1. June 3, 2015PrintCity- 1 - Moscow 2006 Value Added Printing of Newspapers Josef Aumiller Vice President PrintCity Product Marketing Manager Webfed Presses, MAN Roland

2. June 3, 2015PrintCity- 2 - Presentation of VAPoN study 1.Introduction & Innovative newspapers 2.Paper - Ink - Drying Systems 3.Radiation Curing 4.Heatset Drying 5.Comparative Economics 6.Newspaper Trends 7.Some Conclusions

3. June 3, 2015PrintCity- 3 - Project sponsors Adphos-Eltosch — UV curing MEGTEC — Heatset drying MAN Roland — Presses Sun Chemical — Inks UPM — Papers Other contributors Boettcher — Rollers ESI — Electron Beam curing Eurografica — Economics MacDermid & Reeves — Blankets In association with Ifra Cross-industry project

4. June 3, 2015PrintCity- 4 - Unique cross-industry research 1.Analysis of technical – economic factors 2.Assist informed investment planning 3.Revenue & differentiation opportunities VAPoN project goals Which direction?

5. June 3, 2015PrintCity- 5 - VAPoN™ definition Newspaper products with a clearly visible difference to standard coldest Recognised by readers & advertisers Help attract higher revenues & differentiation Value Added Printing of Newspapers™

6. June 3, 2015PrintCity- 6 - VAPoN’s inter-related drivers 1. Media & revenue competition Responses to post-Internet media landscape Media convergence 2. Change in newspaper industry structure Production as profit centres or commercial entities Structural convergence 3. Technology evolution What can be done now, or in the future? Technology convergence

7. June 3, 2015PrintCity- 7 - VAPoN Media & revenue competition Importance of innovative newspapers products

8. June 3, 2015PrintCity- 8 - Media & revenue competition Innovative & Differentiated newspaper products* High impact cover pagess without marking Special Interest Editorial Supplements High impact ROP advertising pages Preprinted Advertising Inserts Magazines & Guides More & better colour Upgraded paper Multiple versions of same newspaper Reader-market profile drives format, binding, paper & process *Products identified in numerous industry post-Internet market research projects

9. June 3, 2015PrintCity- 9 - Some VAPoN product examples “ÖSTERREICH” – New Austrian daily newspaper Tabloid format 340 x 251mm Magazine-style design “4 newspapers in 1” National & Regional news Daily Heatset Lifestyle & TV magazines Major target group 22-49 years old 55 000 subscriptions sold before launch date

10. June 3, 2015PrintCity- 10 - "ÖSTERREICH" – Technology solution GEOMAN Tulln Starting date: Sept. 1, 2006 250 000 copies weekdays / 600 000 on Sunday First edition: 220 pages Double-width presses — 1 heatset web on both GEOMAN, Tulln COLORMAN, Passau

11. June 3, 2015PrintCity- 11 - Some VAPoN product examples Gulf News Daily newspaper with ROP heatset & coldset sections Wentworth Courier, Melbourne Free weekly newspaper 360 pp all heatset on LWC paper, stitched & trimmed

12. June 3, 2015PrintCity- 12 - Gulf News – Technology solution CROMOMAN with 3 heatset dryers at GPPC

13. June 3, 2015PrintCity- 13 - Semi commercial & publishing Roularta, Belgium Targets: Improved quality for existing products Weeklies Magazines New publishing products 4:2 COLORMAN 4 x 4-high towers 100% heatset

14. June 3, 2015PrintCity- 14 - Combination double + single-width press Unique products & flexibility Innovative VAPoN configurations MAN Roland REGIOMAN Coldset 4-1 + UNISET Heatset 2-2 APN Newspapers, Maroochydore, Australia _ 2006

15. June 3, 2015PrintCity- 15 - More VAPoN product examples Axel Springer, Germany Heatset cover Coldset text Bring back classified ads from Internet to Print Helsingin Sanomat, Helsinki Insert with housing adverts adapted to Internet style Printed heatset on COLORMAN

16. June 3, 2015PrintCity- 16 - VAPoN Changes to industry structure Increasing convergence

17. June 3, 2015PrintCity- 17 - Newspaper production structure has evolved into: 1: Vertically integrated production profit centres 2: Alliances with other publishers for joint production facilities 3: Outsourced production to commercial contract printers Increasing convergence to commercial print for: Operational efficiency Cost efficiency & ROI (Return on Investment) Markets, products & technology with “semi commercial” presses & postpress Structural changes

18. June 3, 2015PrintCity- 18 - VAPoN & Semi commercial? Semi commercial — Ifra definition “A newspaper press equipped with a dryer printing low to mid quality commercial work, magazines, directories & some newspaper products” VAPoN uses Semi commercial (& other techniques) but focuses on their application to newspaper products and business opportunities from both ROP (Run of Paper) as well as inserts Ifra is using data from VAPoN test printing to develop specific standards for Semi commercial printing

19. June 3, 2015PrintCity- 19 - VAPoN’s 4 dimensions At this stage, VAPoN focuses on Paper & Print-Ink-Drying Paper Postpress FormatsPrint-Ink-Drying