales to non-North American

markets

Excluding North America, demand grew approximately 2.3% worldwide in 2007 and is

expected to experience similar growth in 2008

-7.7%

5.4%

0.7%

7.7%

2.7%

3.5%

0.1%

-1.0%

-0.6%

-10%

-5%

0%

5%

10%

World

NA

Western

Europe

Eastern

Europe

Japan

Non-

Japan

Asia

Latin

America

Africa

Oceania

Newsprint –

Increased Export Opportunities

2008 Global Newsprint Demand Forecast

Commercial Printing Papers Overview

Abitibi

is

one

of

the

world’s

largest

uncoated

groundwood

paper

producers

with

total

annual

production

of

approximately

1.5

million

metric

tons,

including

market

pulp

CPP

demand

is

primarily

driven

by

advertising

spending

and

print

media

usage,

which

tend to rise when GDP is robust

—

Advertising trend continues to shift to the use of higher value paper grades, including

supercalendered

and hybrid specialty papers

In

2007,

approximately

93%

of

sales

were

to

North

America

and

7%

to

other

countries

For

the

year

ended

December

31,

2007,

the

Company

generated

CPP

revenue

of

$1,257

million

0

1

2

3

4

5

6

7

8

2002

2003

2004

2005

2006

2007E

2008E

2009E

2010E

2011E

2012E

Capacity

Demand

$300

$400

$500

$600

$700

$800

$900

$1,000

N.A. Uncoated Groundwood

Supply & Demand

Uncoated

Groundwood

(Supercalendered

35

lb.)

Source: RISI

20

21

Wood Products Overview

Abitibi is a top 5 producer of wood products in North America with annual capacity of

approximately

2.0

billion

board

feet

—

The sawmills in Canada are a major source of wood chips for Abitibi’s pulp and paper mills, thereby

reducing cost and securing fiber

—

Lumber products manufactured at sawmills include studs, structural lumber and remanufactured wood

products (i.e. furniture parts, fencing, bed frames, etc.)

Historically the wood products segment is closely tied to the housing sector, which is

currently in a downturn

—

Eastern Canada benefits from access to the Northeastern markets

For

the

year

ended

December

31,

2007,

the

Company

generated

Wood

Products

revenue

of $496 million

0

10

20

30

40

50

60

70

80

90

2002

2003

2004

2005

2006

2007E

2008E

2009E

2010E

2011E

2012E

Capacity

Demand

250

275

300

325

350

375

400

425

Source: RISI

Lumber Supply & Demand (North America)

Lumber Pricing (Crows Framing Index)

Key Investment Highlights

23

Key Investment Highlights

Leading Market Position in Newsprint and Uncoated Mechanical Papers

World-Class, Low-Cost Mills

Strong and Experienced Management Team

Significant Working Capital and Fixed Asset Volume

Considerable Synergies from Merger Still to Come

Well Positioned to Benefit from Strengthening Pricing Environment

24

Leading Market Positions in Newsprint and Uncoated

Mechanical Papers

Scale has provided the opportunity to more effectively understand changing market dynamics

—

ABH, our parent company, is one of the largest pulp and paper manufacturers in the world

In 2007, Abitibi was the largest producer of Newsprint and Uncoated Mechanical Paper in

North America

—

Newsprint represent 54% of the Abitibi’s sales

The

merger

of

Abitibi

and

Bowater

resulted

in

the

combination

of

the

two

largest

manufacturers of newsprint in North America by capacity

Newsprint –

N.A. Share of Capacity¹

Uncoated Mechanical Paper –

N.A. Share of Capacity

Source: RISI

1

Pro

Forma

for

sale

of

Snowflake,

Arizona

mill

to

Catalyst

Paper

Corporation.

25

World-Class, Low-Cost Mills

According

to

a

third

party

study,

2

Abitibi

newsprint

facilities

are

in

the

top

quartile

of

the

cash

cost

curve

in

North America and 5 are in the top half

Source: Company

$300

$350

$400

$450

$500

$550

$600

$650

Newsprint Mills

Abitibi Mills

North American Mill Level Cost Curve

26

Well Positioned to Benefit from Strengthening

Pricing Environment

The North American newsprint and commercial printing paper industry is a commodity market and paper

prices are cyclical. Since Q3 2007, the Company has increased prices on several of its products

Newsprint prices have risen substantially since the fourth quarter of 2007, as North American producers

have announced three separate price increases totaling $145 per metric ton to be implemented by June

2008

Abitibi has raised prices to improve profitability, including the realization of an approximately $25 per

metric ton increase for newsprint in the fourth quarter of 2007 and a $60 per short ton increase on

uncoated mechanical papers in the fourth quarter of 2007

Impact of Recent Price Implementation and Announcement

Source: RISI, December 2007

1

Based on 2008E shipments.

$446

23

63

84

$276

Illustrative Impact

($ in millions)

0.19

0.52

0.70

1.9¹

Annual Shipments

(millions of tons)

Total

120

120

120

$145

Total

Increases

60

60

60

$60

Q2 2008

60

-

—

Other

-

60

—

Super-brite

-

60

—

SC

Uncoated Mechanical (st)

$60

$25

Newsprint (mt)

Q1 2008

Q4 2007

Price Increases ($ per ton):

27

2007 Announced Capacity Rationalization

AbitibiBowater

Belgo

(115)

Q1 2008

Permanent closure

AbitibiBowater

Dalhousie

(200)

Q1 2008

Permanent closure

AbitibiBowater

Mackenzie

(195)

Q1 2008

Indefinitely Idling

AbitibiBowater

Gatineau

(80)

Permanent closure

AbitibiBowater

Calhoun

(100)

Grade shift

Catalyst

Crofton/P.Alberni

(134)

Sep-07

Production shift

Kruger

Corner Brook, NF

(80)

Nov-07

Indefinitely Idling

Tembec

Kapuskasing, QC

(100)

Oct-07

Indefinitely Idling

Blue Heron

Pomona, CA

(145)

May-07

Permanent closure

TOTAL North America

(1,149)

Company

Mill

`000 mt

Date

Conversion/Closure/Idling

Holmen

Hallsta, Sweden

(110)

2008

Permanent closure

Holmen

(40)

2008

Production shift

Norske Skog

Europe

(350)

TBD Mar 2008

Under Construction

Norske Skog

Skogn,Norway

(89)

2008

Reduce newsprint production in 2008

Norske Skog

Follum, Norway

(64)

2008

Reduce newsprint production in 2008

Norske Skog

Parenco, Holland

(24)

2008

Reduce newsprint production in 2008

Norske Skog

Golbey, France

(24)

2008

Reduce newsprint production in 2008

Myllykoski

Lang Papier

(50)

1H 2008

Production curtailment

Stora

Summa, Finland

(270)

Q1 2008

Permanent closure (standard & lightweight)

Norske Skog

Jeonju, South Korea

(180)

Jan-07

Permanent closure

TOTAL Outside North America

(1,201)

GRAND TOTAL

(2,350)

NEWSPRINT CAPACITY RATIONALIZATION OUTSIDE NORTH AMERICA

Source: PPPC, Press Releases, Company Reports

Note: Capacity realization includes plant closures, conversions and idling

Company

Mill

`000 mt

Date

Conversion/Closure/Idling

NEWSPRINT CAPACITY RATIONALIZATION IN NORTH AMERICA

Q3 2008

Q2 2008

Considerable Synergies from ABH Merger Still to Come

At

the

time

of

the

merger,

Management

announced

$250

million

of

consolidated

annualized

EBITDA

synergies

—

ABH is expected to achieve $250 million of run-rate synergies by Q1 2009

In

November

2007,

after

the

Phase

I

review,

ABH

revised

its

original

estimate

up

to

$375

million

by

the

end

of

2009

—

Synergies will come from:

Historically, ABH predecessor companies have been able to achieve higher than expected

synergies

—

Donohue acquisition (2000): Announced $250 million target and achieved $294 million, exceeding

plan by 17.6%

—

Alliance acquisition (2001): Announced $60 million target and

achieved $80 million, exceeding plan by

33.3%

30

50

90

$205

Amount

Logistics

Procurement

SG&A

Manufacturing

($ in millions)

28

29

Strong and Experienced Management Team

The management team has an average of over 20 years of experience in the Industry

15

6

31

7

26

24

17

30

34

Years in Industry

17

SVP and CFO

William Harvey

31

SVP, International Business Division

Thor Thorsteinson

6

VP, Controller

Joseph Johnson

24

SVP, CPP Division

Alain Grandmont

15

VP, Treasurer

Duane Owens

20

Executive Chairman

John Weaver

Years at Company

Title

Person

7

SVP, North American Newsprint Division

Pierre Rougeau

26

SVP, Wood Products Division

Yves Laflamme

2

President and CEO

David Paterson

Financial Overview

31

Historical Abitibi Financial Overview

$127

$146

$226

$100

2004

2005

2006

2007

($ in millions)

$463

$445

$294

$141

2004

2005

2006

2007

($ in millions)

$4,071

$4,409

$4,278

$3,837

2004

2005

2006

2007

($ in millions)

$590

$591

$519

$241

2004

2005

2006

2007

($ in millions)

Note: All financials include D-Corp and are in US dollars; based on average exchange rate for each respective year

1

Pro

Forma

assuming

approximately

50%

of

$375

million

of

run-rate

synergies

benefits

Abitibi.

1

Revenue

Adjusted EBITDA

CAPEX

Adjusted EBITDA -

CAPEX

32

2007 Quarterly Abitibi Financial Overview

$22

$14

$29

$37

Q1

Q2

Q3

Q4

($ in millions)

$38

($102)

($9)

$24

Q1

Q2

Q3

Q4

($ in millions)

$911

$969

$956

$1,001

Q1

Q2

Q3

Q4

($ in millions)

$60

$38

$20

($65)

Q1

Q2

Q3

Q4

($ in millions)

$(65)

Note: All financials include D-Corp and are in US dollars; based on average exchange rate for each respective year

1

Does not assume any synergies.

Revenue

Adjusted EBITDA¹

CAPEX

Adjusted EBITDA -

CAPEX

Abitibi Q4 2007PF “Run-rate EBITDA”

Bridge

($65)

$125

$9

$10

$31

$11*

$124

(75)

(50)

(25)

0

25

50

75

100

125

150

Q4 2007

Pricing

Volume

FX

Synergies

Other

Q4 2007PF

($ in millions)

Abitibi Q4 2007 to Q4 2008 EBITDA Bridge

Note: All financials include D-Corp and are in US dollars; based on average exchange rate for each respective year

* Includes abnormally high SG&A in Q4 2007 from the merger.

33

34

Abitibi Pro Forma Cash Flow and Liquidity

$5

Total

(25)

PF Average Quarterly Capex

(94)

PF Interest Expense

$124

Q4 2007PF EBITDA

Pro Forma Cash Flow

($ in millions)

$152

Residual Cash Balance

(13)

Required Minority Interest Disbursements (Q2 & Q3)

(28)

Required Pension Payments (Q2 & Q3)

(98)

Estimated FCF (Q2 & Q3)

$291

PF Cash Balance

Pro Forma Liquidity

Necessary to absorb seasonal

working capital swings of

$125 –

$150  million

Note: All financials include D-Corp and are in US dollars; based on average exchange rate for each respective year

Substantial Collateral Value for Lenders

137.7

Add-back Residual Interest in Securitization

$192.4

Trade Accounts Receivable on Balance Sheet

$268.9

Total Accounts Receivable

$76.5

Total Non-Trade Accounts Receivable

(47.2)

Less Allowance for R&D Tax Benefit

53.1

Other¹

16.8

Trade Agreements, Cogen

Operations, and Partnerships

18.9

Road Credits

$34.9

Sales Tax Credits

(485.0)

Less Accounts Sold into Securitization Program

(4.8)

Less Allowance for Doubtful Accounts

28.8

Lumber

$515.7

Newsprint and Commercial Printing Papers (CPP)

Q4 Average

1

FX Contract Receivables as of December 2007.

2

As of December 2007.

3

Includes Chemicals, Recycled Pulp and Paper, Supplies and Fuel.

4

Based on Alabama River capacity of 255,000 tons valued at Snowflake purchase price of $480 per ton.

Accounts Receivables

($ in millions)

Inventory

77.7

Lumber

$544.9

Total Inventory

$132.9

Mill Stock

(52.3)

Less Obsolescence²

3.0

Other

$182.2

Spare Parts

$199.0

Raw Materials

81.0

Supplies and Other Raw Materials³

13.6

Chips

$104.4

Roundwood²

$213.0

Finished Goods and WIP

2.3

Pulp

51.7

CPP

$81.3

Newsprint

Q4 Average

$936.3

Total

122.5

Alabama

River

Mill

4

544.9

Total Inventory

$268.9

Total Accounts Receivable

35

Abitibi Gross Asset Value Coverage

2007 Gross Asset Value Coverage

($ in millions)

2.7x

2.9x

2.9x

2.8x

2.7x

2.7x

2.6x

2.7x

2.7x

2.7x

2.7x

2.3x

1

3

1

Includes residual value of off balance sheet accounts receivable securitization.

2

Based on Alabama River capacity of 255,000 tons valued at Snowflake purchase price of $480 per ton.

3

Defined

as

$450

million

new

term

loan

less

$50

million

of

cash

paydown

from

sale

of

Snowflake

mill.

2

36

$239

$243

$248

$278

$242

$280

$317

$340

$257

$123

$123

$123

$123

$123

$123

$123

$123

$123

$123

$123

$545

$631

$653

$688

$676

$670

$694

$746

$783

$784

$728

$632

$248

$266

$333

$123

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

Inventory

Accounts Receivable

Alabama River Mill

New $400 million Term Loan

Abitibi Discounted Asset Value Coverage

2007 Discounted Asset Value Coverage

($ in millions)

1.9x

2.0x

2.1x

2.0x

1.9x

1.9x

1.8x

2.0x

2.0x

2.0x

2.0x

1.7x

2

3

1

Assumes 70% advance rate on inventory.

2

Assumes 85% advance rate on accounts receivable. Includes residual value of off balance sheet accounts receivable securitization.

3

Based on Alabama River capacity of 255,000 tons valued at Snowflake purchase price of $480 per ton discounted at 50%.

4

Defined

as

$450

million

new

term

loan

less

$50

million

of

cash

paydown

from

sale

of

Snowflake

mill.

1

4

37

$203

$206

$211

$236

$206

$238

$269

$283

$289

$218

$61

$61

$61

$61

$61

$61

$61

$61

$61

$61

$61

$61

$382

$441

$457

$482

$473

$469

$486

$523

$548

$549

$509

$442

$211

$226

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

Nov

Dec

Inventory

Accounts Receivable

Alabama River Mill

New $400 million Term Loan

Public Q&A