Akzo Nobel N.V. · EURONEXT:AKZA
Akzo Nobel — AkzoNobel Eka Chemicals — Investor Presentation (2010)
40 slides from Akzo Nobel's investor presentation, 2010
Slide 1: Eka Chemicals: What we do
AkzoNobel Eka Chemicals Tomorrow's Answers Today What we do eka
Slide 2: Facts
Facts • We have been helping paper manufacturers to improve their products for more than 100 years • We are the leading global supplier of bleaching chemicals used in pulp manufacture, and performance chemicals used for the production of paper and board • We also make specialty chemicals used in wat
Slide 3: Part of your everyday life…
“Part of your everyday life…” Eka Chemicals company presentation 3
Slide 4: Pulp, paper, and more
Pulp, paper, and more Eka Chemicals company presentation 4
Slide 5: Company development
Company development • From a general chemical producer d tto a ffocused d supplier of a full range of pulp and paper chemicals • From a local to a global player through launching of new products, d t investments i t t and acquisitions • From product supplier to interactive working partner Eka Chemic
Slide 6: Company development: Milestones
Company development Milestones 1895 Elektrokemiska AB founded 1950 Subsidiary of Iggesund, bleaching 1981 Compozil (silica sols) introduced 1986 A division of Nobel Industries 1990 Globalization through acquisition of Stora Kemi and Albright & Wilson’s paper chemicals operations 1994 Nobel Industrie
Slide 7: Organization
Organization Eka Chemicals Ruud Joosten President Research, Business Research Technology and Control and Finance development and Human Resources Engineering Information Mgt. Communications Agneta Gerdner Gunilla Nord Gijsberth de Ruiter Lars Andersson Pulp and Paper Pulp and Paper Pulp and Paper Spe
Slide 8: Global operations
Global operations Located where pulp and paper is produced Million tons pa. Pulp production* Europe P Paper production d ti 109 Eka production plants 2010 North America 47 89 67 170 Asia South America 31 21 20 Pulp numbers does not include non non-wood wood pulp production which is hard to quantify
Slide 9: Bleaching chemicals
Bleaching chemicals Eka is the leading global supplier of bleaching chemicals chemicals, with the following program: Chemical pulp • Sodium chlorate • Hydrogen peroxide • Chlorine dioxide Mechanical pulp • Hydrogen H d peroxide id Application know-how Eka Chemicals company presentation 9
Slide 10: The chemical bleaching process
The chemical bleaching process Cooking Washing Pre-delignification Pre-bleaching Final bleaching Wood Bleached eac ed Chemicals pulp Energy Chemical recovery External treatment E Energy recovery ~~~~~~~ ~~~~~~~ Eka Chemicals company presentation 10
Slide 11: Paper chemicals
Paper chemicals Eka is a leading supplier of wet end d paper chemicals h i l with ith a wide id range of products • Wet-end chemistry • Retention • Dewatering • Sizingg • Dry strength • Wet strength • Softeners • Surface sizing • Coating • Water Treatment • Purate® Eka Chemicals company presentation
Slide 12: The paper machine
The paper machine Wet-end Press section Coating • Retention • Cross linking g • Sizing • Dry strength • Wet strength • Softeners Dryer section • Surface sizing Dewatering Water treatment Eka Chemicals company presentation 12
Slide 13: Eka in pulp and paper
Eka in pulp and paper Application Pulp manufacturing Pulp Paper machine Coating Recycled y fiber Function Bleaching Deinking Retention Sizing Wet strength Coating Water treatment Eka Sodium chlorate Emulsions Colloidal AKD PAAEs AZC products Chlorine dioxide Soaps silica Rosin size Softeners Ca stea
Slide 14: Specialty products
Specialty products Product segments • Expancel® • Separation Products • Kromasil® • Permascand • Industrial Specialties • Colloidal Silica Group • Fine Chemicals • Purate® Eka Chemicals company presentation 14
Slide 15: Eka Chemicals: What we stand for
Eka Chemicals What we stand for
Slide 16: Vision
Vision • Be the preferred supplier of pulp and paper chemicals globally • Develop related businesses that support and contribute to our overall performance • Grow through innovation and unique know-how Eka Chemicals company presentation 16
Slide 17: Values
Values We believe in • focusing on our customers’ future first • embracing entrepreneurial thinking • developing the talents of our people • the courage and curiosity to question g y and responsibility • integrity p y in our actions Eka Chemicals company presentation 17
Slide 18: Health, safety, and the environment
Health, safety, and the environment Safety is top priority at Eka. We are a company committed to care for both the people that work for us and the environment We train our people in order to improve company performance in the areas of safety, health and environment Eka adheres to the guiding princip
Slide 19: Environmental performance
Environmental performance Keyy Performance Tons 2008 Tons 2009 Tons 2010 Indicator (KPI) COD, emission to water 215 257 280 VOC, emission to air 69 60 96 Waste, non-reusable 10,442 7,969 7,804 • COD emissions are mainly from Expancel Expancel, Stockvik plant • The largest VOC emissions are from the
Slide 20: Safety performance
Safety performance Cases per million worked hours Eka Chemicals LTI FR (Lost Time Injuries Frequency Rate) Eka Chemicals TRR (Total Reportable Injuries Frequency Rate) 15 3 15,3 14,3 11,7 10,9 96 9,6 8,2 7,2 6,3 31 3,1 , 3,7 2 2,2 26 2,6 1,3 1 1 0,8 1 2002 2003 2004 2005 2006 2007 2008 2009 2010 Dur
Slide 21: Sustainability
Sustainability Eka strives to offer sustainable products and services to our customers. Sustainability at Eka Chemicals Preferred solutions from economic and environmental perspectives during the whole life cycle of a product. Within Eka, sustainability issues are integrated into: • pp Supplier p po
Slide 22: Sustainability: Examples of sustainable solutions
Sustainability Examples of sustainable solutions for customers Eco Premium solutions Within Eka our objective is to increase the number of products and services which, in comparison with competing solutions, are more sustainable 23 % of Eka sustainable. Eka’ss sales are today Eco Premium solutions a
Slide 23: Eka Chemicals: How we perform
AkzoNobel Eka Chemicals Tomorrow's Answers Today How we perform eka
Slide 24: Eka Chemicals – key figures 2010
Eka Chemicals – key figures 2010 Sales 1044 EUR millions Investments 36 EUR millions Employees Around 2,550 • 36 production plants in 19 countries • More information at www.eka.com Eka Chemicals company presentation 24
Slide 25: Sales
Sales EUR millions 1044 991 1005 963 935 2006 2007 2008 2009 2010 Eka Chemicals company presentation 25
Slide 26: Investments
Investments EUR millions 72 46 45 35 36 2006 2007 2008 2009 2010 Eka Chemicals company presentation 26
Slide 27: Sales by product area
Sales by product area Specialty products Paper chemicals 18% 31% 51% Bleaching chemicals Eka Chemicals company presentation 27
Slide 28: Recent developments
Recent developments • Growth through new business concepts developed in close cooperation with our customers • Reduced supply chain costs due to enhanced interaction between Eka and customers • Paper p chemical rangeg expanded p with environmentally compatible solutions, e.g. Purate®, wet strength a
Slide 29: Recent developments
Recent developments Safety in focus • Behavior Based Safety (BBS) programs in operation at all Eka locations • Zero incident mindset concept introduced Eka worldwide Market position strengthened in growth regions, e.g., South America and Asia-Pacific • Large investments in Brazil • Further F th inve
Slide 30: Eka Chemicals: Research & Development
Eka Chemicals Research & Development
Slide 31: Innovation and R&D
Innovation and R&D • Development of chemistry and business concepts that respond to customer needs, strengthen customer businesses, and decrease environmental impact • R&D – 2,1 % of sales in 2010 Permanent, full-time R&D staff of around 130 people, as well as cooperation with leading universities •
Slide 32: Innovation and R&D
Innovation and R&D • Focus on new technologies and d new applications li ti off proven technologies, e.g. Purate® • Main R&D facilities in Bohus, Sweden, with additional units i S in Sundsvall, d ll SSweden, d Gunsan, Korea, Osaka, Japan and Suzhou, China Eka Chemicals company presentation 32
Slide 33: Eka Chemicals: Who we do it for
AkzoNobel Eka Chemicals Tomorrow's Answers Today Who we do it for eka
Slide 34: Serving customers worldwide
Serving customers worldwide Domtar Suzano WY Stora Enso IP Smurfit Kappa Fibria Billerud Compacel GP G-P APP SCA ... and many more Eka Chemicals company presentation 34
Slide 35: Partnership
Partnership • An innovative partner in pulp and paper production • Solving customer problems in an interactive way, through focused R&D and the application of our chemistry expertise • Increased customer efficiency through supply chain development process control and monitoring development, • Troubl
Slide 36: Eka Process Information system (EPI)
Eka Process Information system (EPI) Onsite – Focusing on customer future Remote monitoring and control of chemical production and usage at customer sites • A unique combination of pulp and paper insight and proven IT solutions • Chemical management for reduced cost and environmental impact • Improv
Slide 37: AkzoNobel Our Group
AkzoNobel Our Group Tomorrow's Answers Today AkzoNobel eka
Slide 38: AkzoNobel – our parent company
AkzoNobel – our parent company • The world’s Th ld’ llargestt paint i t and d coatings ti company and da major producer of specialty chemicals • Committed to excellence and delivering Tomorrow’s Tomorrow s Answers Today • Global Fortune 500 company • Consistently ranked as one of the leaders in the
Slide 39: Leading positions and strong brands
Leading positions and strong brands 2010 Revenue by y market p position Some of our strong g brands 27% of Decorative Paints No. 2 or 3 37% No. 1 23% of Performance Coatings position 60% Other 3% 18% of Specialty Chemicals Eka Chemicals company presentation 39
Slide 40: Specialty Chemicals key facts
Specialty Chemicals key facts 2010 • Revenue €4.9 billion • 11,080 employees • EBITDA: €939 million* • 32 percent of revenue from high-growth markets • Major producer of specialty chemicals • Leadership positions in many markets Revenue by business unit Revenue by geography 6% Functional Chemicals 3
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