Printing in an African - Rotogravure

Printing in

an African

context

Paarl Media Group

Paarl Media Group

• Ten specialized printing plants

• Seamless transfer of files between plants

• Printing same product in different locations

• Extensive capacity and capability

• Reduced distribution costs and

turnaround times

Paarl Coldset

Printing

Plant

Press Capacity Mailroom Pre-press

Johannesburg Geoman

8 towers, 3 folders.

Uniset


64 B/S, 70 000 cph.

36 B/S, 75 000 cph.

100 000 tons

2 Muller Martini

Newsliners, 4 hoppers

each, 35 000 cph

4 Muller Martini

SLS3000, 3 with 4 and

1 with 8 hoppers,

32 000 cph

3 Agfa Polaris CTP

lines, 540 plates per

hour, 2 Nela plate

benders,

Arkitex / Sublima

Workflow

Cape Town Geoman


Uniset


32 B/S, 70 000 cph

16 B/S, 75 000 cph.

50 000 tons

2 Ferag MSD2 inserting

lines – 8 hoppers each

– 45 000 cph.

1 Ferag MSD2 – 7

hoppers– 37 000 cph.

1 Ferag ETR – 6

Hoppers – 32 000 cph

3 Krause LS jet CTP

lines,

720 plates per hour.

Arkitex / Sublima

Workflow

Paarl Coldset

Printing

Plant

Press Capacity Mailroom Pre-press

Durban KBA Comet

6 towers, 2 folders

15 000 tons 2 Krause CTP lines.

Port Elizabeth Uniset

3 towers, 1 folder.

Cromoman

1 towers, 1 folder.

12 B/S, 60 000

copies.

4 B/S, 45 000 copies.

15 000 tons

1 Muller Martini

SLS3000

32 000 cph

6 hoppers

2 Krause CTP lines.


Arkitex / Sublima

Workflow

Bloemfontein Goss Urbanite

8 Units, 2 folders

16 B/S, 40 000 cph.

7 500 tons

1 Ferag Easysert

inserting.

6 hoppers.

25 000 cph

3 ECRM

CTP lines.


Arkitex /Sublima

Workflow

Paarl Media Cape

• More than 125 000 tons annual capacity • 54 000 m2 of production facilities • High to medium volume top-end catalogues, magazines and commercial work • Publication gravure and heatset web offset plants merged in 2010

Paarl Media Cape

• Heatset web offset presses • 1 x 16 page manroland Rotoman, 578mm cut-off, with complete inline stitching, gluing

and trimming: prints up to 65 000 full colour copies per hour (2010) • 1 x 48 page manroland Lithoman: prints up to 45 000 copies per hour (2005) • 1 x 64 page manroland Lithoman: prints up to 45 000 copies per hour (2007)

Paarl Media Cape

• Three publication gravure presses, all with inline stitching, gluing and trimming. More than 12 000 format possibilities with 1 400 cylinders.

Paarl Media Cape

• Largest bindery in Africa • 2 x 18 000 and 1 x 15 000 Kolbus Publica Perfect Binders (installed between 2006 & 2011) • 2 x Muller Martini 20 000 speed Tempo Saddle Stitchers (2002) & 3 x Muller Martini Prima

Plus saddlestitchers • 2 Steinemann UV varnishing machines (2008 & 2010) • Extensive hand finishing and mailing capabilities • 2 x Muller Martini 14 000 speed Prima Plus Binders (2008)

Paarl Media Gauteng

• Established in 2005 to specifically service the Johannesburg market with an initial

investment in excess of R600m • 75 000 tons annual capacity • 30 000 m² of production facilities • High to medium volume ballots, quality commercial work and magazines • Registered security printer

Paarl Media Gauteng

• An 80-page manroland Lithoman web offset press with varying reel widths of 860mm to

2060mm (2010). Includes inline gluing, trimming, stitching and inserting functionality. Prints up to 45 000 80-page copies per hour.

• Three 16 manroland Rotomans, with 578mm and 620mm cut-off (2005, 2007, 2009). Offer quick make-ready and printing speeds up to 65 000 full colour copies per hour.

Paarl Media Gauteng

Expanded bindery facilities : • 2 x 15 000 speed Kolbus Publica PUR binders (2008 & 2010), is backed up by a Muller

Martini Normbinder. • One Muller Martini C140 Primera saddle stitcher (2011) • Three Muller Martini Prima Plus gangstitchers (2 X 2005, 1 X 2007) • 1 x Steinemann Colibri UV varnishing machine (2008)

Paarl Media Paarl

• High volume books, ballots, specialised magazines and covers, promotional and direct

marketing material, as well as financial reports • Sheetfed, specialised book and web offset printing • Awarded Sappi African Printer of the Year 2010

Paarl Media Paarl

• Komori Lithrone S1040P ten colour long perfector • Komori Lithrone S840P eight colour long perfector • Komori Lithrone S640C six colour with anilox coater • Specialised web offset press, manroland Octoman, for promotional and direct marketing

material: 50 000 impressions per hour • Unique book press, manroland 901/1 backprinter (2010) for single colour book printing

Paarl Media KZN

• New plant established in Durban with an initial investment of R200 million.

• High to medium volume quality commercial work, ballots and magazines.

• Two 16-page manroland Rotoman presses with 578mm cut off: prints up to 50 000

full colour copies per hour. Includes high gloss coating and inline gluing and

trimming.

• Binding and finishing services with saddle stitching and perfect binding.

New publication gravure press

• Cerutti Rotogravure Publication Aurora Press

• 2nd of its kind to be installed (first at Abril, Sao Paulo)

• Purchased September 2011, to be in production August 2012

Why a New publication gravure press ?

• An enormously vibrant retail market in South Africa

• A retail market in Sub-Saharan Africa which is set for exponential growth

• A great desire for super calendared paper in both the retail markets and mass

magazine market

• A complete range of tabloid sizes are still in vogue with commercial clients and

evidence of this is increasing.

• A catalogue market which shows signs of stability and sustainability

• A constant need for shorter lead times.

Cerutti Publication Gravure Aurora Press

Net production speed

+ 21%

Job changeover time 1 hour

Waste at start-up - 33%

Energy consumption - 12%

Manning required on the press - 25%

Total Publication Gravure Capacity

• 54 000 tonnes of publication gravure capacity

spread over four presses:

• 3 Cerutti

• 1 KBA

Population of South Africa

'000s

2002 2010 2011*

Black 36.0 39.6 40.2

Coloured 4.0 4.5 4.5

Indian 1.1 1.3 1.3

White 4.3 4.4 4.6

Total 45.5 49.9 50.6

Source: General Household Survey, Stats SA

*Mid-year Population Estimates 2011

• Still experiencing population growth • Middle class growing at a rate exceeding that of the population growth

Proportion of Population by Age Group & Race, 2011

Black Coloured Indian White Total

Age % of Total

0-14 33.4 27.6 22.4 18.1 31.3

15-29 30.5 25.8 26.5 20.2 29.0

30-59 29.9 39.3 40.0 41.1 32.0

60-80+ 6.2 7.3 11.1 20.6 7.7

Total 100 100 100 100 100

Source: Stats SA, Mid-Year Population Estimates 2011

• Extremely young population by comparison to Europe • Emphasis is on literacy up to tertiary education level

• History of good GDP Growth

Average Annual Growth Rate in GDP (%) by Sector

1981-1993 1993-2001 2001-2009

Agriculture * 0.6 1.2 2.0

Mining * -0.2 -0.6 -0.9

Manufacturing * -0.4 3.1 1.8

Electricity * 3.5 1.8 3.2

Construction -2.8 1.8 9.5

Trade Sectors 0.7 3.9 3.3

Transport & Comms 0.8 6.7 5.2

Financial Services 2.0 4.7 6.3

Personal Services 2.6 1.1 3.3

General Government 2.6 0.1 3.1

TOTAL 0.6 2.9 3.7

* Export oriented sectors

-10

-5

0

5

10

15

20

04 05 06 07 08 09 10 11

Gro

wth

(%

)

Growth in Retail Sales

Source: Statistics South Africa

Retail Sales According Type of Dealer at Constant 2008 Prices (%)

Weight

2010 1st Qtr 11 Apr 11 May 11 Jun 11

y-o-y % y-o-y % y-o-y % y-o-y % y-o-y %

General Dealers 38.1 4.5 5.1 7.9 5.5 3.4

Food, Beverages & Tobacco 9.3 1.4 -4.0 6.6 -9.0 -4.1

Pharmaceutical, Medical Goods, Cosmetics & Toiletries 6.5 11.1 11.0 12.3 3.2 9.2

Textiles, Clothing, Footwear & Leather Goods 21.0 8.1 5.2 16.2 -2.5 2.9

Household Furniture, Appliances & Equipment 6.3 15.2 10.4 12.7 3.5 6.2

Hardware, Paint & Glass 6.3 -3.3 13.3 9.2 -9.0 -3.0

All Other Trade 12.6 2.4 6.7 6.2 -2.4 -0.7

Total 100.0 5.2 5.7 10.0 0.2 2.2

Source: Stats SA

• Furniture and appliances are a serious growth industry and more than 50 % of publication gravure printing stems from this.

• Strong case for borrowing

• Willingness to leverage assets for greater consumption

Medium 1975 1990 2000 2010

TV Stations nil 7 56 100

Radio Stations (separate buys) 7 34 105 138

Daily Newspapers 22 22 17 21

Major Weeklies 19 25 21 26

Consumer Magazines 180 250 480 655

Business to Business 219 300 580 700

Community Newspapers uncounted uncounted 260 470

Web Pages N/A N/A 1.4 bn trillions

Growth of media in SA…

Positives for South African Outlook

• Although growth weaker than other emerging markets, it is likely to outperform

developed economies

• Low government debt levels compared with developed economies

• Sound fiscal & monetary policy being sustained

• Beneficiary of commodity price cycle & African recovery

• Fully fledged democracy, coupled with media freedom & independent judiciary &

sanctity of contracts prevent socio-political turmoil

Positives for South African Outlook

• Magnificent work being done by NGO’s

• Private sector still functioning relatively efficiently

• SA invited to join BRICS

• Strong retail growth

• Positive growth in print media advertising

• Stronger household consumption

• Many global companies have underestimated the impact of Africa’s size

• The following countries could fit within Africa

Topography

China 3,705,390 sq.mi

United States 3,618,770 sq.mi

India 1,266,595 sq.mi

Europe 1,905,000 sq.mi

Argentina 1,065,189 sq.mi

British Isles 94600 sq.mi

Total 11,655,544 sq.mi

Africa’s area 11,707,000 sq.mi

Source: Maps of the World

IMF Forecasts for Growth of Sub-Saharan Countries

2012-2016

Zambia 7.7

Mozambique 7.7

Tanzania 7.2

Angola 7.1

Uganda 6.9

Kenya 6.7

Democratic Republic of Congo 6.4

Nigeria 6.2

Ghana 6.1

Côte d'Ivoire 6.0

Botswana 5.5

Malawi 5.3

Senegal 5.2

Zimbabwe 5.1

Lesotho 4.7

Namibia 4.4

Mauritius 4.4

South Africa 4.4

Swaziland 2.3

Source: IMF WEO, Apr & Jun 11

Internet Usage

June 2010 Internet Users User Growth (2000-2010)

Penetration

(% of Popu)

Tunisia 3 600 000 3500.0 34.0

Morocco 10 442 500 10342.5 33.0

Nigeria 43 982 200 21891.1 28.9

World 1 966 514 816 444.6 28.7

Egypt 17 060 000 3691.1 21.2

Algeria 4 700 000 9300.0 13.6

Zimbabwe 1 422 000 2744.0 12.2

Africa 110 931 700 2357.3 10.9

South Africa 5 300 000 120.8 10.8

Kenya 3 995 500 1897.8 10.0

Uganda 3 200 000 7900.0 9.6

Zambia 816 700 3983.5 6.8

Namibia 127 500 325.0 6.0

Botswana 120 000 700.0 5.9

Libya 353 900 3439.0 5.5

Ghana 1 297 000 4223.3 5.3

Angola 607 400 1924.7 4.6

Lesotho 76 800 1820.0 4.0

Cameroon 750 000 3650.0 3.9

Tanzania 676 000 487.8 1.6

Congo, Dem. Rep. 365 000 72900.0 0.5

Source: Internet World Stats

Africa internet users

Internet usage South Africa

YEAR Users Population % Pen. Usage Source

2000 2,400,000 43,690,000 5.5 % ITU

2001 2,750,000 44,409,700 6.2 % IWS

2002 3,100,000 45,129,400 6.8 % ITU

2003 3,283,000 45,919,200 7.1 % Wide World Worx

2004 3,523,000 47,556,900 7.4 % Wide World Worx

2005 3,600,000 48,861,805 7.4 % Wide World Worx

2008 4,590,000 43,786,115 10.5 % W.W.W

2009 5,300,000 49,052,489 10.8 % W.W.W

http://www.theworx.biz/

http://www.theworx.biz/

http://www.worldwideworx.com/

http://www.worldwideworx.com/

Increasing aid for education

Country Total

population

GDP Growth School

population

Aid received spend on

education USD

Nigeria 155,215,573 6.4 % 64,545,000 102,000,000

Ethiopia 90,873,739 8.1 % 35,402,000 234,000,000

DRC 71,712,867 6.5 % 30,172,000 86,000,000

Tanzania 42,746,620 7.1 % 18,974,000 110,000,000

Kenya 41,070,934 6.5 % 16,576,000 111,000,000

Uganda 34,612,250 6.7 % 15,512,000 125,000,000

Angola 13,338,541 7.5 % 8,161,000 60,000,000

Zimbabwe 12,084,304 5.6 % 5,015,000 25,000,000

Rwanda 11,370,425 6.7 % 4,102,000 91,000,000

TOTAL 473,025,253 198,459,000 944,000,000

Note: These figures exclude any spend by government on Education.

Sources: EFA Global Monitoring Report 2011, RMB FICC Research: August 2011

What does this mean for publication gravure

printing in South Africa?

• South Africa has a vibrant publication gravure market with eight publication gravure presses

• GDP growth, retail growth and literacy will keep the written media popular culture • Advertising growth continues to increase all media possibilities • A growing population and the advent of the middle class leads to an increase in

aspiration and associated advertising • Growth in literature programmes means additional printing opportunities

Publication Gravure: Catalogue & Retail

Work in South Africa


Work – Paarl Media Group

Total value in excess of R 352 million Tonnage in excess of 22 000 tons Grades of paper used: SCB 49gsm SCA 52gsm LWC 60 - 80gsm

• Products vary between A4 – tabloid – broadsheets • Pages 4 / 6 / 8 / 12 / 16 / 20 / 24 / 32 • Tonnage 1 900 tons per month • The market takes full advantage of the cut off flexibility offered by the

gravure process • Print runs vary between 2 million – 10 million copies per product • Covering between 20 – 50 individual products per month





DBE Workbook Project

• South African Department of Basic Education (DBE) launches workbook project

in 2010 to assist literacy and numeracy skills development in schools

• First phase:

• 24 million books, 105 titles, distributed to 18 475 schools throughout South

Africa

• Next phase:

• 46 680 762, 306 titles, distributed to 24 989 schools

What does this mean for Printing in Africa?

• Two cornerstones: Democracy & Literacy

• These will lead to investment, retail, economic growth

• These will require infrastructure, distribution, printing

• The Paarl Media Group is already represented in Nigeria, DRC, Angola,

Zimbabwe and Mozambique

Examples of work in Africa

• Paarl Media African printing experience

• Paarl Media has experienced increasing success in securing print work for elections and education.

• Elections

• DRC in 2006.

• Nigerian elections printed in 2007 and 2011.


• Paarl Media African printing experience • Paarl Media has experienced increasing success in securing

print work for elections and education. • Education • Angola • Zimbabwe • Mozambique • Botswana, Zambia and Namibia – turnover secured from

Via Afrika. • DRC • Malawi


• Paarl Media African printing experience

• Other print work

• Zimbabwe – Zionist Church

• Nigeria – Christ Embassy Church

• Angola – law books

Printing in an African - Rotogravure

Documents