IMPROVED NEWSPRINT FOR HIGH-VALUE PRODUCTS. Ian Hamilton, Area Sales Director, South East Asia, UPM Asia Pacific PTE LTD

Transcription

1 IMPROVED NEWSPRINT FOR HIGH-VALUE PRODUCTS Ian Hamilton, Area Sales Director, South East Asia, UPM Asia Pacific PTE LTD

2 CONTENT 1 CHANGE IN MEDIA WORLD 2 PULL FOR PAPER 3 PUSH FOR PAPER 4 WHAT DOES IT TAKE?

3 CHANGE IN MEDIA WORLD CHANGE IN PAPER WORLD The papermaker s view

4 Newsprint demand development 12 North America Europe 10 Mt Demand development North America 35 kg/capita Demand per capita 30 Asia and Middle East Western Europe China 2 India 0 10 Asia and Middle East 5 China India 0 Eastern Europe 4 UPM

5 Advertising expenditure development 250 US$, billion Europe North America Asia Pacific Other Internet 50 TV 0 Newspaper Magazine UPM Source: ZenithOptimedia, March 2018 In currency USD, Other: Cinema, Radio, Outdoor

6 Internet share of advertising expenditure 70% 60% 50% 40% 30% 20% 10% UK China USA Germany India 0% UPM Source: ZenithOptimedia, March 2018

7 Newsprint demand and direct marketing Demand development in Europe Direct marketing development 110 Index 2011=100 Improved news 110 Index 2011= US Total direct mail ( SC 80 Europe Direct marketing ( Standard news UPM 1) Source: Eurograph, UPM, Paper demand for direct marketing 2) Source: DMA Statistical Fact Pack 2017 & USPS, Total number of Direct mail pieces in the US

8 Paper grades by end uses in Europe Share 100 % Direct marketing Magazine publishing Standard newsprint Book & Directories Improved newsprint & other uncoated mechanical SC Newspaper publishing 8 UPM 0 % e e e Source: Euro-Graph, UPM

9 PULL FOR PAPER

10 Direct mail gives people time to think Length of time direct mail advertising is kept at consumers' homes A few days About a week About a month Not applicable, I never keep these Flyers from grocery stores 36% 46% 1% 17% Flyers from other retailers 41% 18% 2% 39% Coupons for fast food 16% 8% 53% 23% Catalogues 16% 7% 35% 42% 10 UPM Share of respondents Source: Canada Post 2015

11 Print media the most sustainable choice ICTs have been estimated to contribute 2 to 2.5% of the global greenhouse gas (GHG) emissions. [1] With 1% of the emissions, the value chain of pulp, paper and print is one of the lowest industrial emitters. [2] Reported e-waste recycling rate varies between the regions: 35% in Europe, 17% in Americas and 15% in Asia. [1] The global paper recycling rate stands at about 58%. [3] The European recycling rate for paper has reached 72,5%. [4] 11 UPM Source: [1] tps:// [2] Two Sides [3]. [4]

12 Print is trusted Newspapers Broadcast TV Radio Facebook Source of news 74% 66% 68% 27% Source of advertising 82% 80% 71% 43% 12 UPM Source: [1] [2] Marketingsherpa 2016

13 PUSH FOR PAPER

14 Newspaper publishers print vs. digital revenues 100 Print vs. digital % share of publishers revenues Digital 13% % Print 87% 0 14 UPM Source: PWC media outlook

15 Basis weight development Average basis weight, Western Europe g/m2 SC Improved newsprint Basis weight distribution, Western Europe in 2016, g/m 2 Standard newsprint 48, 8 45 Improved newsprint SC Standard newsprint 42, 5 48, UPM '16 <45 '16 45 '16 Source: Euro-Graph

16 Impact of recent newsprint capacity closures Newsprint volume change in Europe and North America , million tons Demand decline Capacity change Gap -5,4 Mt -6,8 Mt 1,4 Mt Supply reduction > demand decline 16 UPM

17 Global printing output development Publishing Graphics Labels & packaging UPM Source: Smithers Pira 2017

18 Huge decline in investments CSWO being hit the hardest M /a Global order volume for web offset presses, M /a HSWO presses CSWO presses CSWO + HSWO total 18 UPM Source: manroland web systems GmbH

19 Improved newsprint Value added CSWO papers Case: Super bright UPM Brite De Telegraaf switched their supplements from standard newsprint to super bright improved newsprint in magazine format. What did they achieve? The former insert become a real magazine The new magazine has a longer life cycle De Telegraaf was able to create a well-known and separate brand 19 UPM

20 CSWO paper range is expanding and crossing traditional borders Printability Smoothness SC HSWO / RG SC CSWO Advanced printability Higher bulk for stiffness and haptics CTD Mech CSWO Improved news Traditional CSWO paper portfolio Std newsprint 20 UPM Bulk Absorption Haptics & Readability Fit for CSWO process

21 WHAT DOES IT TAKE?

22 Incremental is enough! 22 UPM

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