Superior Plus Corp · TSX:SPB
Superior Plus — Investor Day (September 2012)
43 slides from Superior Plus's investor day presentation, Sep 12, 2012
Slide 1: Investor and Analyst Update
Investor and Analyst Update Port Edwards, Wisconsin Plant September 12th, 2012
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain information included in this presentation is forward-looking, within the meaning of applicable Canadian securities laws. Forward- looking information includes, without limitation, statements regarding business strategy, market conditions, projected costs, capital e
Slide 3: ERCO Worldwide Management Committee
ERCO Worldwide Management Committee Paul Timmons President Sheila Burke Ed Bechberger John Engelen John Christie Vice‐President Steve Webb Patrick Lefebvre Sr. Vice‐President Vice‐President, Vice President, Regulatory Affairs Vice‐President, Vice‐President, Sales and Business Supply Chair & External
Slide 4: Business Overview
Business Overview • Manufacturer and supplier of specialty chemicals and provider of technology related services • Largest producer of sodium chlorite in North America and Worldwide • Second-largest producer of sodium chlorate in North America and Worldwide • Third largest producer of potassium chlo
Slide 5: Summary
Summary • Stable cash flows • Strong pipeline of opportunities • Demonstrated an ability to effectively execute a variety of projects • Product and geographic expansion projects are being developed • Financial outlook ... similar to 2011
Slide 6: Business Overview: Geographic Footprint
Business Overview Geographic Footprint CANADA • 510,000 MT sodium chlorate Grande Prairie capacity from 7 plants Saskatoon Vancouver Hargrave Thunder Bay Buckingham Toronto • 10,500 MT sodium chlorite Port Edwards capacity from 2 plants – largest USA Valdosta worldwide • 39,000 MT chloralkali produc
Slide 7: Business Overview: Product Diversification
Business Overview Product Diversification Superior has diversified its Specialty Chemical Business 2011 EBITDA
Slide 8: 2012 Market Update: Sodium Chlorite
Business Overview 2012 Brief Market Update Sodium Chlorite • Sodium chlorite is an emerging chemical with process applications in food, water treatment, oil and gas, and disinfection • Sodium chlorite is made from sodium chlorate • There are only two producers in North America, ERCO is the largest •
Slide 9: 2012 Market Update: Chlorate
Business Overview 2012 Brief Market Update Chlorate • Pulp mills running at good utilization rates – stable market • Chlorate pricing stable – not many contracts open • 100,000 tonnes (approx.) of demand has returned to North American market since 2008 • ERCO's portfolio is sold out for 2012, and wi
Slide 10: Bleached Chemical Pulp Growth
Bleached Chemical Pulp Growth Pulp Capacity
Slide 11: Bleaching Technology Leader
“Bleaching Technology Leader" • ERCO uses its own proprietary technology in its chlorate and chlorite production processes • ERCO is one of only two companies world-wide that supply sodium chlorate and equipment that uses the chlorate to bleach pulp • ERCO has developed technology to remotely monito
Slide 12: 2012 Market Update: Chloralkali
Business Overview 2012 Brief Market Update Chloralkali • YTD operating rates mid-80’s • Demand remains strong - Fertilizer - strong - Oil field – growing - Food - stable - Export markets – strong - Low natural gas prices • Europe and China not in position to compete
Slide 13: Chloralkali Industry Gross Margin History
Chloralkali Industry Gross Margin History Source: IHS Chemical
Slide 14: ERCO Chloralkali Industry Segment Sales - 2011
ERCO Chloralkali Industry Segment Sales - 2011 TiO2 Vinyls Ag 3.6% 2.9% 5.9% Ag Intermediates Pulp & paper 3.4% 11.5% Bleach Pool Chemicals 16.3% 0.8% Others 6.9% De-icing 3.6% Distribution 4.4% Oil & gas Fertilizer 20.3% 4.9% Food 15.5% %’s based on sales volumes in dry tonnes
Slide 15: Chloralkali
Chloralkali Port Edwards and Saskatoon • Supply basic feedstock for most fundamental chemicals • Significant geographic advantage - Food - Fertilizer - Water Treatment - Oil & Gas
Slide 16: ERCO Chloralkali Future Business Model
ERCO Chloralkali Future Business Model • ERCO is primarily an “alkali” player • Minimize dependence on merchant chlorine - Announced Port Edwards 2nd burner will consume up to 75% of our chlorine at Port Edwards - A 3rd burner in Saskatoon under review would consume up 100% of our chlorine at Saskat
Slide 17: ERCO HCl Geographic Advantage
ERCO HCl Geographic Advantage Confidential
Slide 18: ERCO Advantages
ERCO Advantages • High barriers to entry • Internal technical strength and in-house technologies • Proprietary technology • International experience – active in many countries - Diverse production locations - Export capability from East and West coasts • Focused sales and service teams • Stable long
Slide 19: Specialty Chemicals Opportunities
Specialty Chemicals Opportunities • Continue to optimize existing chemical facilities • Chlorate industry consolidation • Exploring international expansion opportunities - Leverage chlorine dioxide technology - Leverage strategic partnerships … e.g. South America • Port Edwards KOH/HCl expansion opp
Slide 20: Our Future
Our Future • Chemistry is providing population demanded solutions: - Efficient energy production - Clean water - Increased crop yield - High quality paper products • ERCO products are fundamental in all these areas • Opportunities exist to grow through Increased population and standard of living nee
Slide 21: Financial Summary
Financial Summary • Revenue CAGR = 10% • EBITDA Margin averaged 21% Note 2011/2010 on IFRS basis; 2009 on Canadian GAAP basis
Slide 22: Port Edwards Plant location
Port Edwards Plant is located in South Wood County in central Wisconsin.
Slide 23: Organization chart
Organization chart Plant Manager Geoff Bertin Production Mgr Technical Mgr Mark Schneider Dawn Jensen Maintenance Mgr Commercial Mgr Brian Caldwell Rona Rossier Abel Safety, Security Mgr Environmental Eng James Bergeron Dan Cummins HR Advisor Rebecca Ksionek
Slide 24: Responsible Care
Responsible Care • ERCO Worldwide is an active member of ACC (American Chemistry Council) and the Chlorine Institute • The Port Edwards facility operates under the principles of Responsible Care®. • The site will be verified through a third party of ACC in Q2 2013
Slide 25: Safety
Safety Safety is a core value at ERCO Worldwide Our safety policy is based on the belief that all accidents and incidents are preventable “Because I work at ERCO I know Iwill be injury free”!
Slide 26: Process Safety Management
Process Safety Management • Process Safety Management of Highly Hazardous Chemicals – OSHA CFR 1910-119 • 14 Elements covered under Process Safety Management • Employee/Contractor Participation and Training • Hazard Identification, Analysis • Safe Work Processes • Emergency Planning and Incident Inv
Slide 27: Safety Performance
Safety Performance July 31, 2012 2+ Years without a recordable injury
Slide 28: Environment
Environment • ERCO Worldwide, as a manufacturer and supplier of chemicals, technology and services, recognizes that it is responsible for achieving sustained growth of its business together with an ethical responsibility for the environment. • The plant constantly works under updated environmental s
Slide 29: Environment Performance
Environment Performance 2.5 years Without reportable environmental incidents
Slide 30: Environment
Environment: - 2012 Zero hazardous waste virtually eliminated going forward - No historical Environmental legacy issues
Slide 31: Chloralkali Products
Chloralkali Products Plant Capacity: 103,000 MT /year Liquid Chlorine 72,530 tons Hydrochloric Acid 42,600 dry short - 85,200 upon project completion Sodium Hydroxide 76,800 dry short Potassium Hydroxide 90,000 dry short
Slide 32: Chloralkali – Customer Satisfaction
Chloralkali – Customer Satisfaction • 2011 Corporate POI Target: 99.65% - Port Edwards: 99.67%
Slide 33: Our Employees
Our Employees • Our highly skilled people ensure high operating standards in all areas • Safety, environment & process safety systems are managed by specialized experts in the field. Area Employees Commercial and Management 19 Engineering and Technical 10 Production 39 Maintenance 17 Plant Services
Slide 34: ERCO Technology
ERCO Technology - Construction, operation and maintenance - Highly automated plant - Safety Interlock System will shut it down if operation moves outside set parameters
Slide 35: Chloralkali Electricity Efficiency
Chloralkali Electricity Efficiency 3200 3000 25% Membrane Project Efficiency Improvement Kilowatts per production unit 2800 2600 2400 2200 2000 2007 2008 2009 2010 2011
Slide 36: Technology: Benchmarking of NaOH Plant
Technology Benchmarking of NaOH Plant Comparison of standardized Voltage for generation 5 plants with N2030WX 3,40 N2030WX, 6kA/m?, 90°C, 32%NaOH 7) 8 —— 7) 8 3,10 Standardised Voltage [V] 7) 8 2,90 0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 Days on Line
Slide 37: Chlor-alkali ECU Production
Chlor-alkali ECU Production ECU RAW MATERIALS PRODUCTS OUTPUTS Caustic Soda Caustic Soda (Sodium Hydroxide) Brine NaOH – 1.12 Tons Salt Treatment or KOH (Potassium E KOH – 1.59 Tons Hydroxide) L E C KCl 1.65 Tons NaCl Chlorine Chemical Ion or T Chlorine or NaCl Treatment Exchange 2.10 Tons KCl R 1.0
Slide 38: Property Expansion
Property Expansion J ' _ - Binage US DA"RarmiSeniceAger f wr “ ERCO Worldwide A division of Superior Plus LP
Slide 39: Site Recognition
Site Recognition WEWG Business Friend of the Environment Cl2 Institute - Transcaer Individual Achievement Award
Slide 40: Site Recognition
Site Recognition • Cl2 Institute 2011 Process Safety Award for: Total Calendar Years Achieved with “Zero Reportable Quantities” and “Zero Risk Management Plan incidents (2006-2011)” • NS Rail Thoroughbred Award • CSXT Rail Chemical Safety Excellence Award • UP Rail Chemical Transportation Safety Pin
Slide 41: Questions & Answers
Questions & Answers tA LY Pi ERCO Worldwide A division of Superior Plus LP
Slide 42: Thank you
Thank you…… Now you will receive visitor orientation before touring the facility.
Slide 43: Plant Tour Route
Plant Tour Route 5 1. 2. Office + Training Room Control Room 3. Brine Area + IX 4. Central Tank Farm 1 5. 6. Cell Room HCl Project area 2 7. Boiler, Evaporator , Cooling Tower 6 7 4 3