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DECISION CHAIN supports the Pulp Paper Industrys Because sooner or later youre going to want Rich Data Smart Analytics and Expert Consulting ANALYSIS PLANNING How big is the market and how is it growing How is capacity changing How competitive are we Is there protability in exporting How do nancial performances compare Which regions have the most potential OPERATIONS PRODUCT DEVELOPMENT How does asset efciency compare Where are cost improvement opportunities What else can the machine make How do environmental performances compare What new products does the market need most How competitive can we be in each new product SALES MARKETING Where are the best margins to be found How cost-competitive is each asset How attractive is the market for a new product Whats in the pipeline and wheres the best ROI Is sales well prepared Whos a star and whos not INVESTMENT MA ASSET DISPOSAL What should be sold repurposed or closed Which competitors should be targeted Whose products and locations t best Where should capital be spent and why Who has a long-term viability problem and who will survive 50 Water Street So. Norwalk CT 06854 USA 1 203 854 5390 www.sheri.comBETTER INTELLIGENCE. BETTER DECISIONS. FisherSolveTM 5 10 15 20 25 11 61 158 184 111 97 88 175 237 53 53 120 188 244 143 390 75 170 193 125 55 76 81 75 74 232 187 105 0 200 400 600 800 1000 1200 1400 0 Cumulative Production FST CostUSDperFST Overhead Materials Labor Energy Chemicals Pulps Raw Material Fiber Few Machines Are Best in all Cost Categories. Investment Will Change Competitive Positions 19 Operate for cash Invest in cost reduction Divest or close High Fiber Line Competitiveness Low HighPMCompetitivenessLow Repurpose the PM Competitiveness of Mills Fiber Lines versus Paper Machine Suggests Strategy Nine Dragons 14 Nippon 3 Oji Holdings 5 PCA 3 RockTenn 10 G-P 7 Mondi 4 IP 20 APP 7 Total 61354836 FMT Market Shares by Grade Segments Paper Machine Width Inches TPDTrimWidth More productive Less productive Our Efciency in Tons-per-Trim Width versus Key Competitors 0.131 0.485 0.673 1.187 0.398 0.843 0.859 Total Carbon Emission and Cumulative Production Cumulative Production FST per Year x1000000 0 2 4 6 8 10 12 14 CarbonEmissionSTCOeq.perFST 0.000 0.500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 0.000 CO from Transportation CO from Purchased Electricity CO from Fossil Fuel Combustion CO from Raw Materials Cumulative Production FST CarbonEmission.STCO2eq.perFST Carbon Footprint versus Key Competitors in Each Grade Class Headbox Hydraulic Dilution Control 1997 Voith Master Jet GVoith Type SubType Model Year Built Original Supplier Current Supplier Former Press Assembly Press Assembly Press Assembly Dryer Dryer Dryer Size Press Dryer Calender Stack Coater-On Machine Twin Wire_Gap Roll Press Roll Press Shoe Press Drum Drum Drum Film_press Drum Hard Nip Rod Roll Blade Double Nip Double Nip Straight Through Two Tier Two Tier Two Tier Metering_rod Two Tier xxxx Metering 2001 1997 1997 2001 1997 1997 1997 1997 1997 1997 1997 Voith Voith Voith Voith Voith Voith Voith Voith Voith Voith Voith Voith Voith Voith Voith Voith Voith Voith Voith Voith Voith Voith DuoFormer TQv DuoCentri I DuoCentri I NipcoFlex CombiDuoRun CombiDuoRun CombiDuoRun SpeedSizer CombiDuoRun xxxx Speed Coater Headbox Hydraulic D Former Press Assembly Twin Wire_Gap Roll Press R D y Press Assembly Dryer Shoe Press Drum S T y Size Press D Film_press D M TDryer Drum T xCalender Stack Hard Nip Coater-On Machine Rod MC t O M hi R d x M Calender Stack Hard Nip Machine Capabilities Available for Product Development Project Forecast ShortTon Asian White Top Linerboard Capacity Growth Historical and Forecast 1 1 2 2 3 3 4 4 4 4 4 5 6 6 7 8 8 8 Total Average Ranking and Cumulative Production Cumulative Production FST per Year x1000000 0 5 10 15 20 25 30 ViabilityIndexRankingValue 0.0 2.5 5.0 7.5 10.0 0.0 FST Per Year Viability Benchmarking Assets at Greatest Risk Analysis of Logistics Product Portfolios and Costs Suggests Three Candidates C1S Label 21 Carbonless 11 Greaseproof 1 Label 0 Cover and Total 9902135 FMT Liquid Packaging 24 Finished Products Made on Other Machines Like Ours Paper Machine Width Centimeters MTPDcm Widths and Productivities of Machines Making the Target Grade Today MassEnergy Balance Model Flow Sheet Key Financial Ratios versus Competitors with Bankruptcy Probabilities Target Higher Cost Competitors in Selected Areas 49 54 38 74 148 56 53 43 99 149 0 200 400 600 800 1000 1200 1400 1600 1800 CostUSDperFST 0 50 100 150 200 250 300 350 400 450 0 -50 Cumulative Production FST CostUSDperFST Transportation Overhead Materials Labor Energy Chemicals Raw Material Fiber Us Them Energy Energy Lower Energy Prices Alone Could Make Them Competitive