2010 RISI SEMINAR

KEYNOTE ADDRESS

~ José Honório, CEO, Grupo Portucel Soporcel

What Does the Future Hold for the Global Pulp & Paper Sector?

~ Rod Young, Chief Economic Advisor, RISI

Based on RISI's industry leading forecast and analysis information, Rod will give an overview of the pulp and paper sector worldwide. This presentation will cover:

• An overview of each of the major producing regions
• A short term outlook for different pulp and paper grades
• Insights into the challenges and obstacles facing the P&P sector
• A look at increasingly global markets and new competitive threats

Fiber Vision 2020 – Perspective on Pulp and Recycled Paper Markets

~ Glen O'Kelly, Specialist, Basic Materials Institute, McKinsey & Company

Global demand for fiber is growing strongly, fueled mainly by rapid expansion of paper and paperboard capacity in Asia and increased separation of pulp and paper production. There is also a shift in fiber usage, with recycled fiber growing more strongly than pulp, and softwood pulp losing share to hardwood pulp. This presentation will cover:

• The dramatic supply response required to meet increased demand
• Structural changes in fiber supply and regional supply constraints
• Regional wood availability and sustainability issues and their impact on pulp supply
• Potential discontinuities and their impact on fiber markets

Coffee Break

The Impact of Energy Costs on the Global Pulp and Paper Industry

~ Ville Henttonen, Product Manager, Benchmarking, RISI

Energy costs play a crucial part in the overall profitability of pulp and paper mills today. This presentation will cover:

• A look at estimated energy usage and costs in pulp and paper mills
• A focus on the highly characteristic regional differences from a global perspective
• An examination of internal energy usage including black liquor, rejects and electricity co-generation
• An overview of the increasingly important subject of carbon emissions

The Changing Climate of Climate Change

~ Marco Mensink, Energy & Environment Director, CEPI (Confederation of European Paper Industries)

After finalising the new rules of the EU Emission trading system (EU ETS) one can start to estimate the impact on the European pulp and paper industry and its competitiveness. Measures will be in place as of 2013. However, new policies will be launched in 2011, focusing on the long term reduction needs by 2050 and the subsequent 2020, 2030 and 2040 reduction targets. Mill emissions but very much also forest carbon and calculation rules for wood products will play a role. Renewable energy targets beyond 2020 foresee a fourfold increase in biomass use. In the meantime the upcoming Cancun conference is expected not to deliver much progress, the likelihood of the US adapting a climate change policy is smaller and smaller and China is mainly focusing on growth, while in the meantime developing the winning renewable technologies. This presentation will travel the world of climate change and try to give at least a hint of what papermakers can expect in the near and not so near future.

Searching for the Opportunities in the Global Graphic Paper Industry

~ Sampo Timonen, Director, European Graphic Papers, RISI

Graphic paper producers have been facing a number of challenges over the past few years, not least of all with overcapacity, profitability and the threat from e-media and new communication channels. This presentation will cover:

• Long term challenges facing the graphic paper sector
• An analysis of the megatrends impacting demand and productions costs
• An overview of long term profitability drivers
• A roundup of the opportunities and positive issues for the sector

Questions & Answers and Wrap Up