BA Pulp & Paper Chemicals

Transcription

1 BA Pulp & Paper Chemicals Lauri Junnila President of Pulp & Paper Chemicals Capital Markets Day 12 September 2006 BA Pulp & Paper Chemicals Strategy Vision Statement We are the Leading Supplier of Chemicals and Chemical Solutions to the Pulp and Paper Industry Covering the Entire Value Chain from Pulp to Coater Globally 2 1

2 BA Pulp & Paper Chemicals Strategy Key Elements of our Strategy Managing a fast growing globally leading business Fundamental shift from country driven organisation to competence driven global structure Strong penetration into Emerging Markets Building a globally leading highly synergistic PPC Business portfolio with emphasis on Total Chemical offering Active participation in industry consolidation Strong emphasis on R&D and competence development 3 BA Pulp & Paper Chemicals Strategy Selling Competence instead of Products Business organization (sales, R&D, production) Product Line organization Selling competence The Business owns the customer Increase in complexity, risk and reward Country organization Selling products The Country Manager owns the customer Product & Product Total concepts Service Groups & incl. responsibility Service 4 2

3 BA Pulp & Paper Chemicals Strategy Product Offering Today Pulping & Bleaching Paper making Coating Pulping Sodium Hydroxide (Caustic Soda) Sulfuric Acid Defoamers Deposit Control Agents Bleaching Sodium Chlorate Chlorine Dioxide Hydrogen Peroxide Dithionite Sulfuric Acid Sulfur Dioxide Peracetic Acid Additives 5 Process Chemicals Retention Chemicals Deposit Control Agents Defoamers Water Treatment Chemicals Deinking Chemicals Functional Chemicals Sizing Chemicals Wet & Dry Strength Chem. Fluorescent Whitening Agents Colorants Fillers Calcium Sulfate Titanium Dioxide Coating Pigments Calcium Sulfate Titanium Dioxide Additives Dispersants Preservatives BA Pulp & Paper Chemicals Strategy PPC Global Coverage Americas Revenue in 2005 Meur 430 (40.2%) Employees 814 Factories: 11+1 Europe Revenue in 2005 Meur 590 (55.1%) Employees 1500 Factories: 19 Asia Revenue in 2005 Meur 50 (4.7%) Employees 95 Factories: 2 62 Locations in 34 countries Sales and Service: 44 locations Production: 33 sites 6 3

4 BA Pulp & Paper Chemicals Strategy PPC Global Coverage Customer Kemira 7 BA Pulp & Paper Chemicals Sales & Personnel by SBU & Region PPC Revenue Meur 2005 Pro Forma Pulp Chemicals Paper Chemicals Pigments & Additives BA PPC Revenue Personnel Revenue Personnel Revenue Personnel Revenue Personnel Europe N-A S-A Asia Total

5 Pulp & Paper Chemicals Financial Development MEUR Revenue EBIT & ROCE MEUR % Q1 Q2 Q3 Q4 EBIT % ROCE The figures are not fully comparable. 9 BA Pulp & Paper Chemicals Key Customers We serve world class pulp and paper producers globally World Top 10 producers have 27% share of total PPC sales 10 5

6 Acquisition of Lanxess Kemira #1 in Pulp & Paper Chemicals Situation in total Ciba 900 MEUR Kemira 739 Akzo Nobel 750 BASF 730 Hercules 730 Dow 670 Nalco 550 Process & Functional wet end chemicals Hercules 710 MEUR Ciba 580 Nalco 475 BASF 270 EKA 265 Kemira 270 Lanxess 240 Situation after the acquisition Kemira 1070 MEUR Ciba 900 Akzo Nobel 750 BASF 730 Hercules 730 Dow 670 Nalco 550 Situation after the acquisition Hercules 710 MEUR Ciba 580 Kemira 510 Nalco 475 BASF 270 EKA 265 Clariant Acquisition of Lanxess Milestones People: Customers: All key people retained Highly-motivated and skillfull team joined Kemira Headcount reduction actions progressing as planned Global roadshow conducted prior to the closure Financials: Business performing better than estimated Annual synergies coming faster than estimated ( 8million/20 million achieved) Synergy costs lower 2006 than estimated No impact on Kemira Oyj EPS in 2006 Smooth transfer 1 April No customers lost New business from Far East and South America Kemira PPC now more global than our global customers Integration: High focus on supply chain After 5 months business is becoming as usual In-house M&A and integration model in place 12 6

7 Business Drivers Chemical Cost of Different Paper Grades Eur/ton Pulp Chemicals Paper Chemicals Kemira Portfolio 0 Newsprint Kraftliner SC UWF CWF LWC Market Growth* 1.4% 2.7% 1.3% 2.4% 2.7% 1.8% * Jaakko Pöyry Kemira management est. 13 Business Drivers General Trends Lighter paper, more fillers Continuous increase in paper quality More recycled fibre as raw material Less fresh water used in process + Increasing the usage of P&P chemicals + More complicated chemistry Energy prices going up Oil prices going up Paper industry faced with profitability challenges Growth in emerging markets + Process chemicals even more important (higher OEE ) - Customer profitability decline + Bigger P&P chemicals companies have stronger R&D resources for new solutions - Oil based chemicals profitability + Opportunity for outsourcing (total solutions) and cost benefits for customers - Pressure on all costs incl. chemicals Consolidate in mature markets & Invest for growth in emerging markets 14 7

8 Market Position By Region Region Market size 2005, M Growth Rate % PPC s Market Position Market share % / value (M ) Europe North America South America > Asia RoW > Total Market Position PPC has the best Integrated Portfolio* Pulp & Paper Chemicals Suppliers Product Groups Kemira Ciba Hercules Eka BASF Dow Nalco Clariant Buckman Process Chemicals Sizing & Wet Strength Colorants Bleaching Coating Net Sales Market Presence small medium strong * 60% of the World P&P capacity is integrated [Jaakko Pöyry] 16 8

9 BA Pulp & Paper Chemicals Strategy Vision Statement The Leading Supplier of Chemicals and Chemical Solutions to the Global Pulp and Paper Industry Build a globally leading highly synergistic PPC Business portfolio Managing a fast growing globally leading business Strong penetration into Emerging Markets The entire Value Chain from Pulp to Coater 17 Business Description - Summary Potential for capturing the benefits of scale and presence Strongest Integrated Portfolio Global Precence Pulping & Bleaching Pulping Sodium Hydroxide (Caustic Soda) Sulfuric Acid Defoamers Deposit Control Agents Bleaching Sodium Chlorate Chlorine Dioxide Hydrogen Peroxide Dithionite Sulfuric Acid Sulfur Dioxide Peracetic Acid Additives Paper making Process Chemicals Retention Chemicals Deposit Control Agents Defoamers Water Treatment Chemicals Deinking Chemicals Functional Chemicals Sizing Chemicals Wet & Dry Strength Chem. Fluorescent Whitening Agents Colorants Fillers Calcium Sulfate Titanium Dioxide Coating Coating Pigments Calcium Sulfate Titanium Dioxide Additives Dispersants Preservatives Strong Customer base Performance Kemira Pulp & Paper Chemicals Sales Development MEUR '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 B'06 Growth Rate: 8% 11% 40% 18 9

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