Composite Fibers Business Unit
Beyond PaperTM...is everything we do above and beyond making great paper – that makes us unique.
The Role of Filterpaper in SustainabiliteaFabrice WernerBusiness Unit Sales DirectorGlatfelter Composite Fibers Business Unit
2© 2007 Glatfelter Gernsbach GmbH & Co. KG • Composite Fibers Business Unit • P.O. Box 1155 • D-76584 Gernsbach • Germany
Composite Fibers Business Unit
Company Snapshot - 2007
• Budgeted Sales: ~$1.14 billion
• Key Offerings: Papers for tea bags, coffee filters, trade book publishing, specialized envelopes, postage stamps, overlay papers, digital imaging applications and carbonless products
• Production Capacity: ~782k short tons per annum
• Production Facilities: Seven production facilities strategically located in the U.S., Europe & Philippines
• Timberlands: ~75,000 acres (owned & managed) located in U.S.
• Employees: ~3,700 (~ 1,000 Composite Fibers)
• Founded: 1864
• Headquarters: York, Pennsylvania
• Stock Exchange: NYSE, Symbol: GLT
3© 2007 Glatfelter Gernsbach GmbH & Co. KG • Composite Fibers Business Unit • P.O. Box 1155 • D-76584 Gernsbach • Germany
Composite Fibers Business Unit
#4 – Leadership positions in 4 market segments
#3 – 3 modern facilities in Germany, France & UK with world-leading incline wire capabilities
#2 – Merger of 2 world leaders in the tea & coffee market
#1 – One Company, One Culture, One Brand (1)
Composite Fibers Overview
Composite Fibers Business Unit
4© 2007 Glatfelter Gernsbach GmbH & Co. KG • Composite Fibers Business Unit • P.O. Box 1155 • D-76584 Gernsbach • Germany
Composite Fibers Business Unit
Global Presence
Gernsbach, Germany
Customer Base
Africa
America: North
America: Central & South
Europe: UK & Ireland
Europe: South & West
Europe: North & Central
Europe: East
Middle East
Asia: Indian
Asia: Pacific
G. Europe66%
Americas14%
G. Asia20%
5© 2007 Glatfelter Gernsbach GmbH & Co. KG • Composite Fibers Business Unit • P.O. Box 1155 • D-76584 Gernsbach • Germany
Composite Fibers Business Unit
Global Leadership in Beverage Markets
• The Global leader in non-heat seal and heat seal teabag filter paper
• The European leader in metallized paper for beer label
• The Global leader in heat seal coffee filter paper
Composite Fibers Business Unit
Beyond PaperTM...is everything we do above and beyond making great paper – that makes us unique.
The Sustainability / Biodegradability Trend
7© 2007 Glatfelter Gernsbach GmbH & Co. KG • Composite Fibers Business Unit • P.O. Box 1155 • D-76584 Gernsbach • Germany
Composite Fibers Business Unit
Environmental Awareness is Increasing in the Food Sector
• Nestlé study on consumer habits in Western Europe:51% like products with additional inherent health benefits
• Low price ranks fifth in importance to consumers:preceded by taste, variety, affects on health, andbiodegradability/Environmental products
• 45% do not feel well-informed on food products and their impact on the environment
Increase in sales of organic products
beef
cerealspotatoes
fruit & vegetablespork
eggspoultrymilk
0%
10%
20%
30%
40%
50%
60%
70%
8© 2007 Glatfelter Gernsbach GmbH & Co. KG • Composite Fibers Business Unit • P.O. Box 1155 • D-76584 Gernsbach • Germany
Composite Fibers Business Unit
Reasons for Purchasing Environmentally-Friendly, Organic, and Alternative Foods
Source: ZMP Zentrale Markt- und Preisberichtsstelle (a central market and price reporting
center for farming and forestry products) Attitudes and Consumer Profiles
0% 10% 20% 30% 40% 50% 60%
Purity
Important forchildren's nutrition
Protectnature/environment
Better value
Better, natural taste
Health
9© 2007 Glatfelter Gernsbach GmbH & Co. KG • Composite Fibers Business Unit • P.O. Box 1155 • D-76584 Gernsbach • Germany
Composite Fibers Business Unit
Consumers Support 100% Biodegradable Packaging
45% 44%
9%
1% 0% 1%0%
10%
20%
30%
40%
50%
Very good 1 2 3 4 Very bad
• How do you like the idea of replacing the traditional plastic bags by 100% biodegradable packages?
• Source: IBAW – Interessengemeinschaft Biologisch Abbaubare Werkstoffe e.V.
Composite Fibers Business Unit
Beyond PaperTM...is everything we do above and beyond making great paper – that makes us unique.
Tea Filter Paper & Sustainability?
11© 2007 Glatfelter Gernsbach GmbH & Co. KG • Composite Fibers Business Unit • P.O. Box 1155 • D-76584 Gernsbach • Germany
Composite Fibers Business Unit
Question – Tea leaves & banana?
12© 2007 Glatfelter Gernsbach GmbH & Co. KG • Composite Fibers Business Unit • P.O. Box 1155 • D-76584 Gernsbach • Germany
Composite Fibers Business Unit
Answer – Abaca
Abaca is a long and natural fiber used in the manufacturing of long fiber papers used in tea bag
13© 2007 Glatfelter Gernsbach GmbH & Co. KG • Composite Fibers Business Unit • P.O. Box 1155 • D-76584 Gernsbach • Germany
Composite Fibers Business Unit
The Tea Bag Papers from anEnvironmental Perspective
Heat-sealable tea bag papers
Non-Heat sealable tea bag papers
Approx. 75% biodegradable natural fibers
Approx. 75% biodegradable natural fibers
Approx. 25% synthetic polymer
fibers
Approx. 25% synthetic polymer
fibers
100% biodegradable natural fibers
100% biodegradable natural fibers
Approx. 90% o f all raw materials used in teabag paper are biodegradable and from a sustainable source
Composite Fibers Business Unit
Beyond PaperTM...is everything we do above and beyond making great paper – that makes us unique.
GLT answers to Sustainability
15© 2007 Glatfelter Gernsbach GmbH & Co. KG • Composite Fibers Business Unit • P.O. Box 1155 • D-76584 Gernsbach • Germany
Composite Fibers Business Unit
Certification of Wood Pulp Suppliers
• Glatfelter is engaged in new initiatives to insure that in the near future all it‘s wood pulp suppliers are certified in meeting good forestry practices and sustainable forest management
16© 2007 Glatfelter Gernsbach GmbH & Co. KG • Composite Fibers Business Unit • P.O. Box 1155 • D-76584 Gernsbach • Germany
Composite Fibers Business Unit
DYNAGREEN – A solution to improve sustainability
• Conventional heat-sealable tea bag papers (polymer fibers)
• Up to 65% to 85% biodegradable• 15% to 35% polymer fibers – non-
biodegradable
• New: DYNAGREEN 100% biodegradable heat-sealable teabag paper
• 100% biodegradable polymer figers
•Conventional heat-sealable
tea filter papers
Composite Fibers Business Unit
Beyond PaperTM...is everything we do above and beyond making great paper – that makes us unique.
Conclusion
18© 2007 Glatfelter Gernsbach GmbH & Co. KG • Composite Fibers Business Unit • P.O. Box 1155 • D-76584 Gernsbach • Germany
Composite Fibers Business Unit
Conclusion
• Environmental responsibility is one of Glatfelter’s core value – Member of Paper Industry Climate Change– On-going actions to Certified Pulp
• Glatfelter currently offers nhs teabag materials that are 100% biodegradable and produced with sustainable materials (abaca, pulp,…)
• Glatfelter continues to work on hs teabag material solution that are 100% biodegradable – Dynagreen is a first response to the issue of biodegradability and sustainability for hs teabag material