Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84DECISION CHAIN supports the Pulp & Paper Industry’s ANALYSIS & PLANNING How big is the market and how is it growing? How is capacity changing? How competitive are we? Is there profitability in exporting? How do financial performances compare? Which regions have the most potential? OPERATIONS & PRODUCT DEVELOPMENT How does asset efficiency 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? What’s in the pipeline and where’s the best ROI? Is sales well prepared? Who’s a star and who’s not? INVESTMENT, M&A, & ASSET DISPOSAL What should be sold, repurposed, or closed? Which competitors should be targeted? Whose products and locations fit best? Where should capital be spent and why? Who has a long-term viability problem and who will survive? www.fisheri.com FisherSolveTM 50 Water Street So. Norwalk, Connecticut 06854 USA info@fisheri.com Room 608, Caizhi Mansion No. 448, South Guangzhou Avenue Guangzhou, China 510300 info@fisheri.com ≗⡍䏃50ো फ䇎⪺ˈܟᒋ⍙⢘ḐᎲ 㕢06854 HQ +1 203.854.5390 䋶ᱎॺ608ᅸ ᑓᎲ䘧फ448ো ᑓᎲˈЁ510300 + 86 20.3803.9296 NORTH AMERICA • LATIN AMERICA • EUROPE • ASIA To find out how FisherSolve can support your business, talk with Fisher... 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 1,000 1,200 1,400 0 Cumulative Production FST Cost, USD per FST 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 High PM Competitiveness Low 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% 6PXU¿W.DSSD 6WRUD(QVR $OO2WKHU G-P 7% .DS6WRQH Mondi 4% /HH 0DQ IP 20% APP 7% Total = 61,354,836 FMT Market Shares by Grade Segments Paper Machine Width, Inches TPD/ Trim Width More productive Less productive Our Efficiency 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 (x1,000,000) 0 2 4 6 8 10 12 14 Carbon Emission, ST CO 䰑 eq. per FST 0.000 0.500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 0.000 CO䰑 from Transportation CO䰑 from Purchased Electricity CO䰑 from Fossil Fuel Combustion CO䰑 from Raw Materials Cumulative Production FST Carbon Emission . ST CO 2 eq. per FST Carbon Footprint versus Key Competitors in Each Grade Class Headbox Hydraulic Dilution Control 1997 Voith Master Jet G Voith 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 T Dryer Drum T x Calender Stack Hard Nip Coater-On Machine Rod M C t O M hi R d x M Calender Stack Hard Nip Machine Capabilities Available for Product Development Project Forecast Short Ton 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 (x1,000,000) 0 5 10 15 20 25 30 Viability Index Ranking Value 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 5HOHDVH3DSHU C1S Label 21% Carbonless 11% Greaseproof 1% Label 0% &RDWHG%ULVWRO &RDWHG6SHFLDOWLHV Cover and 7H[W Total = 9,902,135 FMT 0DQLOD%RDUG 0DFKLQH*OD]HG Liquid Packaging 24% &RDWHG 0DFKLQH )LQLVKHG Finished Products Made on Other Machines Like Ours Paper Machine Width, Centimeters MTPD/cm Widths and Productivities of Machines Making the Target Grade Today Mass–Energy 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 1,000 1,200 1,400 1,600 1,800 Cost, USD per FST 0 50 100 150 200 250 300 350 400 450 0 -50 Cumulative Production FST Cost, USD per FST Transportation Overhead Materials Labor Energy Chemicals Raw Material Fiber Us Them Energy Energy Lower Energy Prices Alone Could Make Them Competitive