1. papiNet Overview For Solution Providers

2. Contents Introduction Goals Marketsize What is papiNet? Opportunities for Solution Providers How to Become a Solution Provider Next Steps

3. Goals Create awareness and interest in the papiNet standard Provide information on current status and future plans Offer suppliers and customers suitable tools and processes to adopt the standard Share opinions and expectations Define next steps Accelerating papiNet implementation within the industry

4. Paper Demand Worldwide WFU WFC Newsprint Magazine Papers Total demand in North America 41.2 mio. tons Total demand in Western Europe 36.5 mio. tons Total demand in Asia-Pacific 40.2 mio. tons 25 29 10 Source: Jaakko Pöyry Consulting

5. Market Size Source: PPI Annual Review 2002 Western Europe China Other Asian countries Japan Latin America Africa Oceania Whole world North America Paper consumption, kg per capita: 52 Population, millions: 6,090 Other Europe 303 527 316 340 31 392 201 15 2456 127 242 148 30 35 1285 807 29 6

6. World demand trends of graphic papers 1983-2005 '000 tons Growth rate 2000-05 Source: own research

7. papiNet’s Goal is … Improve the efficiency of the paper supply chain and remove cost by: Enabling collaboration Documenting standard business processes Improving communications Reducing the cost of electronic communications

8. Standards enable collaboration Why Standards? Standards are fundamental to an efficient supply chain: Enable timely, efficient and effective communications Avoid costly/non-value added translation activities Enable fast and widespread connectivity Avoid “one-off”custom connections

9. The Need for Collaboration "90% of enterprises that fail to provide visibility and supply chain automation by 2004 will lose their status as preferred suppliers." Karen Peterson Director, Gartner Inc. August 2002

10. Standard or “one-off” custom interfaces? Publishers/ Catalogers Paper Companies Printers/ Converters Agents Brokers Merchants dot coms Which is better for our supply chain? Our Choice

11. A more efficient supply chain keeps print viable! Benefits for Our Supply Chain Improved Customer Satisfaction Reduced I.T. infrastructure investment Reduced administrative costs Faster communications Better information for decision making

12. papiNet Is… An international paper and forest products industry e-business initiative. A set of standard electronic documents that facilitates the flow of information among parties engaged in the buying, selling, and distribution of paper and forest products. An enabler for collaborative electronic business using the internet.

13. papiNet Executive Committee papiNet NA Membership Board papiNet Euro Membership Board Central Work Group Standards Maintenance Convergence and Partnering Transport Implementation Focus Marketing Team Book Fine Paper Label Stock Packaging/Containerboard Publication Papers Pulp Recovered Paper Timber/Lumber Segment Implementation Groups papiNet Organization

14. papiNet Europe Membership Ahlström AssiDomän Burgo ENCE Expresso Fedrigoni Holmen Paper International Paper Kappa Korsnäs Lecta Mayr-Melnhof M-real Mondi Myllykoski Norske Skog Portucel/Soporcel Sappi SCA Smurfit Södra Stora Enso UPM-Kymmene

15. papiNet NA Membership Abitibi-Consolidated Advance Magazine Publishers Bowater America Brown Printing Dupont ForestExpress G+J USA Publishing International Paper Lands’ End Madison Paper Industries MeadWestvaco Perry Judd’s Quad Graphics Inc. Quebecor World R.R. Donnelley Sappi Fine Paper, NA Seeburger SP Newsprint Stora Enso NA Tembec Tietoenator Majiq Time Inc UPM-Kymmene Weyerhaeuser Company

16. papiNet Standard Set of common electronic formats and terminology for the paper and forest products industry Designed to facilitate system-to-system real time exchange of information between buyers and sellers Categories: –Basic Order Fulfillment –Supply Chain Management –Product Quality Standard includes the XML Schema and Stylesheets to render the messages as business forms

17. papiNet messages can be categorized according to the Supply-Chain Council’s, Supply-Chain Operations Reference (SCOR) model Product Attributes Planning Request For Quotation Availability Purchase Order Order Confirmation Call-Off Order Status Inventory Status Product Quality Usage Inventory Change Product Performance Delivery Message Goods Receipt Invoice Credit/Debit Note Business Ack Information Request Complaint Complaint Response Supply Models

18. Segment Implementation Groups (SIGs) Groups Already Formed: XBITS (NA Book Manufacturers) Publication Papers (Europe) Fine Papers (Europe) Packaging (Europe) Publication Papers (NA) Label Stock (Global) Wood (Europe) Groups Yet To Be Formed in 2003: Fine Papers (NA) Packaging - Containerboard and Paperboard (NA) Recovered Paper (Global)

19. SIG Activities Enhancements to the papiNet Standard Understand benefits of integration and use of the standard Develop ROI information Develop typical business cases Document best practices for use of the standard in this channel Network and share implementation information Collaborative web site

20. V2.0 August 2002 Release Usage Order Status Inventory Status Inventory Change Information Request Product Attributes June 2001 Release Purchase Order Order Confirmation Call Off Delivery Message Invoice V1.0 Feb 2002 Release RFQ RFQ Response Goods Receipt Credit Debit Note Business Ack V1.1 Schema V2.1 April 2003 Release Availability Planning Product Performance Product Quality Complaint Complaint Response papiNet automates the complete supply chain

21. www.papiNet.org

22. Getting a Project Started Use E-Business as an opportunity to review your entire supply chain Recognize that papiNet is an industry-wide opportunity to lower costs Position papiNet as a partnership with key trading partners to improve the supply chain Include suppliers, publishers, merchants, printers, component vendors Develop a vision of a papiNet-enhanced future business model that includes your trading partners Sell the project as essential to this future model of doing business Partner with Solution Providers

23. SellerBuyer PresentationManual Entry The Net Firewall papiNet Message Firewall Message Service Middleware Message Service Middleware Business Software Auto Entry Auto Population EAI Enterprise Focus Small Medium Large Enterprise Focus Small Medium Large Solution Type Software Product Business Service Development Service Solution Type Software Product Business Service Development Service Industry Exchange The Solutions Horizon

24. Solution Types Software Product Business Software –Enterprise Resource Planning (ERP) –Customer Relationship Management –Supply Chain Management –Warehouse Management Message Management –Manual Population –Automatic Population –XML Presentation –XML Translation Middleware –Message Service Development Environments –XML –Programming Business Service Industry Exchange Logistics Message Translation ERP connectors Development Service Enterprise Application Integration XML Services Infrastructure Services

25. Example: Simple Ordering Tool A simple ordering tool is needed: web form, spreadsheet or WP doc Send the Purchase Order to a supplier via a Message Service Integrate Order Status checking viewable by a papiNet standard stylesheet Supplier confirms delivery via a Delivery Message The Delivery could be accompanied by an automated Invoice viewable via a papiNet stylesheet Additional transaction capabilities including Request For Quotation, Usage, Inventory Status and others could be added to the tool Accounting processes could be automated within the tool

26. Become a Solution Provider Why join papiNet TODAY? Accelerate Implementation papiNet is THE STANDARD Connecting to other Standards and Advancements in Printing and Publishing: –Job Definition Format (CIP4) instructions for prepress, press, and postpress –SPACE/XML (IDEAlliance) electronic insertion of advertising InsideTrack – for a New Market AND papiNet provides the Forum through the Solution Providers Council

27. Be a Part of the papiNet Community 50+ Companies Engaged in papiNet for Over 2 Years 90+ Companies Implementing 1,800 Users Representing 300+ Companies Accessing www.papinet.orgwww.papinet.org Expansion of the penetration is targeted by producers and printers

28. Access to Services and Programs Market & Promote Your Products Online promotion through website profile and e-newsletter Forums to Exhibit, Speak & Network – IDEAlliance XML Europe (May, 2003) and USA (December, 2003) Cooperative programs to develop and distribution White Papers – Seeburger & Stora Enso Implementation Case Study Implementation Groups Vertical Market Focus Change Process – Inside Track for Early Updates & Information

29. Next Steps 1.Join as a Solution Provider 2.Develop a profile of your offerings 3.Provide us with a website link 4.Give us information for a newsletter 5.We will share target list of companies: –Current papiNet users –Future papiNet users –Contact list