ERA Annual Conference Torino 25.09.2012 ::::::::::::::::::::::::::::::::::::::::: :::::::::::::::: A. De Matthaeis, Managing Director Paper trends and industry welcomes response you
Contents Burgo Group profile Paper trends Industry response 2
Burgo Group profile 3
Burgo Group is not only one of the European s leading producers of coated papers 4
Sales composition 2010 2011 5
Burgo Paper Turnover by Destination ROW 13% OTHER EUROPE 43% ITALY 44% 2011 : 2,5 million tons 6
Energy The Group has been building high performance power production plants, among which: 12 gas turbine combined cycle co-generation plants 3 plants using biomasses at Burgo Ardennes, Mantova and Verzuolo 2 hydroelectric power stations Total Production Capacity: 3.1 TWh 7
Energy Sales evolution turnover /000 600.000 BURGO ENERGIA Turnover per Business unit - 500.000 400.000 300.000 200.000 Others GAS EE Captive EE Trading EE wholesale 100.000-2009 2010 2011 2012 forecast 8
We also produce fibrous raw materials Production capacity 2012: 915 kt mechanical pulp 38% 345 kt chemical pulp 44% 400 kt de-inked pulp 18% 170 kt 9
Our core business is coated papers Production capacity 2012: 2.7 Mln/t uncoated 7% 177 kt specialty 5% 147 kt newsprint 6% 160 kt coated mechanical 40% 1,079 kt core business 82% coated woodfree 42% 1,124 kt 10
One of Europe s leading producers Coated mechanical production capacity (kt/y) 11
Among the leaders in Europe Coated woodfree production capacity (kt/y) 12
Paper trends 13
World Demand : Stable Million tons 110 World Printing & Writing Demand 100 104,9-1.9% -1.2% 0.0% 0.9% 90 94,1 92,9 92,9 93,7 80 70 06 07 08 09 10 11 12 13 14 Source: PPPC 14
W.E. Demand to lose 8% in 2011-14 Million tons 36 W.E. P&W Demand and Deliveries 33 30-2.5% -3.7% -2.0% -0.7% 27 24 21 18 28,0 Demand Deliveries -5.4% 22,6-4.4% -3.0% -1.0% 21,6 21,0 20,8 06 07 08 09 10 11 12 13 14 Source: PPPC 15
Demand in Western Europe 9,0% 3,9% -2,7% -1,2% 2010 2011-5,2% -5,0% -6,0% YTD July 2012-8,9% -8,2% CM SC CW Source : PPPC 16
Industry response 17
As manufacturers, in order to improve profitability we focus on efficiency operating rate product innovation enhancement of print and paper value 18
CW market slowdown to lower balance W.E. CW Delivery-to-Capacity ratio 100% 95% 90% 85% 84% 87% 86% 86% 80% 75% 06 07 08 09 10 11 12 13 14 Source: PPPC 19
CM balance remains on the 90% level W.E. CMR Delivery-to-Capacity ratio 100% 95% 90% 88% 90% 90% 90% 85% 80% 75% 70% 06 07 08 09 10 11 12 13 14 Source: PPPC 20
Burgo product innovations Paper recycled content Bulky paper High specs for «top end» uses Digital printing 21
Growing interest towards recycled content in graphic papers We have focused on CWF, creating a brand with up to 100% recycled content 22
Customer need: to compensate low pagination with bulky paper We have designed papers with desired bulk with an excellent surface CWF R4 bulky (1.1) LWC web offset Uno Web White satin (1.0) LWC Gravure Uno Roto Extra White bulky (1.0) 23
Customer need: to enhance the value perception of the printed matter We have developed coated mechanical offer LWC Gravure MWC Uno Roto Extra White (very high brightness and shade improvement) Focused on «top end» magazines 24
Shorter printing runs and personalization needs are driving Digital printing business Burgo is launching a new Coated paper range, specifically finished for digital laser printing. Burgo brand products Experia Digi Respecta 100 Digi Fiber content FSC certified FSC certified and 100% PCW 25
Enhancement of print and paper value Print Power and Two Sides projects 26
Enhancement of print and paper value GOALS. Brand owners must be aware of the unique values offered by print and paper.. The Public must be informed with facts that blames widely attributed to paper are myths. 27
Enhancement of print and paper value STRATEGY The whole value chain is concentrating jointly on a common project. 28
Two Complementary messages Printed media are effective Print and paper are sustainable Buyers and Media planners Marketing depts CSR, ADV agencies, General public and Institutions 29
Print Power project in Europe 30
source: IPSOS Synovate April 2012 31
Italian B2C initiative through Mondadori, Arvato, Burgo 350,000 copies of Myths and Facts brochure, which dispel common environmental misconceptions, providing users with verifiable information on why Print and Paper is a sustainable communications medium Printed for free by Arvato on Burgo Respecta 100 paper, Distributed in April 2012 together with Donna Moderna 32
Also the consumers have been investigated 33
A Pan-European campaign has been created 34
Paper and Print fit into the future. The future of business, and the future of the planet. Thank you! 35