Embed Size (px)
Citation preview
Company Presentation Cham Paper Group
Peter Studer, CEO Cham Paper Group Holding AG
February 12, 2010
� This presentation contains forward-looking statements which contain various known and unknown risks, uncertainties and other factors which could lead to material differences between actual and future results, financial situation, development or performance and the estimates given in this presentation.
� The information given in this presentation contains adjusted financial key figures, which reflect the management's point of view in respect of enabling an evaluation of the company´s performance based on its business activities. For the complete figures, only the half-yearly and annual reports of Cham Paper Group are relevant.
2
Disclaimer
Locations
Cham Paper Group with its
producion sites in Cham,
Carmignano and Condino
is anchored locally and
networked globally
Carmignano, Italy
Condino, Italy
Cham, Switzerland
Annual capacity: 250,000 tonnes
5 Special paper machines (MF and MG)
3 Off-line coaters
1 On-line coater
1 Curtain Coater
Super calender, machines calender, winders and cutting machines
Coated and uncoated speciality papers of 35 g/m2 to 270 g/m2
Overview Paper Mills Cham Paper Group
General (historical) Challenges:
� Not enough focus in strategy
� Multiple burdening exceptional items and problems with production site in Hunsfos
� Partially missing processes
� Loss of acquisition capability
Ongoing measures since 2006:
� Focus on speciality papers
� Gradual unbundling and solving of problematic cases
� Improvement in efficiency (project „Speed“) and streamlining of organization
� Strengthening of sales by establishing a Group appearance
General staring point before „CPG stand-alone“ in 2009
5
� Pursue the focus on speciality papers systematically
� Deepen the co-operation with (end) users
� Adding value and differentiation by „more than paper“
� Remain the leader in innovations
� 660 qualified employees
Financial objectives:
� Growth (existing operations): 5% p.a. (+ 1% above market)
� EBIT margin: 5 - 12% over the business cycles
The future of Cham Paper Group:
Strong market position and high potential based on functionality
6
Speciality Papers are attractive
7
� The top-segment of paper industry is huge
� Higher margins thanks to customer benefits/functionality
� Stable prices because of strong cooperation with customers
Commodity paper:
361.1 MTPA
Premium paper:
15.6 MTPA
Specialty paper:
5.3 MTPA
� Operating margins� Customer loyalty
Market size:
USD 22 bn
Market size:
USD 288 bn
Total market size:
382 MTPA (USD 310 bn)
Low cyclicality
High cyclicality
� Leading market position in Europe
(81% of sales)
� Big differences between competitors
� Only 70% of the capacity of 250‘000
tonnes with 5 machines in 3 paper mills
isused today
� „Swissness“ as an advantage
� Increasing prices of raw materials can
be passed on usually
� Mostly stable markets
Strong foothold in Europe and lot of additional capacities
thanks to increase in productivity
8
81%
7%
7%5%
Europe
America
Asia
Rest of the World
73%
27%
Utilization 2008
Free capacities
Regional sales volume
Capacity utilization
Broad product-diversification in stable markets
9
Segment Products Operational area
Share in
revenues
2008
Relative
cyclicality
Technical base
papers
Inner liner for tobacco
industryPaper for tobacco industry 16%
Wet glue labels
Wet glue beverage labels
Oil/grease repelient label
papers
premium labels for food industry
6%
SpecialitiesTransfer printing on fabrics
Metallised label papers 3%
Self-adhesive base
papers
Clay coated Kraft (CCK),
Glassine for labels,
Glassine for coated
labels
Silicone papers , roll labels, pvc-
foil, cosmetic packaging, wine
bottles, self-adhesive advertising
materials
44%
Flexible packaging
papers
Clay coated base
papers,
Uncoated base
papers, Oil/grease
repelient label,
Speciality papers for
confectionary products
Food packaging of all types
including yoghurt pot lids
packaging for products
containing fat products
containing fat or grease
Soap packaging
24%
Digital ImagingInkjet papers
Digital sublimation
paper (Transjet)
Water based printing
solutions for plotter systems
Indoor/outdoor media
applications
CAD sector (engineers,
architects, copy shops)
Photo-realistic printing
7%
Four-pillar strategy to generate value
Operational Efficiency – Value Chain Management – Supply Chain Management – Innovation
10
Generating customer and shareholder value
Opera
tional
Eff
icie
ncy
Valu
e c
hain
M
anagem
ent
SC
M
Innovation
Human Capital
Measures to enhance operational efficiency continue
11
2006 - 2009 2010 – 2012
SPEED: Process – Standardization Procurement management
SPEED: Product – Standardization Mill development plan
SPEED: Supply Chain Management(from “stocks” to “availability”)
Asia: make or buy?
Capacity enhancement from 210’000 to 250’000 t(Coating capacity 280’000-300’000 t)
Service Level Agreements – from plant efficiency to group efficiency
Lead time: from 4-6 weeks to 4-6 days Steady optimization (e.g. energy)
Repositioning by active Value Chain Management
12
Universities and Technical Colleges
Raw MaterialDirect customers:Converters
End-User
Labelexpo Europe September 2009: First presentation in a new look
13
• Show benefits, not products
• Sit around one table with customers and converters
• Sustainability as a big topic
• 200 contacts for further processing
� Investments in new technologies: curtain coater
– Investment volume of approx. CHF 20.0 million (2008-2009)
– Theoretical production capacity of approx. 65,000 tonnes
– Start of production: April 2009, pioneering products in the certification
process
� Increasing share of new products in total sales
– Turnover of new products more than 20%
� New applications with good prospects
– Nanotechnology
– Printed electronics (RFID)
– Barrier-function in FlexPack
Cham Paper Group´s innovative power
14
15
Innovation example I: Product Silico Premium
Product Description
� Paper: Clay Coated Kraft
� Assortment: Industrial Release
� Application: Graphic art for advertisement
� Positioning: PE-paper alternative
� Uniqueness: CC coating increases paper
functionality. Used in high-end markets
(2,300 EUR/t), no longer in mid-range
markets (1,300 EUR/t)
Added value for customers
� Market cultivation:
Sustainability (no polyethylen)
Lower disposal costs
Improved cost structure
� Internal processing advantages:
Higher speed of production
Simplified process control
Other growth drivers in reach
16
� Growth target of existing business: 5% p.a.
� Special paper market growth: 4% p.a.
� Expansion to China
� More ecology in daily life (plastic vs. paper)
� Expansion of business fields as result of the
curtain coater technology
� Pro-active part in the consolidation of the
industry because of the solid structure of the
balance sheet
In general ▪ A lot of non/little-profitable companies: opportunities
▪ Conversion / finishing of only ≈ 10% of paper production
▪ Demand for environment-friendly/resource saving technologies
17
Innerliner market ▪ Growth: 11.8% p.a. (USA: 2.5%, Europe: 1.5%)
▪ More and more anti-tobacco campaigns and regulation
i.e. less promoted segment
FlexPack ▪ Growth: 15% p.a. (globally: 4.9%)
▪ Drivers:
- strongly increasing demand for food, pharmacy, etc.
- well-funded customers focus on quality and brand image
▪ Stimulating new technologies and knowhow
Self adhesive ▪ Growth: 17% p.a.
paper ▪ China‘s shift from net importer to net exporter
▪ Stimulating new technologies and knowhow
Growth generator China (CPG analysis summer 2009)
EBIT – 5 to 12% is a realistic target
18
Operational efficiency
Value Chain Management
Innovation
Basis: 2004 -2008
EB
IT 5
-12%
4.8
%
EBIT – Influencing factors for the financial year 2009
19
Positive impact Negative impact
External factors
� Lower pulp prices
� Lower costs of raw materials
� Lower energy costs
� Business cycle, slump in volume (>10% below previous year)
� Reduction of inventories until end of Q1-09
� Negative currency effects
Internal factors
� Strict cost control thanks to contingency planning and short-time work
� Stable prices
� Reduction of net working capital
� SCM – high delivery performance
� Acquisition of new customers
� Lack of coordination of processes
� Diversification of customer portfolio
� Higher development costs (product innovations)
� Expansion of sales + marketing
• Flexible packaging: Additional market share and constantly high quality lead to an
increase of 20% in quarterly sales volume compared with the prior year‘s quarter
(YTD +15%)
• Adhesion (pressure sensitive): Turnaround - after severe drop in the first half of
the year, returns are on the same level compared with prior year‘s quarter returns
(YTD -13%)
• Technical papers (e.g. inner liners for cigarette pack): Market recovery is going
on, sales are comparable with previous year after a very weak start in 2009. CPG
profits from the ongoing trend to metalized papers (YTD -20%)
• Digital Imaging: Advertising market recovers, CPG sets the tone with new
products. Q3 tops sales of the previous year (YTD -8%)
Q3/2009 operative business - Divisions
20
Key figures as of end Q3-2009:
Market recovery goes on
21
(in CHF million, unless indicated otherwise) 30.09.2009 30.09.2008 change 30.06.2009
Net revenue 229.0 274.5 -16.6% 149.4
EBIT 7.9 13.4 -41.0% 1.0
EBIT margin 3.5% 4.9% -28.6% 0.7%
Consolidated net income 10.9 6.5 67.7% 5.9
Sales volume ( in tonnes) 133'775 145'925 -8.3% 86'260
Free cash Ffow 26.8 4.9 446.9% 13.1
(in CHF million, unless indicated otherwise) 30.09.2009 31.12.2008 30.06.2009
Net working capital 96.1 138.3 97.4
Net interest-bearing liabilities 35.9 134.7 49.9
Liquid assets (Group) 76.6 15.6 75.7
Shareholders’ equity 211.4 269.0 206.4
Equity ratio 53.7% 52.1% 51.8%
Book value/share 303.60 388.10 297.65
22
Cham Paper Group Holding AG
Fabrikstrasse
CH-6330 Cham
Tel +41 (0)41 785 33 33
www.cham-group.com
Contact for Investors: Share Register:
Edwin van der Geest Franziska Stöckli
[email protected] [email protected]
Tel. +41 79 330 55 22
Stock Information: Dates:
Issued shares: 745‘000 Publication annual report 2009: 17 March 2010
Treasury shares as of 30.9.09: 48‘635 Annual General Meeting: 29 April 2010
CPGN / CH0001931853
