1. Paper Recycling Ladislav Veres
Košice, October 18th 2012

2. Smurfit Kappa Group general information Paper Recycling –
Agenda
Smurfit Kappa Group general information
Paper Recycling –
Recovered Paper as a raw material
Global
Europe
Slovakia
Recovered Paper Quality Issues
Increased Contamination
Decreasing Fiber Quality
Closing the Loop in Paper Industry

3. 1. About Smurfit Kappa Group
Smurfit Kappa Group is a world leader in paper-based packaging with operations in Europe and Latin America.
Smurfit Kappa Group operates in 21 countries in Europe and is the European leader in containerboard, solidboard, corrugated and solidboard packaging and has a key position in several other packaging and paper market segments, including graphicboard and sack paper. Smurfit Kappa Group also has a growing base in Eastern Europe, a bag-in-box facility in Canada and operates in 9 countries in Latin America where it is the only pan regional operator.
Employees (FTE) 38,000
Presence
European countries 21
Latin American countries 9
Operating Facilities 331
including 1 BIB in Canada

4. Smurfit Kappa Group Profile
Packaging Europe
Sales Volumes (million tonnes)
Kraftliner 1.4
Recycled Containerboard 2.9
Other Paper and Board 1.1
Corrugated 4.2
Solid Board Packaging 0.3
Latin America
Sales Volumes (million tonnes)
Containerboard 0.7
Other Paper and Board 0.4
Corrugated 0.7
Full Year 2011
Net Sales (€ billion) 7.4
Containerboard (million tonnes) 5.1
Corrugated Packaging (million tonnes)
(Full Year figures)

5. European Operations Virgin Mills 5 Recycled Containerboard Mills 13
Other Recycled Paper and Board Mills 8
Corrugated 162
Cartons and Solid Board Packaging 9
Recovered Fibre 16
+ Joint-Venture depots 8
Other 47
(as at March 2012)

6. 2. Paper Recycling: Recovered Paper as a raw material
Global recovered paper consumption (2010): 222 million metric tons
Source: RISI Outlook for Global Recovered Paper Markets (2012)

7. 2. Paper Recycling: Recovered Paper as a raw material
Historic and forecasted recovered paper consumption
Source: RISI Outlook for Global Recovered Paper Markets (2012)

8. 2. Paper Recycling: Recovered Paper as a raw material
Recovered paper consumption per region
Source: RISI Outlook for Global Recovered Paper Markets (2012)

9. 2. Paper Recycling: Europe
European recovered paper utilization and collection overview:

10. 2. Paper Recycling: Europe
Germany – Recovered paper collection & utilization development
Germany
Year
RP Collection
RP Utilization
1991
7.499
6.420
1992
7.915
6.742
1993
8.564
6.995
1994
9.689
8.160
1995
10.670
8.599
1996
10.912
8.888
1997
11.493
9.457
1998
12.164
9.917
1999
12.825
10.228
2000
13.573
10.992
2001
13.826
11.526
2002
13.696
12.038
2003
13.570
12.449
2004
14.312
13.219
2005
15.077
14.413
2006
15.479
15.254
2007
15.737
15.822
2008
15.600
15.493
2009
15.425
14.795
2010
15.388
16.273
2011
15.262
16.074
Sources: CEPI Annual Statistics 2011
CEPI Historic Statistics

11. 2. Paper Recycling: Europe
UK – Recovered paper collection & utilization development UK
Year
RP Collection
RP Utilization
1991
3.088
2.954
1992
3.214
3.055
1993
3.406
3.294
1994
3.921
3.677
1995
4.023
3.997
1996
4.539
4.323
1997
5.005
4.618
1998
5.030
4.654
1999
5.135
4.753
2000
5.280
4.882
2001
5.552
4.612
2002
5.999
4.610
2003
6.386
4.542
2004
7.204
4.625
2005
7.754
4.543
2006
8.016
4.172
2007
8.616
4.047
2008
8.768
3.993
2009
8.158
3.820
2010
8.005
3.763
2011
8.036
3.758
Sources: CEPI Annual Statistics 2011
CEPI Historic Statistics

12. 2. Paper Recycling: Europe
European recovered paper utilization and collection development:
Sources: CEPI Annual Statistics 2011
CEPI Historic Statistics

13. 2. Paper Recycling: Slovakia
Slovakian recovered paper utilization and collection development:
Sources: CEPI Annual Statistics 2011
CEPI Historic Statistics

14. 2. Paper Recycling: Slovakia
Slovakian recovered paper utilization and collection development:
Source: ZCPP statistics 2011

15. 2. Paper Recycling: Slovakia

16. 3. Recovered Paper Quality Issues: Increased Contamination
Recovery rates in Europe and North America are already very high and are close to their economic limit:
Source: McKinsey

17. 3. Recovered Paper Quality Issues: Increased Contamination
The first volumes to be collected are those who are easy to access, cheap and clean
Sourcing additional volumes in regions with high recovery rates leads to inferior recovered paper
Source: McKinsey

18. 3. Recovered Paper Quality Issues: Increased Contamination
Also of importance is how volumes are collected
Co-mingled / single-stream collection is a reason for concern
Via the waste frame directive Europe politically is against this type of collection
Co-mingled collection is still used in several countries
Also, there is a risk of increased use of co-mingled collection

19. 3. Recovered Paper Quality Issues: Decreasing Fiber Quality
Over the past two decades recovered fiber has replaced wood pulp as the dominant ingredient in paper and board production
Source: RISI Outlook for Global Recovered Paper Markets (2012)

20. 4. Smurfit Kappa Recycling: Closing The Loop
Closing the loop in Smurfit Kappa Group

21. 4. Smurfit Kappa Recycling: Closing The Loop

22. Thank you for your attention !