outlook for paper november 8, 2005 book manufacturers’ institute, inc. annual conference

Outlook for Paper

November 8, 2005 BOOK MANUFACTURERS INSTITUTE, INC. ANNUAL CONFERENCE

AgendaPaper market update

Brightness issue

Environmental issues facing publishers & paper manufacturers

Questions & answers

U.S. 2004 Printing & Writing Shipments By End UseSource: AF&PATotal Shipments 23,591,322 Tons

North American Demand by Grade(Printing & Writing Segments) (000 tons)Source: RISI/Paperloop

20052006Uncoated Freesheet% Change14,28414,2880%Uncoated Groundwood% Change6,9136,9591%Coated Freesheet% Change6,0956,1541%Coated Groundwood% Change6,5806,5800%

Key Paper Statistics(North America)Source: PPPC-4% Change YTD+1% Change

NA Line Chart

221822542273

207722212168

231424342469

218923162232

216423052211

218124082328

230924182293

23172435Aug

23422411Sep

24292396Oct

21222269Nov

21812250Dec

&A

Page &P

Source: PPPC

'000 tonnes

2003

2004

2005

NORTH AMERICAN PRINTING & WRITING SHIPMENTS

CFS Line Chart

345345339

323323342

355359390

318359322

317385325

337391379

344373374

359397Aug

378391Sep

375367Oct

317338Nov

336352Dec

&A

Page &P

Source: PPPC

'000 tonnes

2003

2004

2005

N.A. COATED FREE SHEET SHIPMENTS

UFS Line Chart

1074

980

1106

1058

1036

1040

1090

1061

1060

1111

938

1012

1062

1071

1160

1075

1028

1081

1086

1084

1029

1061

992

987

1040

991

1139

1036

1007

1025

1015

&A

Page &P

'000 tonnes

2003

N.A. UNCOATED FREE SHEET SHIPMENTS

-------------

N.A. - Chart

86%

86%

N.A. - Chart

2304

2293

11

Jul

Production vs. Shipments

UFS - Chart

2557

2548

2504

2502

2539

2505

2473

2380

2258

2191

2270

2366

2455

2475

2538

2585

2707

2742

2759

2703

2583

2468

2521

2492

2518

2465

2362

2347

2301

2220

2255

2243

2221

2246

2293

2355

2427

2500

2427

2564

2646

2618

2626

&A

Page &P

Inventories

YTD Inventories

CFS - Chart

0.850.88203125

0.890.886109762

0.890.8727488987

0.910.9091914705

0.850.8648916551

0.90.8958866545

0.920.9074349125

0.940.9050413223

0.950.9011382799

0.960.9347163695

0.90.9312694878

0.860.898266055

0.870.9045175834

0.90.909099663

0.90.9291702679

0.880.8988944724

0.840.8873567468

0.880.8941219624

0.90.9066262451

0.90.8782477341

0.940.8954483348

0.940.8927871552

0.860.8822902922

0.860.848959193

0.870.8769476486

0.920.8951463305

0.930.8910271159

0.920.9140414508

0.880.8738915401

0.950.9042358804

0.90.9130272953

0.920.9079096509

0.940.9294732476

0.910.9194949917

0.890.9178492728

0.860.8844622222

0.860.9050241971

0.90.9224169742

0.930.9070230863

0.870.9128763441

0.840.8707734057

0.90.8826030928

0.860.8641255997

&A

Page &P

Ship/Capacity

Prod/Capacity

Operating Rates

UGW - Chart

84%

85%

UGW - Chart

1033

1015

18

Jul


CGW - Chart

1515630

1471620

1422620

1404660

1401670

1379700

1382690

1336680

1287690

1258700

1316680

1372670

1421660

1436655

1446655

1444645

1466635

1456630

1435610

1403600

1399600

1350590

1379590

1364580

1365580

1307580

1219620

1198620

1152660

1152700

1189730

1186730

1209780

1240780

1291780

1334780

1351770

1377740

1294740

1336770

1341740

1353730

1371720

&A

Page &P

$/Ton

Inventories

UFS (50lb) $/Ton

YTD Inventories

----

0.90.9193820225

0.930.889039039

0.940.8981850534

0.940.92440553

0.880.8774928775

0.90.8800769971

0.910.9133486661

0.940.9003766816

0.940.8984147465

0.930.9055927602

0.860.9095151515

0.860.9072620216

0.890.9306052142

0.90.9137755102

0.910.9338607595

0.90.8991493384

0.860.8774324324

0.890.8814423077

0.90.8826605505

0.880.8534590009

0.910.91

0.920.8802520252

0.80.8332622601

0.840.8217391304

0.870.8724576271

0.950.8905695612

0.960.888

0.920.9028837209

0.850.8359435798

0.930.8981683626

0.890.912946593

0.90.8867158672

0.880.9005247813

0.880.9057115928

0.850.9039818548

0.820.854893617

0.870.9051346154

0.910.9219374369

0.950.8816066725

0.890.9054633205

0.840.8425024826

0.880.8765658537

0.840.8548965517

&A

Page &P

Ship/Capacity

Prod/Capacity

Operating Rates

UGW - Chart (Bk)

85%

78%

UGW - Chart (Bk)

342

374

-32

Jul


UGW - Pie

658760

675755

666745

661735

679725

676725

650725

606725

541725

515765

572765

584765

601800

624810

662805

678785

727780

764775

777775

758770

685765

674760

708755

701755

712750

707745

687745

679745

667745

618755

622805

605815

598880

608870

631870

657870

680870

707870

720900

781930

798900

786900

755890

&A

Page &P

Inventories

CFS (60lb #3) $/Ton

YTD Inventories

---data---

0.840.8993220339

0.860.90443769

0.860.8387362637

0.880.8677094972

0.820.8625360231

0.870.8626062323

0.910.8463471503

0.950.8455

0.970.8107828283

0.980.9728640777

0.880.9734078212

0.870.9572357724

0.840.8813913043

0.880.9426625387

0.880.9469295775

0.810.850754717

0.780.8981072555

0.860.954421365

0.850.882122093

0.890.8453760446

0.940.755978836

0.910.8396266667

0.810.866214511

0.820.8370833333

0.820.8152463768

0.840.8243962848

0.880.8309749304

0.910.8922562674

0.940.9107012987

0.990.8659335038

0.910.9197587131

0.970.9284634761

0.990.9748081841

0.90.9245231608

0.850.9204142012

0.860.9235227273

0.80.9132743363

0.870.9310526316

0.890.9196666667

0.760.892173913

0.740.7787076923

0.890.8618205805

0.850.7772727273

&A

Page &P

Ship/Capacity

Prod/Capacity

Operating Rates

TOTAL N.A.

93%

96%

$/Ton

TOTAL N.A.

502

488

14

Jul


UFS

207

220

237

244

250

233

233

249

244

212

208

221

245

218

220

233

250

251

259

252

241

215

210

200

215

227

230

231

245

252

232

257

240

288

208

207

240

252

235

248

269

260

274

&A

Page &P

Inventories

YTD Inventories

CFS

0.810.866953125

0.890.9200519481

0.870.9055528846

0.890.9051581509

0.860.8747911548

0.930.890962963

0.890.8878959811

0.90.934537246

0.950.9393736018

1.010.9461020408

0.960.9495878525

0.840.8678571429

0.80.8485488127

0.920.8571139241

0.860.8640186916

0.890.9188425926

0.850.8841607565

0.880.88

0.910.9260352423

0.930.9135761589

0.930.9070627803

0.980.928

0.950.9308295964

0.860.8410294118

0.850.8772839506

0.880.9084577114

0.90.9076595745

0.920.922021978

0.860.8871783296

0.90.913876652

0.920.9162977867

0.870.8936610879

0.980.928030303

0.960.9372781065

0.960.9328484848

0.940.9458506224

0.90.9548319328

0.940.9607505519

0.990.9805714286

0.970.9950695825

0.930.9706875

0.950.9324795082

0.930.9566803279

&A

Page &P

Ship/Capacity

Prod/Capacity

Operating Rates

UGW

85%

87%

UGW

427

416

11

Jul


CGW

184

188

187

199

214

217

208

189

185

205

182

189

187

197

211

230

264

271

288

291

258

229

224

227

225

224

227

239

237

199

206

195

173

170

163

157

157

164

178

200

239

218

226

&A

Page &P

Inventories

YTD Inventories

Line Charts

0.790.815483871

0.820.8293982808

0.780.7757837838

0.850.8761538462

0.80.832

0.880.8866

0.950.9329977629

0.980.9440172786

0.970.9634311512

0.980.9757483731

0.960.9446224256

0.850.8267412935

0.920.9156190476

0.920.9442744063

0.930.9694811321

0.870.9157894737

0.840.9134190231

0.880.8956743003

0.910.9468333333

0.960.9643243243

1.030.969279476

0.980.9388053097

0.950.9522511848

0.930.9190588235

0.920.9283257919

0.950.9477699531

0.930.9341797753

0.920.945915493

0.930.9279287305

1.030.9468322981

0.920.9407207207

0.990.9671218487

0.990.9515948276

0.960.951670282

0.950.9350561798

0.890.8754778555

0.860.8579425837

0.870.8859424084

0.850.876626506

0.790.8367204301

0.820.89995

0.930.8853089245

0.850.8724759615

&A

Page &P

Ship/Capacity

Prod/Capacity

Operating Rates

-----

UGW-Level 1

Yr/Yr Comparison

High-Bright9%12%

GLT Book20%3%

UGW-Level 1

342420

386434

109.436112.705

2004

2005

Shipments - YTD(July)

5854

5459

15.65818.811

2004

2005

Shipments - Yr/Yr(July)

364714.401

445016.299

496018.362

576013.445

476114.255

515417.016

585415.658

525216.041

495718.319

495115.062

545213.21

474913.456

535713.953

575715.451

676416.11

736414.087

577115.732

596218.561

545918.811

&A

Page &P

Super-Bright

High-Bright

GLT BOOK

Shipments Trends

Basis WtBrightnessSmoothness

Super-Bright>27#>74Super Calendar

High-Bright>27#64< x27#

Key Paper Statistics Continued

Chart3

1515630

1471620

1422620

1404660

1401670

1379700

1382690

1336680

1287690

1258700

1316680

1372670

1421660

1436655

1446655

1444645

1466635

1456630

1435610

1403600

1399600

1350590

1379590

1364580

1365580

1307580

1219620

1198620

1152660

1152700

1189730

1186730

1209780

1240780

1291780

1334780

1351770

1377740

1294740

1336770

1341740

1353730

1371720

$/Ton

Inventories

UFS (50lb) $/Ton

YTD Inventories

NA Line Chart

221822542273

207722212168

231424342469

218923162232

216423052211

218124082328

230924182293

23172435Aug

23422411Sep

24292396Oct

21222269Nov

21812250Dec

&A

Page &P

Source: PPPC

'000 tonnes

2003

2004

2005

NORTH AMERICAN PRINTING & WRITING SHIPMENTS

CFS Line Chart

345345339

323323342

355359390

318359322

317385325

337391379

344373374

359397Aug

378391Sep

375367Oct

317338Nov

336352Dec

&A

Page &P

Source: PPPC

'000 tonnes

2003

2004

2005

N.A. COATED FREE SHEET SHIPMENTS

UFS Line Chart

1074

980

1106

1058

1036

1040

1090

1061

1060

1111

938

1012

1062

1071

1160

1075

1028

1081

1086

1084

1029

1061

992

987

1040

991

1139

1036

1007

1025

1015

&A

Page &P

Source: PPPC

'000 tonnes

2003

N.A. UNCOATED FREE SHEET SHIPMENTS

-------------

N.A. - Chart

86%

86%

N.A. - Chart

2304

2293

11

Jul


UFS - Chart

2557

2548

2504

2502

2539

2505

2473

2380

2258

2191

2270

2366

2455

2475

2538

2585

2707

2742

2759

2703

2583

2468

2521

2492

2518

2465

2362

2347

2301

2220

2255

2243

2221

2246

2293

2355

2427

2500

2427

2564

2646

2618

2626

&A

Page &P

Inventories

YTD Inventories

CFS - Chart

0.850.88203125

0.890.886109762

0.890.8727488987

0.910.9091914705

0.850.8648916551

0.90.8958866545

0.920.9074349125

0.940.9050413223

0.950.9011382799

0.960.9347163695

0.90.9312694878

0.860.898266055

0.870.9045175834

0.90.909099663

0.90.9291702679

0.880.8988944724

0.840.8873567468

0.880.8941219624

0.90.9066262451

0.90.8782477341

0.940.8954483348

0.940.8927871552

0.860.8822902922

0.860.848959193

0.870.8769476486

0.920.8951463305

0.930.8910271159

0.920.9140414508

0.880.8738915401

0.950.9042358804

0.90.9130272953

0.920.9079096509

0.940.9294732476

0.910.9194949917

0.890.9178492728

0.860.8844622222

0.860.9050241971

0.90.9224169742

0.930.9070230863

0.870.9128763441

0.840.8707734057

0.90.8826030928

0.860.8641255997

&A

Page &P

Ship/Capacity

Prod/Capacity

Operating Rates

UGW - Chart

84%

85%

UGW - Chart

1033

1015

18

Jul


CGW - Chart

1515630

1471620

1422620

1404660

1401670

1379700

1382690

1336680

1287690

1258700

1316680

1372670

1421660

1436655

1446655

1444645

1466635

1456630

1435610

1403600

1399600

1350590

1379590

1364580

1365580

1307580

1219620

1198620

1152660

1152700

1189730

1186730

1209780

1240780

1291780

1334780

1351770

1377740

1294740

1336770

1341740

1353730

1371720

&A

Page &P

$/Ton

Inventories

UFS (50lb) $/Ton

YTD Inventories

----

0.90.9193820225

0.930.889039039

0.940.8981850534

0.940.92440553

0.880.8774928775

0.90.8800769971

0.910.9133486661

0.940.9003766816

0.940.8984147465

0.930.9055927602

0.860.9095151515

0.860.9072620216

0.890.9306052142

0.90.9137755102

0.910.9338607595

0.90.8991493384

0.860.8774324324

0.890.8814423077

0.90.8826605505

0.880.8534590009

0.910.91

0.920.8802520252

0.80.8332622601

0.840.8217391304

0.870.8724576271

0.950.8905695612

0.960.888

0.920.9028837209

0.850.8359435798

0.930.8981683626

0.890.912946593

0.90.8867158672

0.880.9005247813

0.880.9057115928

0.850.9039818548

0.820.854893617

0.870.9051346154

0.910.9219374369

0.950.8816066725

0.890.9054633205

0.840.8425024826

0.880.8765658537

0.840.8548965517

&A

Page &P

Ship/Capacity

Prod/Capacity

Operating Rates

UGW - Chart (Bk)

85%

78%

UGW - Chart (Bk)

342

374

-32

Jul


UGW - Pie

658760

675755

666745

661735

679725

676725

650725

606725

541725

515765

572765

584765

601800

624810

662805

678785

727780

764775

777775

758770

685765

674760

708755

701755

712750

707745

687745

679745

667745

618755

622805

605815

598880

608870

631870

657870

680870

707870

720900

781930

798900

786900

755890

&A

Page &P

Inventories

CFS (60lb #3) $/Ton

YTD Inventories

---data---

0.840.8993220339

0.860.90443769

0.860.8387362637

0.880.8677094972

0.820.8625360231

0.870.8626062323

0.910.8463471503

0.950.8455

0.970.8107828283

0.980.9728640777

0.880.9734078212

0.870.9572357724

0.840.8813913043

0.880.9426625387

0.880.9469295775

0.810.850754717

0.780.8981072555

0.860.954421365

0.850.882122093

0.890.8453760446

0.940.755978836

0.910.8396266667

0.810.866214511

0.820.8370833333

0.820.8152463768

0.840.8243962848

0.880.8309749304

0.910.8922562674

0.940.9107012987

0.990.8659335038

0.910.9197587131

0.970.9284634761

0.990.9748081841

0.90.9245231608

0.850.9204142012

0.860.9235227273

0.80.9132743363

0.870.9310526316

0.890.9196666667

0.760.892173913

0.740.7787076923

0.890.8618205805

0.850.7772727273

&A

Page &P

Ship/Capacity

Prod/Capacity

Operating Rates

TOTAL N.A.

93%

96%

$/Ton

TOTAL N.A.

502

488

14

Jul


UFS

207

220

237

244

250

233

233

249

244

212

208

221

245

218

220

233

250

251

259

252

241

215

210

200

215

227

230

231

245

252

232

257

240

288

208

207

240

252

235

248

269

260

274

&A

Page &P

Inventories

YTD Inventories

CFS

0.810.866953125

0.890.9200519481

0.870.9055528846

0.890.9051581509

0.860.8747911548

0.930.890962963

0.890.8878959811

0.90.934537246

0.950.9393736018

1.010.9461020408

0.960.9495878525

0.840.8678571429

0.80.8485488127

0.920.8571139241

0.860.8640186916

0.890.9188425926

0.850.8841607565

0.880.88

0.910.9260352423

0.930.9135761589

0.930.9070627803

0.980.928

0.950.9308295964

0.860.8410294118

0.850.8772839506

0.880.9084577114

0.90.9076595745

0.920.922021978

0.860.8871783296

0.90.913876652

0.920.9162977867

0.870.8936610879

0.980.928030303

0.960.9372781065

0.960.9328484848

0.940.9458506224

0.90.9548319328

0.940.9607505519

0.990.9805714286

0.970.9950695825

0.930.9706875

0.950.9324795082

0.930.9566803279

&A

Page &P

Ship/Capacity

Prod/Capacity

Operating Rates

UGW

85%

87%

UGW

427

416

11

Jul


CGW

184

188

187

199

214

217

208

189

185

205

182

189

187

197

211

230

264

271

288

291

258

229

224

227

225

224

227

239

237

199

206

195

173

170

163

157

157

164

178

200

239

218

226

&A

Page &P

Inventories

YTD Inventories

Line Charts

0.790.815483871

0.820.8293982808

0.780.7757837838

0.850.8761538462

0.80.832

0.880.8866

0.950.9329977629

0.980.9440172786

0.970.9634311512

0.980.9757483731

0.960.9446224256

0.850.8267412935

0.920.9156190476

0.920.9442744063

0.930.9694811321

0.870.9157894737

0.840.9134190231

0.880.8956743003

0.910.9468333333

0.960.9643243243

1.030.969279476

0.980.9388053097

0.950.9522511848

0.930.9190588235

0.920.9283257919

0.950.9477699531

0.930.9341797753

0.920.945915493

0.930.9279287305

1.030.9468322981

0.920.9407207207

0.990.9671218487

0.990.9515948276

0.960.951670282

0.950.9350561798

0.890.8754778555

0.860.8579425837

0.870.8859424084

0.850.876626506

0.790.8367204301

0.820.89995

0.930.8853089245

0.850.8724759615

&A

Page &P

Ship/Capacity

Prod/Capacity

Operating Rates

-----

UGW-Level 1

Yr/Yr Comparison

High-Bright9%12%

GLT Book20%3%

UGW-Level 1

342420

386434

109.436112.705

2004

2005

Shipments - YTD(July)

5854

5459

15.65818.811

2004

2005

Shipments - Yr/Yr(July)

364714.401

445016.299

496018.362

576013.445

476114.255

515417.016

585415.658

525216.041

495718.319

495115.062

545213.21

474913.456

535713.953

575715.451

676416.11

736414.087

577115.732

596218.561

545918.811

&A

Page &P

Super-Bright

High-Bright

GLT BOOK

Shipments Trends

Basis WtBrightnessSmoothness

Super-Bright>27#>74Super Calendar

High-Bright>27#64< x27#

Current State of the BusinessDeclining Demand trendIncreasing cost over timeGlobal over capacityInability to influence price due to grade/technology substitution

Lack of profitability within the paper industry has been a mandate for change*Estimate*May 05 Estimate

*

Average Profitability for U.S. Printing and Writing Paper Mills

Profitability defined as (price-cost)/cost. Costs are total costs including depreciation, interest, SG&A, and delivery

Industry SegmentationLargeProducersSmallProducersCommodity productsGlobal focusMass marketsSlow responseInternally focusedManufacturing-centric

Limited capabilitiesSmall, high-cost millsRegional focusFinancially unstableLimited product rangeGlatfelterHigh-value, niche marketsCustomer-centricGlobal focusRelentless cost reductionFinancially strong

Glatfelters unique focus offers the Company the best of both worlds.

What Factors Influence Paper Prices?Economic Growth Paper consumption follows GDP growth. Rising economic growth stimulates increasing demand for paper.

Exchange Rates Import/Export balance. As US $ strengthens, it becomes easier to export paper to U.S.

Capacity utilization Operating rates above 91-92% utilization signals price increase. Capacity changes relative to demand changes drive utilization rates.

Substitute products / technologies High-Bright groundwoods have penetrated freesheet markets. Mail volume, office repro volume being impacted by internet

06 OutlookFactorTrend Price Impact

DemandU.S. GDP growth is decelerating2005 20063.6% 3.3%Rising CostsEnergy, Fuel, Chemicals increasingPostal Rate HikeFirst class + 4%Fewer mail piecesLower catalog circulationLost share to substitute technology/internetElectric bill payment, e-mailCapacity ChangesExcess capacity is being shut down638M Tons permanently shut in 05

The Brightness IssueCommodity white papers are moving from 84 92 brightness, beginning in Sept. 05

Why? Competition on a global scale Quality distinction Vs Groundwood

Impact on Paper BuyersOne choice from commodity producers (illustrates the commodity segment focus)

Opaque markets will be affectedSubstitute 92 offset for 94 opaqueNew opaque level - 96

Glatfelter Response to Brightness InitiativeFocus on customer choice

Input from book publishing customers indicating a preference for current brightness levels

Thor plus 92

Thor 84

* Demand will determine availability

Future ImpactInventory management

Cost implications of manufacturing brighter paper

Quality of recovered fiber as input to recycled paper is unknown

Color consistency in cream papers

Environmental Issues Facing Publishers and Paper ManufacturersGrowing interest among large consumers toward environmental leadership

Large consumers seeking suppliers with similar environmental philosophies

An increasing preference for certified paper products

Environmentalist pressure is succeeding

Most environmental education comes from activist groups

Environmental issues will become more important

Keystone Issues Of Environmentally Preferable PaperReduced consumption

Restricted fiber sourcingNo old growth / endangered forestsNo U.S. Public landsNo conversion to plantationsNo GMOsNo pesticides, herbicides, fertilizersIncreased recycled content (emphasis on PCW)

Clean production (emphasis on TCF)

Forestry practices certified (to FSC standards)

US Recovered Paper Life Cycle2003 Data (000s Tons)Recovered Paper 49,253Total Supply of Fiber 98,011Source: AF&PA 2004 U.S. Recovered Paper Statistical HighlightsSources of Recovered FiberUses of Recovered FiberEnd Uses of Recovered Fiber Consumed at Paper MillsConsumed at Paper & Board Mills 33,650Export 13,80549%19%20%7%5%Other 2,200 Imports 399TissuePrinting & WritingRecycled PaperboardContainerboardNewsprint12%25%47%5%10%1% (pkg)

Sheet2

s

LandFill Chart

33.936.3

35.438.4

39.738.1

42.236.1

43.134.3

4437.2

4538.4

46.841.2

47.339.5

4735.8

47.637.5

49.337.7

Million Tons

CAGR 99-03: +2%

CAGR 99-03: -2%

Recovered Paper

Paper To Landfill

More paper is recovered for recycling than is landfilled

Recovered Stats

4925348758

Recovered Paper

Not Recovered

Recovered Paper49,253

Total Supply 98,011

Sources of Fiber

TotalTotalTotalTotalTotalTotalTotalTotal49253

2400020009400200097002000340020002700

49,253

Old Corrugated

Filler 1

Old News Papers

Filler 2

Mixed Paper

Filler 3

High Grade De-Inked

Filler 4

Pulp Substitutes

TOTAL RECOVERED FIBER

Old Corrugated

Old News Papers

Mixed Paper

High Grade De-Inked

Pulp Substitutes

Data

LANDFILL ISSUE

Tons199219931994199519961997199819992000200120022003CAGR: 99-03Var 99-03

Recovered Paper33.935.439.742.243.1444546.847.34747.649.31.3%5%

Paper To Landfill36.338.438.136.134.337.238.441.239.535.837.537.7-2.2%-8%

RECOVERED PAPER STATSRecovered PaperNot RecoveredTotal Supply

200349,25348,75898,011

50.3%

Sources of FiberFiller 0Old CorrugatedFiller 1Old News PapersFiller 2Mixed PaperFiller 3High Grade De-InkedFiller 4Pulp Substitutes

Total49253

Sources50002400020009400200097002000340020002700

Sheet2

s

LandFill Chart

33.936.3

35.438.4

39.738.1

42.236.1

43.134.3

4437.2

4538.4

46.841.2

47.339.5

4735.8

47.637.5

49.337.7

Million Tons

CAGR 99-03: +2%

CAGR 99-03: -2%

Recovered Paper

Paper To Landfill


Recovered Stats

4925348758

Recovered Paper

Not Recovered


Total Supply 98,011

Sources of Fiber


2400020009400200097002000340020002700

24,000

9,400

9,700

3,400

2,700

49,253

Old Corrugated

Filler 1

Old News Papers

Filler 2

Mixed Paper

Filler 3

High Grade De-Inked

Filler 4

Pulp Substitutes

Old Corrugated


Old News Papers

Mixed Paper

High Grade De-Inked

Pulp Substitutes

uses of recovered fiber 2003 da

49255TotalTotalTotalTotalTotalTotalTotal

336505000138052000220020003992000

(000 tons)37% of all fiber consumed by U.S. Paper industry comes from recovered fiber.

49,255

Consumed at Paper and Board Mills

Filler 0

Export

Filler 1

Other

Filler 2

Imports

Filler 3

consumed of us paperboard mills

TotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotal33650

500017892000406120008321200015732200041720003330

Filler 0

Printing & writing

Filler 1

Tissue

Filler 2

Recycled Paperboard

Filler 3

Containerboard

Filler 4

Packaging

Filler 5

Newsprint

P&W Paper Recovery

12210TotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotal31016

Sources50001340200024020002650200022502000100020004730

Recovered

Filler 0

P&W 11%

Filler 1

Newsprint

Filler 2

Tissue

Filler 3

Paperboard

Filler 4

Other

Filler 5

Exports

Printing & Writing Papers Recovery

paper industry

49255TotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotal98011

Sources33650500013805200022002000399SourcesSourcesSourcesSourcesSourcesSourcesSourcesSourcesSourcesSourcesSourcesSources

End productsEnd productsEnd productsEnd productsEnd productsEnd productsEnd productsEnd products200010000.820004000.220007000.920001500.5200010000.520003000.5

Recovered

Consumed

filler 10

export

filler 11

other

filler 12

imports

Filler 0

P&W

Filler 1

Tissue

Filler 2

Paperboard

Filler 3

Containerboard

Filler 4

Packaging

Filler 5

Newsprint

Data

LANDFILL ISSUE

Tons199219931994199519961997199819992000200120022003CAGR: 99-03Var 99-03

Recovered Paper33.935.439.742.243.1444546.847.34747.649.31.3%5%



200349,25348,75898,011

50.3%


Total49253

Sources50002400020009400200097002000340020002700

Uses of Recovered Fiber 2003 dataFiller 0ImportsFiller 1OtherFiller 2ExportFiller 3Consumed at Paper and Board Mills

Total49255

Sources500039920002200200013805200033650

Uses of Recovered FiberFiller 0Printing & writingFiller 1TissueFiller 2Recycled PaperboardFiller 3ContainerboardFiller 4PackagingFiller 5Newsprint

Total33650

Sources500017892000406120008321200015732200041720003330

Printing & Writing PaperRecoveredFiller 0P&W 11%Filler 1NewsprintFiller 2TissueFiller 3PaperboardFiller 4OtherFiller 5Exports

Total1221031016

Sources50001340200024020002650200022502000100020004730

U.S. Paper IndustryRecoveredConsumedfiller 10exportfiller 11otherfiller 12importsFiller 0P&WFiller 1TissueFiller 2PaperboardFiller 3ContainerboardFiller 4PackagingFiller 5Newsprint

Total4925598011

Sources33650500013805200022002000399

End products200010000.820004000.220007000.920001500.5200010000.520003000.5

Sheet2

s

LandFill Chart

33.936.3

35.438.4

39.738.1

42.236.1

43.134.3

4437.2

4538.4

46.841.2

47.339.5

4735.8

47.637.5

49.337.7

Million Tons

CAGR 99-03: +2%

CAGR 99-03: -2%

Recovered Paper

Paper To Landfill


Recovered Stats

4925348758

Recovered Paper

Not Recovered


Total Supply 98,011

Sources of Fiber


2400020009400200097002000340020002700

24,000

9,400

9,700

3,400

2,700

49,253

Old Corrugated

Filler 1

Old News Papers

Filler 2

Mixed Paper

Filler 3

High Grade De-Inked

Filler 4

Pulp Substitutes

Old Corrugated


Old News Papers

Mixed Paper

High Grade De-Inked

Pulp Substitutes

uses of recovered fiber 2003 da

49255TotalTotalTotalTotalTotalTotalTotal

336505000138052000220020003992000

(000 tons)37% of all fiber consumed by U.S. Paper industry comes from recovered fiber.

49,255

399 Imports

2,200 Other

Export 13,805

33,650Consumed at Paper and Board Mills

Consumed at Paper and Board Mills

Filler 0

Export

Filler 1

Other

Filler 2

Imports

Filler 3

consumed of us paperboard mills

TotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotal33650

1000178950040615008321500157325004175003330

33,650

(000 tons)2003 Data

Filler 0

Printing & writing

Filler 1

Tissue

Filler 2

Recycled Paperboard

Filler 3

Containerboard

Filler 4

Packaging

Filler 5

Newsprint

P&W Paper Recovery

12210TotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotal31016

Sources50001340200024020002650200022502000100020004730

Recovered

Filler 0

P&W 11%

Filler 1

Newsprint

Filler 2

Tissue

Filler 3

Paperboard

Filler 4

Other

Filler 5

Exports

Printing & Writing Papers Recovery

paper industry

49255TotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotalTotal98011

Sources33650500013805200022002000399SourcesSourcesSourcesSourcesSourcesSourcesSourcesSourcesSourcesSourcesSourcesSources

End productsEnd productsEnd productsEnd productsEnd productsEnd productsEnd productsEnd products200010000.820004000.220007000.920001500.5200010000.520003000.5

Recovered

Consumed

filler 10

export

filler 11

other

filler 12

imports

Filler 0

P&W

Filler 1

Tissue

Filler 2

Paperboard

Filler 3

Containerboard

Filler 4

Packaging

Filler 5

Newsprint

Data

LANDFILL ISSUE

Tons199219931994199519961997199819992000200120022003CAGR: 99-03Var 99-03

Recovered Paper33.935.439.742.243.1444546.847.34747.649.31.3%5%



200349,25348,75898,011

50.3%


Total49253

Sources50002400020009400200097002000340020002700

Uses of Recovered Fiber 2003 dataFiller 0ImportsFiller 1OtherFiller 2ExportFiller 3Consumed at Paper and Board Mills

Total49255

Sources500039920002200200013805200033650

Uses of Recovered FiberFiller 0Printing & writingFiller 1TissueFiller 2Recycled PaperboardFiller 3ContainerboardFiller 4PackagingFiller 5Newsprint

Total33650

Sources1000178950040615008321500157325004175003330

Printing & Writing PaperRecoveredFiller 0P&W 11%Filler 1NewsprintFiller 2TissueFiller 3PaperboardFiller 4OtherFiller 5Exports

Total1221031016

Sources50001340200024020002650200022502000100020004730

U.S. Paper IndustryRecoveredConsumedfiller 10exportfiller 11otherfiller 12importsFiller 0P&WFiller 1TissueFiller 2PaperboardFiller 3ContainerboardFiller 4PackagingFiller 5Newsprint

Total4925598011

Sources33650500013805200022002000399

End products200010000.820004000.220007000.920001500.5200010000.520003000.5

Chart1

4925348758

Recovered paper

Total Supply

Sheet1

Total Supply

4875898011

Recovered paper

49253

Sheet1

Recovered paper

Total Supply

Sheet2

Sheet3

Recovered Fiber Prices(Transaction Prices, May 05)$50-60$50-60$75-80$185-195$310-340Mixed De-Inked News OCC White Ledger Envelope NBSK PulpPaper PCW Pulp(Printed) Cuts$510-560Source: ForestWeb$480-510$/Short TonContaminated Clean

Chart1

555605575185310500

Mixed Paper

De-Inked PCW Pulp

News (Printed)

OCC

White Ledger

Envelope Cuts

NBSK Pulp

Sheet1

Paper Prices

Mixed Paper55

De-Inked PCW Pulp560

News (Printed)55

OCC75

White Ledger185

Envelope Cuts310

NBSK Pulp500

Sheet1

Mixed Paper

News (Printed)

OCC

White Ledger

Envelope Cuts

NBSK Pulp

De-Inked PCW Pulp

Sheet2

Sheet3

Forestry Certification SystemsAddressing the Issues

Sustainable forestry initiative (SFI) 144 million acres in US & CAN

Forestry stewardship council (FSC) 23 million acres in US & CAN

Canadian standards association (CSA) 64 million acres in CAN

In U.S., SFI is most prolific, with more than 93 million acres certified. Only 8 million acres of U.S. Forestland are FSC certified

Different approaches to achieving results:GovernanceAccreditationVerificationTracking & labeling

The SFI program is the largest certification program in the U.S. and Canada with over 150 million acres enrolled and 129 million acres independently third party certified. Governed by 15-member Board, mandating:9 Principles13 Objectives34 Performance Measures103 Operational Indicators

3rd party certification requirement for any program participant wishing to utilize on-product labeling. Certification involves examination of procedures, forestry practices and in-the-field assessments.

As a condition of membership, every AF&PA member company must manage forests and be certified according to SFI.SFI ProgramAddressing the issues

EPP Costs and Availability(Estimates)AvailabilityPlentifulScarceLowHighCostPCWFSCTCFECFSFI

Chart3

0.45315050

TCF

FSC

PCW

ECF

SFI

Sheet1

TCF190.45

FSC263

PCW1.521

ECF8150

SFI10150

Sheet1

TCF

FSC

PCW

ECF

SFI

Sheet2

Sheet3

What Should Publishers Do?Managing the Risk

Consider ENGO impact on your organization

Do your homework: talk to suppliers & other stakeholders

Assess the importance of your organizations reputation or mission

Consider developing an environmental policy

Arm yourself with information and create a strategy that is defensible, sustainable and accountableCopyright (2005) Glatfelter

Glatfelters Environmental CommitmentWe plant 1.5 million trees per year (4 for every one we harvest)Since 1946 GLT has planted and donated 147 million treesFirst paper mill in North America to achieve ISO 14001 certificationEnergy self-sufficient: Co-generation power (utilize 40% biomass)Environmental partnerships MinergyNew Century Project Investment of $36.8 MillionOzone bleachingOxygen delignificationElemental Chlorine Free (ECF)

All Glatfelter-owned forest lands are 3rd party certified to SFI standards Glatfelter does not utilize fiber derived from ancient or endangered forests

Glatfelter Product SolutionsAll Neenah papers include recycled content

Question & Answer

outlook for paper november 8, 2005 book manufacturers’ institute, inc. annual conference

Documents

uncoated free sheet

afpatotal shipments

uncoated groundwood

gradeprinting writing

american demand

book manufacturers institute

end usesource

change ytd