PPA’S Sustainability Summit 25 th November 2014

Palm Paper Site February 2009August 2014

King’s Lynn PM7 Project Justification to invest £400 million UK newsprint consumption consistently > 2million m/t per annum UK newsprint production approximately 1.2 million per annum UK publisher support Availability of Recycled Fibre Total collected 8.5 million m/t – of which 4 million m/t plus exported Palm requirement 0.5 million m/t

King’s Lynn PM7 Project Determining factors for choosing King’s Lynn Local authority support Proximity to available sources of RCF Proximity to major UK pressrooms Affordable land Availability of fresh water Proximity to Power Station

King’s Lynn PM7 Project – 2007 Key Dates purchase land submitting application PM 7 order appli- cation approval begin constuction work begin personnel hiring process machine installation testing production begin

King’s Lynn PM7 Project Most modern newsprint machine 100 % recycled fibres Machine width meters Design speed 2,000 m/min Capacity 400,000 tons p.a Total investment 400 mio ₤

Environmental Impacts Lower level of the mill reduced, visual impact Noise – paper machine / traffic Transport – o Palm account for 1% increase in traffic movements (offset by closure of other businesses in King’s Lynn o Closed loop deliveries Ecology Nature Conservation King’s Lynn PM7 Project

Environmental Impacts Water resources – Palm only takes 4% of overall requirement each day Increased paper recycling in the UK – reduces UK carbon emissions Air Quality – o Odour – treatment plant ensures no odours released o Facility Emissions – natural gas (steam) – low emissions King’s Lynn PM7 Project

Certifications Quality Management ISO 9001:2008Environmental Management ISO 14001:2004Occupational Health & Safety management OHSAS Energy Management ISO 50001:2011 The Blue Angel Eco Label - A Sign of Special Environmental Friendliness. Awarded to Palm News, Palm Top & Palm Print FSC ® Certification no. SCS-COC

King’s Lynn PM7 Project Recovered paper for newsprint production ONP EN & 1.06 N&P EN : Availability – declining Quality - deteriorating

Recycling Paper at PM7 Process Overview 1 RECEPTION AND STORAGE – for 8,000 m/t 2 RECYCLED FIBRE PROCESSING 3 PAPER PRODUCTION

Recycling Paper at PM7 Process Overview 4 FINISHING 5 ONGOING PROCESSES

Challenges faced in recovered paper 2007 to 2014

Volumes of Recovered papers (Graphic Paper)

The UK change in quality 2007 to % out-throws

2014 – 7 years on 2007 – 2 million m/t consumption UK newsprint consumption reduced to million m/t per annum UK newsprint consumption set to decline further

2014 PM7 has produced nearly 2 million metric tonnes since August 2009 start up Running at >1,900 m per minute Producing standard newsprint and Improved Newsprint; Palm Print and Palm Top

Palm Improved Grades Palm Top 68 ISO Heatset Palm Top 68 ISO Gravure Palm Print 68 ISO Heatset Palm Print 68 ISO Coldset

Advantages of Palm Improved Grades UK based mill – flexible, up page at short notice 100% recycled products – FSC Certified Automated warehouse – minimal roll handling RCF based – more metres per roll In pressroom – less splices Overall – Cost effective option for publishers and printers looking to downgrade from SC/LWC paper grades