is writing the future In 3 dimensions

arjowIggIns graphIc

2 0 1 1 S U S T A I N A B L E D E V E L O P M E N T R E P O R T

contentsProfile 03Message from the chief Executive 04

Employee relations 07Working in complete safety 08Promoting talent 10Supporting our partners 11

Environmental responsibility 13Climate Savers: a new agreement with nature 14The Arjowiggins Graphic product range 16Arjowiggins Graphic is certified! 18

Social and economic commitment 21Being a responsible industry 22 Innovating to support business 24

Sustainable development management chart 26

R A P P O R T D é V E L O P P E M E N T D U R A B L E 2 0 1 1

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carte d’identité

ProfileWorld leader in the manufacture of technical and creative papers, Arjowiggins is a wholly owned subsidiary of Sequana, a company listed on the Euronext Paris

exchange, and is established in Europe, North America, Latin America and Asia.

is writing the futurein 3 dimensionsarjowIggIns graphIc

1,631employees

6production sites, including 4 in France and 2 in Denmark

1R&D centre

581 million euros of turnoverin 2011 (including activity in medical/hospital sector)

Arjowiggins Graphic is the Arjowiggins

division specialised in coated and

uncoated recycled paper. Providing

its customers a range of innovative and environmentally friendly paper offering unrivalled quality and performance.Manufactured mainly with recycled

fibres, the Arjowiggins Graphic range

of papers is suitable for all graphic applications thanks to its advanced technical properties offer ing

whiteness and print quality, and has

become the benchmark for players in

the publishing and printing industry.

Other papers produced are suited

to a wide range of uses, including

labelling, textile transfer, and the

manufacture of scratch, playing or

smart cards.

Choosing the path of environmental responsibility is a global commitment for Arjowiggins Graphic, both from an environmental and socio-economic perspective. The prism of

environmental responsibility guides

the company’s development by

leading it to adopt environmentally

friendly manufacturing processes,

which support other companies in

their responsible practices and train

its teams and partners.

Arjowiggins Graphic not only recycles paper, it also contributes to the development of a cleaner industry that creates jobs.

R A P P O R T D é V E L O P P E M E N T D U R A B L E 2 0 1 1

As paradoxical as it may seem, the further we move into the 21st century and the digital era, the greater the role played by paper. The universal vehicle of communication paper is an object of great simplicity while increasingly becoming the fruit of significant technological innovations.At Arjowiggins Graphic we are fully aware of what paper represents, how our customers use it and what they expect, both in terms of quality and environmental responsibility. The future of paper, a renewable material is decidedly sustainable.

Being able to actively participate in the development of its sector and

the deep transformation of the entire manufacturing chain is a wonderful opportunity for any manufacturer. The paper manufacturing chain begins in FSC® certified forests and can end after several rounds of repeated recycling. Meanwhile, there is forest management, the work conducted by the partnership forged with both our customers and theirs, the collection of waste paper and deinking, etc. At each of these stages, our considerations are environmentally responsible. For both mankind and the planet, we think a global vision is the answer to a market facing economic difficulties (or outright crisis), and the way to restore positive momentum and build a sustainable future.

The 3 avenues of our responsibility and commitment can be considered separately, but they are cohesive and perfectly interactive.

Our employee relations policy is above all a people commitment based on sharing our five core values: respect, innovation, results-based performance, responsibility, and safety. All these values give meaning to our actions. In the area of employee relations, safety is certainly one of the most important issues to be managed internally.

Being a responsible player requires a respectable and strict human resources policy, and this also applies to our exchanges with our partners.

Our economic and social commitment is perhaps the most visible part of the iceberg. As a manufacturer, we are obliged to deliver results. We are of the opinion that the company’s development depends on the innovation and consistency of our global policy. This is why our R&D units develop strategic and technological partnerships with leaders in the printing machine market in order to provide new papers and new deinking techniques. By giving meaning to our environmental, qualitative and innovative approach, we will be able to anticipate the market. This is what makes Arjowiggins Graphic a flexible company in relation to a market burdened with economic constraints and in the process of transformation due to technological developments.

Message fromthe chief Executive

Agnès RogerChief Executive of Arjowiggins Graphic

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Message fromthe chief Executive

Our environmental responsibility is incorporated into our actions: Arjowiggins Graphic makes paper, but only in keeping with our environmentally responsible guidelines. This concern lies at the heart of our approach. In our research, in the products we develop and offer, in our commitment towards our suppliers, partners and customers, at each level of the chain, we act with virtue. In order to make our approach a sustainable and measurable reality, we worked with WWF International and joined the Climate Savers programme. Arjowiggins Graphic is proud to be part of this programme and recognises the major challenge it represents. Reducing our CO2 emissions by 10% per tonne of paper produced between 2007 and 2014 it is a strong commitment, but it seemed vital that we should follow a transparent and effective approach. The approval of our approach and methodology by WWF International sets Arjowiggins Graphic apart. We would like to be a pioneer in our actions, but also in our analysis and approval methods. This commitment for transparency is intended for our partners, we want to be in tune with the development of the manufacturing industry and remain a reliable player as market leader in recycled graphic papers.

Arjowiggins Graphic has already reduced its CO2 emissions by 27% between 2004 and 2010. We are now one of the best performing environmentally friendly company’s but, although the task is increasingly hard to accomplish, we still have a lot of work to do. We are increasing development and ready to take on new challenges to provide our customers with products that are more and more environmental ly fr iendly, energy efficient, less dependent on natural resources and maintain our high quality recycled papers. Arjowiggins Graphic teams are focused on achieving this and we count on our partners/customers, both current and future, to follow us on this path together; the path of sustainable responsibility!

Agnès RogerChief Executive of Arjowiggins Graphic

42 %OF THE TURNOVER

GENERATED BY

ARJOWIGGINS GRAPHIC

COMES FROM

RECYCLED RANGES

(excluding activity in medical/

hospital sector)

Texte

WORK STOPPAGE

- 68 % is the reduction in the number of accidents with work stoppage between 2007 and 2011

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" Valuing and encouraging the growth of each person individually is the only way to move the company forward"François Manteau, Director of human resources.

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Employee relations

For us, maintaining good employee relations is not just policy: it’s

a great responsibility, with special attention made to safety and

training. As well as a responsibility towards our chosen partners

such as companies for employees with special needs, which we

support and assist with their training of employees. Our social

commitment goes beyond our offices.

CERTIFICATION

OHSAS 18001 Certification (Occupational health and safety) in all the group’s plants.

A marked improvement in results Each plant has its own action plans depending on its specific characteristics. Divided into two categories (technical and behavioural), they were able to reduce the number of accidents resulting in work stoppage to 20 in 2011 compared to 33 in 2010. The programme launched in 2008 to improve the safety of paper machines is a lengthy task and Jean-Christophe Mailhan remains cautious: "It is often difficult to focus on a potential risk when there are no unfortunate events to serve as a warning. We are aware of this paradox. We discuss all incidents that occur and continue to monitor systems to reduce the number of accidents even further, requiring a high level of involvement from operators in order to implement specific and necessary procedures. This behavioural dimension is at

the heart of the increased safety approach. Developing the concept of mutual vigilance, analysing risks, anticipating them, etc. This task, in collaboration with the CHSCT (health, safety and working conditions committees), enabled the implementation of effective monitoring tools at middle-management level. The annual training day involving all employees is also a way to exchange and share good practices,” explains Jean-Christophe Mailhan, Director of the Bessé-sur- Braye plant.

These positive results are the product of each and every person’s hard work but Jean-Christophe Mailhan remains watchful. We communicate incidents to maintain our attention and reduce still the number of accidents.

Concrete actions to... ...Raise awareness"Safety Day" is an annual awareness-raising event during which each employee is informed of safety performances and contributes to the programme. This day is also an opportunity to discuss safety rules, to work on rules that help limit the occurrence of accidents or incidents, and to identify and better understand the challenges and risks of each sector.

The paper industry has many risks for employees

who manage or maintain production processes.

Safety is more than a commitment for Arjowiggins

Graphic, since it is one of the company’s values.

We are fortunate that our work over the last few

years has resulted in very few accidents. However

the safety risks remain significant and vigilance is

still of the utmost importance.

working in a safe environment

0

30

20

10

70

60

50

40

2007 2008 2009 2010 2011

Significant drop in the number of accidents with work stoppage since 2007

...ImproveA formal structure for reporting incidents and anomalies is followed weekly by Management, via the Safety Manager of each site and a specific steering committee. This organisation enables a better understanding of the different situations experienced on a daily basis and helps ensure the effective implementation of corrective actions.

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" Securing installations, stepping up prevention and improving workstation ergonomics are a range of topics forming part of the same strategy: working towardswell-being at the workplace "

Jean-Christophe Mailhan, Bessé-sur-Braye plant Director

Reels stock - Le Bourray mill

Distribution of employees across 6 Arjowiggins Graphic

manufacturing sites by the end of 2011

Bessé-sur-Braye: 577 people Château-

Thierry (Greenfield): 78 people

Maglemoelle(Dalum):

41 people

Wizernes:328 people

Le Bourray: 268 people

Odense (Dalum) :

240 people

99 employees

work in the Administrative, Financial and Sales

Departments

In 2011, all plants received OHSAS 18001 certification, which is a globally recognised standard for the management of occupational health and safety

9

In 2011, the company decided to draw

up a comprehensive map of internal

skills in order to better appreciate and

establish a platform for development.

"We never lose sight of our

responsibility towards our employees.

Thus, our social policy is applied

to establish agreements with social

partners on all issues. Furthermore,

we are aware of the importance of

recognising and developing the skills

of each employee. From this mammoth

task emerged a middle-management

training programme in order to

better involve this management in

the company’s various projects.

These training sessions concern

the analysis of financial results,

project management, labour law

and relations with social partners.

The objective is to be able to rely on

this group to provide several action

and optimisation plans,” specifies

François Manteau

Arjowiggins Graphic places skills and expertise

at the core of its strategy. The training policy

encourages the growth of each employee and

meets the company’s strategy for continuous

innovation.

promoting talent

The purchase of waste paper

represents nearly 350,000 tonnes

in volume per year for Arjowiggins

Graphic. In order to develop the

collection and sorting of waste

paper, which finish still too often in

household waste, the company calls

on small local companies, spread

across the French territory, which

have the benefit of being ESATs

(centres providing assistance through

employment). "These partnerships

are very important to us; in addition

to working together to prevent these

papers from being disposed of in

household waste, which is costly

for the community, we support

these companies providing them

with sorting bins and training them.

There is a very strong social and

human dimension that is important

to us", explains Emmanuel Toussaint

d’Auvergne, Director of waste paper

sales at the Greenfield plant. In order

to take the approach even further

the company helps these small

companies or organisations to join

forces to meet significant demands.

The CYCLETHIQUE network covers

75% of the French territory.

Arjowiggins Graphic then purchases

t h e w a s t e p a p e r f r o m t h e s e

compan ies , t he reby ensu r ing

it is recycled in a French plant. In

addition to the final recycling

certification, Arjowiggins guarantees

confidentiality.

Lastly, the presence of these

companies in France guarantees

a short production chain, which is

beneficial from an environmental and

social point of view.

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supporting our partners

Skills development is a value that Arjowiggins

Graphic shares externally. The group has established

partnerships with companies for employees with

special needs and companies suited to collecting

and sorting waste paper.

“The collection of waste paper was supposed to be a

marginal activity for our association. With the training

provided by Arjowiggins Graphic, their efforts made

in the commercial stage and the tools with which

they provided us, we were able to invest in equipment.

We now employ a dozen workers with disabilities and,

within 3 years, went from 90 tonnes of waste paper

collected per year to a target of 600 tonnes this year.

It’s a friendly and productive partnership.”

Luc Hahl,Director of the Bellevue Esat in Chierry

ESAT of Bellevue in Chierry city

RAW MATERIALS

100% of the virgin pulp used comes from sustainably managed forests.

67% of the virgin fibres are FSC®-certified (compared to 60% in 2010).

Recycled fibres represent 52% of the division’s requirements.

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”Being an environmentally responsible paper industry is a global commitment towards our partners, employees, customers and suppliers”Gilles Lhermitte, Arjowiggins Graphic Sustainable Development Manager.

Environmental responsibility

As a paper manufacturer, the planet is one of our main concerns;

the forests provides our raw material, in addition to water, air,

energy, and more. We have a global responsibility and our

approach is part of a virtuous circle. By joining the WWF-

International Climate Savers programme we undertake to

continuously step up our efforts to reduce our environmental

impact.

COMPANY

42 % of the turnover is generated by recycled ranges.

Launch of the innovative Cocoon Jet paper: 100% recycled high-performance paper for high-speed printing on colour inkjet presses.

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Monetary targetsThe environmental approach is truly at the heart of the positioning and strategy of Arjowiggins Graphic. Developing high-quality recycled papers is one of the aspects of this approach. A reduced energy footprint is another. It was important to choose the best partner to give credibility to the objectives set, the means of achieving them and above all the results obtained. WWF International and its Climate Savers programme guarantees that our ambition and method are taken seriously.Between now and 2014, Arjowiggins Graphic has committed to reduce its overall emissions by 23% and its CO2 emissions by 10% for each tonne of paper produced (year of reference = 2007).

In all areas"Sustainable development is a truly holistic approach. Our environmental commitment is applied to all company levels and in different areas. In order to improve safety and reduce operator risks, we must act as a responsible player. Our actions aim to implement a management system in our production units that would meet the expectations of all stakeholders to the same degree in terms of health, safety, the environment and quality,” remarks Gilles Lhermitte, Sustainable Development Manager.Considerable work has been done over several years in terms of resources with a growing share of FSC® certified fibres and the development of our range of recycled paper. The reduction of energy consumption and improvement of energy efficiency are at the heart of the commitment to reduce Arjowiggins Graphic’s carbon footprint.

All-round involvementIn order that the approach is truly global and effective, the involvement of all teams were important to Arjowiggins Graphic. A steering committee was established in order to coordinate all the actions towards reducing the ecological footprint. It is comprised of one representative for each plant and "energy" experts from the Research and Development division. In particular, it aims to identify the most relevant performance indicators in addition to listing and promoting the various projects.

Arjowiggins Graphic has been a partner of WWF

France since 2009. This strategic partnership

means the company is committed to an ambitious

strategy to reduce its global environmental

footprint. Thus, Arjowiggins Graphic joined the

WWF International Climate Savers programme

in 2011, and is currently the only French paper

company to have joined this programme

The Climate Savers network, comprises of international companies such as Coca-Cola, Volvo, Sony, Nike and mobil ises i ts members to reduce their CO2 emissions and thus play a leading role in the f ight against cl imate change.

Climate Savers: a new contractwith nature

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" To draw up a carbon footprint assessment,

it’s good. To be ambitious and transparent on

the reserved scope of evaluation, the fixed

objectives and the implemented actions,

it is better "

Aurélie PontalWWF Partnership Manager

Arjowiggins Graphic’s role within the Climate Savers programmeQuestions put to Aurélie Pontal

WWF is the first international non-governmental organisation for environmental conservation and which considers collaboration with companies as vital to reducing our environmental impact. Water and the climate are two of the major issues addressed by our actions: paper manufacturing is a priority sector for us. As part of our actions, the Climate Savers programme is a unique and limited programme to mobilise leading multinational companies in their strategy to fight climate change. The programme is very ambitious and we only accept companies that could really undertake to reduce their impact in a way that would meet the climate challenge at hand* while being economically viable.

Why should a company join the Climate Savers programme?

Many companies have conducted or are conducting a carbon footprint audit and make public commitments. However, without visibility on how and why the targets are set these commitments suffer from a lack of understanding and credibility. The Climate Savers programme is a tripartite programme comprised of the committed company, the consultant conducting the carbon audit and WWF, which confirms the ambition of the global approach. This framework adds value to the efforts made by companies in terms of reducing greenhouse gas emissions and lets member companies become leading and recognised players in issues related to the climate and energy. Over a three-year period, the partnership defines the priority actions and supports the company in following through on them.

How did Arjowiggins Graphic make its case?

First of all, Arjowiggins Graphic has been a partner of WWF France since 2009. However, what makes the difference is certainly the company’s global commitment. There are three key points that caught the attention of WWF. The first concerns the continuous investment and commitment in favour of the environment, despite the economic crisis that has dealt a severe blow to the paper industry. Arjowiggins Graphic seeks long-term benefits and really incorporated ecological concerns into its development strategy. The second factor of differentiation is their analysis of the life cycle of all products. Lastly, the third argument concerns innovation. Arjowiggins Graphic endeavours to use new, cleaner products, in addition to conceiving of a more local and economical paper production chain, etc. Their areas of innovation are at once technological, ecological and economical.

What are the priority work areas for Arjowiggins Graphic?

There are three: the recycled paper range, biomass and innovation. They represent three priority work areas for the company, in which respect new efforts will be made. For WWF, it is very advantageous to work with and support a player that uses biomass consistently and sustainably. Our partnership is innovative and ambitious, in addition to being flexible and credible.

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430

450

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0,45

Water emissionsSuspended matter (kg per tonne sold)

Carbon footprintScope 1 and 2 of the GHG Protocol – CO2 Emission (kg per tonne sold)

Type of fibres used by Arjowiggins Graphic

2004

2004 2005 2006 2007 2008 2009 2010 2011

2005 2006 2007 2008 2009 2010 2011

0%

20%

40%

60%

80%

100%

2007

Non-certified

2008 2009 2010 2011

Controlled origin

Recycled

FSC

The arjowiggins graphic range

A range of papers including recycled in white or natural,environmentally friendly, perfect for Report andAccounts, CSR and environmental reports, directmarketing materials, greeting cards, invitations, menus, etc

CommuniCation imprimée, publiCité

Papers: Cocoon, Cyclus, MS Green, Eural, MCS, Idéal,RePrint DeLuxe FSC® Certified

CommuniCation paperS

A range of papers including recycled in white ornatural white, suitable for publishing such as art books,catalogues, brochures, luxury magazines, other typesof publications.

Papers: Cocoon, Cyclus, MS Green, Eural, MCS, Idéal,RePrint DeLuxe FSC® Certified

publiSHinG

100% recycled papers, in white or natural white, suitablefor letterheads, office papers and for the production ofenvelopes.

Papers: Cocoon Office and Envelope, Cyclus Office and Envelope, Eural Office and Envelope.

Corporate CommuniCation

Tissue is mainly used for tableware, printing andhygiene and has unique characteristics. The Kaleïdorange specifically meets the needs of our customersin term of fashion and trends. Every year, new shadesenrich the truly extensive range of over 200 differentcolours.

Papers: Tissue paper for printing, Speciality Tissue paper

tiSSue paper

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The arjowiggins graphic range

The Arjowiggins Graphic product range comprises of nearly 20 brands and 70 different products intended for use in graphic arts, publishing, print communication and Office. Including the products intended for labelling, textile transfers, playing cards and cellulose wadding for tableware and hygiene products). All these papers have a reduced environmental impact, in particular the Eural, Cyclus and the Cocoon ranges.

One-side-coated papers with high quality finishes, radiantwhite and with perfect runnability, Maine 1 Face productsare the ideal range for rigid and soft packaging andlabelling. Available in recycled and with FSC® certification.

Papers: Maine 1 Face, Maine 1 Face Green.

labelS anD paCKaGinG

Extensive range of papers (fireproof, opaque etc...) for pointof sales advertising campaigns and other promotionalactivities such as posters, banners and hanging signs inpublic indoor places (shops, exhibitions, airports, railwaystations…).

Papers: Maine M1,Maine Opak.

poSter anD DiSplaY

CommuniCation imprimée, publiCité

A range of laminated papers suitable for many cardapplications including: playing cards, pre-paid cards, gift andloyalty cards, SIM cards… Offering an environmentally-friendlyalternative to plastic, excellent opacity and great printingresults.

Papers: Playper,SecureCard, Sequoia.

plaYinG CarDS anD SCratCHCarDS Papiers : Maine M1, Maine Opak.

A range of papers for transferring designs onto naturaland synthetic textiles.This wide and innovative portfolioincludes products suitable for offset litho, silk-screeningand digital print as well as for the sublimation process.

Papers: T105, X90, Digipeel,Sublimage.

tranSFer paperS

The European Ecolabel is issued to products with a smaller environmental footprint. It takes the product’s entire life cycle into consideration: paper pulp, raw materials, manufacturing, and wastes, in addition to covering the major impacts (health, energy consumption, air and water emissions)."Nearly 40% of our products have Eu ropean Eco labe l certification. We are determined to obtain this certification for each of our new recycled ranges,” says Gilles Lhermitte. Updated regularly, the European Ecolabel in 2011 strengthened its requirements regarding used pulp, raw materials and the effects of chemical products on health and the environment: Arjowiggins Graphic met these new criteria in all its certified products.

FSC® (Forest Stewardship Council) is an international not-for-profit organisation established to promote

responsible management of the world’s forests. By standardising its f ibre procurement policy, Arjowiggins Graphic obtained FSC® certification for all its plants. "Since 2007, all the pulp we use comes from certified forests. This is a strategic decision that creates major constraints and forces us to innovate, go the extra mile and consider the paper industry as a whole,” explains François-Régis Arhanchiague, Arjowiggins Graphic Purchasing Director.

ISO 14000 and OHSAS 18000 are standards pertaining to management systems: the first standard concerns environmental management, whereas the second is a model for an Occupational Health and Safety Management System. All the Arjowiggins Graphic plants now benefit from these two certifications.

FOCUS ON… Industrial ecology Industrial ecology involves in particular the construction of a new 60 MW biomass cogeneration unit at the Bessé-sur-Braye site to replace the existing unit. "Steam and electricity will be produced from biomass: more specifically, small pieces of wood. The steam is reused by the plant and the electricity is sold to EDF as green energy. This project, in partnership with CCB (a subsidiary of Dalkia and Cofely), approved by the State and the Energy Regulatory Commission, is an investment that we are making on the future. Above all, it

For a manufacturer like Arjowiggins Graphic, labels

and certifications are the hallmark of transparency.

From management systems to finished products: arjowiggins graphic is certified!

is a true commitment that will enable us to reduce our CO2 emissions fivefold, in addition to making the wood industry in the Sarthe region sustainable and having an impact on the national economy. We are at the core of our conception of sustainable development," explains Agnès Roger, Chief Executive.200,000 tonnes of forest waste will be consumed annually. The project, which has been under discussion for two years and selected by the French Ministry in September 2011, has entered its operational phase. The commissioning of the installation is scheduled for the second half of 2014.

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Recycled pulp delivery - Greenfield mill

"2 years ago, we made a switch to ensure 95%

of our production was on "Green" papers directly

from the Bessé-sur-Braye and Wizernes plants. Offering

these papers for sale is a strong business argument:

it is in keeping with an environmental approach

that is equally important to our customers and to us”

Gilles Fouquet ITF Printing Manager (Sarthe – France).

EU Ecolabel: FR/011/003

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"More than ever, we need to anticipate needs. This is why we always endeavour to create added value for our customers, in particular by offering them innovative partnerships"Jean-Charles Monange, sales and marketing director

AWARDS

Dalum wins the 2011 PPI Award in the"green energy and biofuels" category

Social and economic

commitmentAs a leader in environmental and innovative solutions, we take

full responsibility on behalf of our customers and suppliers;

our product range, based mainly on recycled fibres is unique

to the market. We support our partners and their customers in

their environmentally responsible approaches through strategic

partnerships and we innovate to develop new solutions. Together

we work for a new avenue of corporate sustainable development.

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CLIENT OFFER

Putting more than 70 ecological calculators online, on the websites of European customers.

Integration of Arjowiggins Graphic products into the international WWF "Check your paper" database which compares the environmental performances of different papers.

Arjowiggins Graphic ranked first in the WWF PaperCompany Environmental Index.

"To begin with, the industry was a revolution. Since then, the industrial history has developed continuously, delivering important inventions and innovations. To be responsible is to be attentive to consumers, vigilant as regards to socio-economic indicators and capable of renewal to remain effective," explains Agnès Roger, Chief Executive of Arjowiggins Graphic.Virgin fibre pulp represents approximately 200,000 tonnes per year for Arjowiggins Graphic, i.e. the second core sector of procurement in terms of volume.

This raw material, which is essential for the manufacture of paper is subject to responsible purchasing at several levels: geographical origin, forest management, optimization of transport, etc. Raw material supplies are mainly from Northern Europe for softwood fibres and South America for eucalyptus. The pulp is taken exclusively from sustainably managed forests, which enables the exclusive use of FSC®-certified or controlled origin pulp. "This procurement policy, implemented in 2007, enabled Arjowiggins Graphic to be the first company to produce FSC®-certified coated paper," specifies François- Régis Arhanchiague, Purchasing Director. The routes are designed to bring the pulp as near as possible to the plants.The Le Bourray and Dalum plants produce recycled pulp and use 100% of it to manufacture recycled paper.

A 360° visionFor the company, waste paper is the most significant purchasing area in terms of volume, representing approximately 350,000 tonnes per year, which makes Arjowiggins Graphic the greatest French buyer of office papers for recycling. Although

From plant management to procurement policy,

and from the optimisation of production processes

to waste reduction... In order to be and remain

a responsible industry, Arjowiggins Graphic

includes all parameters and fosters a global

vision of its industry and economic challenges.

A responsible industry

there are twenty different categories, Arjowiggins Graphic purchases mainly high quality papers. In order to improve the collection cycle, the company supports integration enterprises or suitable organisations helping them to expand and organise themselves in the national network. At the same time, Arjowiggins Graphic also advises its customers seeking to implement solutions for recovering office papers. "There is an educational dimension to recycled paper, explains François-Régis Arhanchiague. Customers who purchase recycled paper can only gain from sorting their paper, having it collected and receiving a new batch

of recycled paper. We should not forget that the incineration of paper is a loss of recoverable material, a dead economic loss." Arjowiggins Graphic has closed the cycle by putting collectors in touch with companies.

Energy reduction programme In each plant, audits were conducted to identify areas for improvement and assess the necessary investments. All projects are not necessarily of major importance, as Agnès Roger explains: "the size of the projects varies a great deal, but we know that the sum of small projects will enable us to achieve our objectives, in particular

as regards our partnership with WWF international within the Climate Savers network". Among the improvements, the debottlenecking or remodelling of the manufacturing installation is a practice that has made it possible to increase the production capacity by 10% without requiring a corresponding increase in energy consumption. This strategy generates positive effects from an energy and economical perspective.

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Greenfield plant in Châreau-Thierry.

"Our objective is to offer our customers a solution for their waste

paper collection wherever they are. We will support some hundred

establishments that are part of the social economy with the

development of a paper collection and sorting activity.

Locally, a partnership with the schools in the south of Aisne Region

enables us to help educate children with regard to sorting and

recycling."

Luce CattéPublic Relations Manager, Greenfield SAS.

A wide range of green paperArjowiggins Graphic is without a doubt the European leader in recycled graphic papers. With the Cyclus, Eural and Cocoon ranges, the division offers 100% recycled papers. In 2009, Cocoon Offset and Preprint were the first extra-white papers launched on the market. Their manufacturing process was already the result of work carried out by the R&D department: chlorine-free and based on deinked paper pulp, 100% derived from top-of-the-range and extra-white post-consumption recovery papers.

"Since 2010, we have developed more recycled products than over the last ten years, says Jean-Charles Monange, sales and marketing

director. We have identified the digital sector as a major challenge and we will be the first to offer recycled paper suitable for all digital applications." Looking to the future more than ever before, Arjowiggins Graphic is developing strategic partnerships with printing machine leaders and the greatest ink manufacturers."We are relying on this network of experts to develop innovative and customised products," specifies Jean-Charles Monange.

Improved deinkingThe Greenfield plant is a unique deinking site that processes all types of paper, including digitally printed papers. In 2011, a technical partnership with the manufacturer

Arjowiggins Graphic is continuously innovating

to expand its range of papers and offer cleaner

products for all applications. At the heart of this

strategy, "green" papers form one of the most

comprehensive ranges on the market for both

coated and uncoated varieties. This range was

extended in 2011, in particular in the digital sector

with the launch of Cocoon Jet paper.

Innovating to support the business

Hewlett Packard enabled the improved deinking of documents printed on HP Indigo and HP Inkjet digital presses, for which the recycling rate is still low compared to conventional prints."Studies conducted by HP performed a scientific analysis of the behaviour of these papers during the deinking process, and they showed that our tools were ready for this new generation of paper," says Andrew Findlay, R&D Director.

"In what way can biotechnologies be used? How can we apply enzymes to reduce environmental impact

and costs? These are some of the questions we need to address in R&D to move the company and paper industry forward," explains Andrew Findlay. With this ambition in mind, Arjowiggins Graphic expanded its activities in the plastic market, with, for example, a paper range for shopping bags provided at stores. A project that is still underway would enable the provision of thick, laminated, hard and long-lasting paper to replace the plastic used in loyalty cards or SIM cards. Reducing the environmental impact of manufacturing processes can also lead to cost reduction. The

objective set by the R&D Director is to replace as many of fossil materials as possible with biosourced materials. Lastly, the "health" impact is not forgotten.

PAgES 24 / 25

" Our role consists of coming up with new ideas to reduce

environmental impact and costs, and offer quality papers

that can be used in all machines, including digital.

The R&D units are at the core of our activity."

Andrew FindlayResearch and Development Manager

Deinking pipe – Greenfield plant

Management tablefor sustainable development at arjowiggins graphic

HR 2011 value

Total number of employees 1 .631Number of women 212Number of men 1. 419Number of executives 230Number of non-executives 1. 391Number of permanent contracts 1. 578Number of short-term and temporary contracts 117

Number of professional contracts 17Number of interns 28Average seniority (years) 15Average age 44

ABSENTEEISMRate of absenteeism 2 %

TRAININGTotal number of trained employees 1. 788Number of trained women 176Number of trained men 1.612

HYGIENE AND SAFETYNumber of accidents with work stoppage 19Number of accidents without work stoppage 30

Number of reported accidents 1290

SOCIAL REPORT ENVIRONMENTAL REPORT

Resources 2011 Value

Water withdrawal (in m3/t) 11,9Electricity consumption (in kWh/t) 637Gas consumption (kWh/t) 685Steam purchases (kWh/t) 1.021Bio-energy consumption (kWh/t) 3.005

% of FSC® supplies 84

Water emissionsSSM emissions (in kg/t) 1,1COD emissions (in kg/t) 1,2

Air emissionsCO2 emissions - Scope 1 (in kg/t) 94CO2 emissions - Scope 2 (in kg/t) 286SO2 emissions (in kg/t) 0.001NOx emissions (in kg/t) 0.200

Management tablefor sustainable development at arjowiggins graphic

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Arjowiggins Graphic has paid special attention to eco-design in the manufacturing of this CSR report. This report is printed on recycled Cocoon Silk paper with FSC® certification (No. FSC C021878) and European Ecolabel certification, in full colour with vegetable-based inks. These inks are manufactured from vegetable-based renewable raw materials. They help to reduce the consumption of ink and paper, facilitate the recycling process and reduce VOCs (Volatile Organic Compounds).

An acrylic varnish is applied to all pages in order to protect the coloured prints. The metal stitches used to bind the document are easy to recover and recycle. Due to the document format, similar to an A4, it is possible to prevent the excess waste of paper during printing and converting. Furthermore, this format reduces postage costs. The printer uses the technique recommended by the CTP (Centre Technique du Papier), without producing films that could result in wastes that are detrimental to the environment. This printer has FSC®, PEFC, ISO 9001, ISO 14001 and Imprim’vert * certification.

* Imprim’vert is a French eco-label for green printers. A printer with Imprim’Vert certification must observe specifications and, in particular, eliminate any waste that is harmful to the environment, refrain from the use of toxic products, secure hazardous liquids stored by the printing office, communicate on good environmental practices and monitor its energy consumption.

Thanks to all the environmental processes: , from 100% recycled and FSC® certified paper to vegetable-based inks, from acrylic varnish to metal stitches and up to the multi-certified printer, it is possible to create an entirely recyclable document.

ECONOMIC REPORT

Financial data 2011 Value

Total turnover (in EM) 581

Turnover for recycled ranges (in %)(excluding activity in medical/hospital sector)

42.4

ExpenditureTotal environmental expenditure (in EM) 5.0

Certifications ISO 9001 sites (%) / Volume produced 86ISO 14001 sites (%) / Volume produced 100OHSAS18001 sites (%) / Volume produced 85

Non-qualityAmount of customer complaints (No. / 1,000 t) 3.5

Cost of complaints (in %/turnover) 0,71

32, avenue Pierre grenier - 92517 Boulogne-Billancourt CedexAn environmental calculator is provided on our website to let you determine the

natural resources you have saved by printing your documenton Arjowiggins Graphic recycled paper rather than on virgin-fibre paper.

www.arjowigginsgraphic.com

Manufactured by

By printing

6,000 brochures

on Cocoon Silk

170 and 350 g/m2

rather than on non-recycled

paper, the environmental

impact has been

reduced by :

85kg of C02

1940kWh of energy

855km travelled byan average European car

Source : The carbon footprint assessment is carried out by FactorX in accordance with the Carbon Accounting Methodology. The calculations are based on a comparison between the recycled paper under consideration and virgin-fibre paper in accordance with the most recent information provided in the European BREF (for virgin-fibre paper). The results obtained are based on technical information and are subject to change.

1 282kg of wood

789kg of material sent to Landfill

20 603litres of water

Calculez !

calculator

Reduce your environmental impact by using our recycled paper

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