Welkom NEK 23 september 2003

Kappa Packaging Kappa Turnhout Is België anders? Kenmerken van veranderingen

Kappa Packaging Hier begint het gedeelte over Kappa Packaging algemeen. Bevat een aantal kerncijfers en focust vooral op de Europese dimensie van de groep.

Profile Kappa Packaging Integrated producer with paper and board and packaging operations Paper and board operations 15 mills producing kraftliner, testliner, fluting and solid board Packaging operations 93 plants providing pan European packaging supply to customers with both corrugated and solid board packaging solutions Belangrijk hierbij is dat wij (vertikaal) geïntegreerd zijn. Ook onderscheid: - paper and board - packaging

Extensive pan European presence Canary Islands 5x Corrugated packaging Solid board packaging Kraftliner Testliner/Recycled fluting Semi-chemical fluting Solid board Zeer sterke geografische spreiding over Europa. Weliswaar een grote concentratie in de Benelux.

Scope for further consolidation Packaging Paper and Board Kappa Packaging Jefferson Smurfit SCA Mondi Europe Saica DS Smith OTOR International Paper Er zijn 3 groepen die qua grootte er echt wel bovenuit steken (3 grote Europese spelers dus). De rest is merkelijk kleiner. ktonnes Source: Kappa Packaging Estimates

Sales and EBITDA performance Kappa Packaging Cijfers zijn steeds in stijgende lijn gegaan, behalve de lichte terugval in 2003 (te wijten aan de economische recessie). Nochtans is de Ebitda margin (in %) stabiel gebleven, wat een mooie prestatie is.

Stable and growing markets (x mln m2) Since 1990, corrugated packaging volumes have grown by 3.7% on average per annum Germany France Italy Great Britain Spain Others W-Europe Others E-Europe (excl. Russia) 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 De laatste jaren is de groei echter wel kleiner dan daarvoor (te wijten aan de slabakkende economie uiteraard). Source: Fefco 2002

Integrated packaging & paper and board company Recovered Paper 3,000 ktonnes Solid Board Packaging Board Graphic & Specialty Board 1,050 ktonnes Containerboard 2,300 ktonnes Solid Board Packaging 425 ktonnes Corrugated Packaging 4,000 mln m2 Wood/ Wood Chips 2,35 million m3 2,200 ktonnes All units exposed to external markets All internal transactions at arms length All operational units and segments profit centres Recovered paper operations integrated into the paper and board segment Long-term contracts for supply of wood/ wood chips

Lowest cost of ownership User chain Supply Production chain Packaging Distribution Unpacking Disposal Collection Paper Manufacturing Wij beheren de ganse keten en kunnen daarom de lowest cost of ownership realiseren ("de cirkel is rond").

Two segments with different drivers Paper and Board Packaging Commodity products Raw material costs Capital intensive Asset utilisation Unique packaging solutions Lowest cost in the chain Hassle-free service Beide takken hebben hun eigen karakteristieken. Lowest cost producer wins Customer-focused wins

Paper and Board Eerste tak: paper and board. Foto rechtsboven is Roermond.

Packaging Tweede tak: packaging.

Welkom bij Kappa Turnhout n.v.

Production & Logistiek & Purchase Onze organisatie Algemene directie Jan Gramsma General Manager Greet Van Doninck Management Assistant Erik De Kort Sales & Marketing Dirk Van Akelyen Production & Logistiek & Purchase Peter Nackaerts Finance & HRM & ICT Diane Houtmeyers SHEQ-manager

Onze markt

eindsegmentatie

modellengamma

Onze fabriek

Onze diensten Als u dat wilt kunnen wij u helpen uw verpakkings-proces door te lichten en wellicht te verbeteren: - Process audits, monitoring van inpak, savings, specifieke oplossingen - Benchmark met andere klanten (na wederzijdse toestemming) - Huur, lease of koop Kappa verpakkingslijnen - Probleemoplossing, optimalisering van verpakkingsproces - Logistieke analyses, pallet optimalisatie - Performance packaging - Business transfer, coördinatie en follow-up van opstartorders

Lowest cost of ownership User chain Supply Production chain Packaging Distribution Unpacking Disposal Collection Paper Manufacturing Wij beheren de ganse keten en kunnen daarom de lowest cost of ownership realiseren ("de cirkel is rond").

Functionality Plot: Focus on the right solution area Direct Costs material & packing Consumer appeal & shelf performance Logistic costs & performance In-store Cost & performance

Plotting packaging functionality / demand Kappa decision making support Plotting packaging functionality / demand Consumer appeal & shelf performance Direct Costs material & packing logistic cost & performance In-store costs & performance

Supply Costing: Supply co-operation impacts costs Kappa Machine Packing specs Internal transport Warehouse/ Inventory Transport Customer Internal transport Customer Warehouse/ Inventory Cost Drivers, influenced by Customer/Kappa Packaging co-operation Order frequency / Production batch sizes Minimum/Maximum stock agreements Packing specs Product variety (level of standardisation) Production complexity (routing, tools)

Data input: Kappa Packaging and The Customer...

customization of the chain, adding modules….

Specific customer data input….

Activity based costing of improvement scenarios....

Cape Pack pallet optimisation

Cape Pack output

Horizontale samenwerking leverancier klant Verkoop Distributie Customer service Senior management Inkoop Opslag Productie Keten beheer Financiën IT Senior management Customer support This is what our aim should be. And it is the EAM's job to make sure this happens. IT Financiën Onderzoek & ontwikkeling Onderzoek & ontwikkeling

Reducing the total cost of ownership The retail example Shelf handling : 32 sec Shelf handling : 8 sec Reduce time, money & staff: 32  8 = 75% Based on existing packaging machinery Fast to implement

Waarom willen wij dit voor u kunnen doen?

Levels of economic development TODAY 2010 Level 1 economic take-off Level 4 economic re-invention USA India China Indonesia Philippines Japan Brazil Russia West Europe Singapore USA India China Malaysia Argentina Centr. Europe Chili Japan West Europe Singapore Indonesia Philippines Middle East Middle East Level 2 economic development Level 3 economic consolidation Malaysia Argentina Centr. Europe Chili Russia Brazil

Packaging industry Today - 2010 Level 1 economic take-off Level 4 economic re-invention flexibility sophisticated distribution customization innovation specialization value Capacity launch availability commodity price Capacity consolidation/decrease variety value for money convenience segmentation innovation niche development price service mass production value for money Capacity increase Capacity diversification Level 2 economic development Level 3 economic consolidation

Packaging industry Today - 2010 Level 1 economic take-off Level 4 economic re-invention flexibility sophisticated distribution customization innovation specialization value Capacity consolidation/decrease India China Indonesia Philippines Russia Brazil Malaysia Argentina Centr. Europe Chili Middle East West Europe Singapore Japan USA Capacity launch availability commodity price variety value for money convenience segmentation innovation niche development price service mass production value for money Capacity diversification Capacity increase Level 2 economic development Level 3 economic consolidation

Snel & Eenvoudig, de noodzaak Golfkarton is voor zijn gebruikers lang een veelal oninteressante commodity geweest Low tech, low interest = stabiele marges = gevaar voor commerciële luiheid, gebrek aan innovatie in productie en routinematig managen Dat langdurige verblijf in de “comfort zone” is voorbij en zal niet meer terugkeren De Europese industrie heeft sinds de jaren ’50 een tweede Industriële Revolutie doorgemaakt: Verkoop (reclame / marketing / mass individualisation) Productie (lean production, zero defect) ICT (PC / ERP / Internet) Logistiek (JIT / pull logistiek) Inkoop (Lopez / e-auctions) Personeel (empowerment / career management) Financieel (shareholdervalue / consolidation)

Snel & Eenvoudig, de noodzaak De Europese markt is daardoor gewend geraakt aan continue kwaliteit in product en service, is ketengericht gaan denken en wil steeds sneller zakendoen, zonder gezeur en ballast. Hierdoor, en versterkt door de opkomst van achtereenvolgens Oost-Europa, China, India & Viëtnam, worden we nu gedwongen te concurreren tegen kwalitatief goede aanbieders met lage prijzen. De enige wapens daartegen zijn een grotere individuele creativiteit, een grotere collectieve effectiviteit en rigoureuze kostenbeheersing. We moeten daarom zoeken naar doorbraken op commercieel-, product-, productie- en logistiek gebied die deze wensen beter dan vandaag beantwoorden. (gestructureerde verkoop;ABC-calculatie; Kappa verpakkingen databank; DY inlinerconcept; Machine Systems Benelux) Snelheid, geen gezeur en “beste koop” zijn veruit de belangrijkste krachten in onze markt en vormen daarom onze koers voor een goede toekomst.

De basisgedachte achter ons bedrijf Kappa Turnhout is de grootste golfkartonfabriek van de Benelux, die als all round producent er naar streeft: Zo efficiënt mogelijk goede dozen te produceren Dat te doen in een hygiënische en veilige werkomgeving Te voldoen aan uw uitgesproken en liefst ook onuitgesproken verwachtingen Vrijwel alles in eigen beheer te doen om zo onze grootte te gebruiken om voor u flexibel te zijn Als u dat wilt, u kan ondersteunen met Kappa verpakkingsmachines, doos- en doosgebruiksanalyses en logistieke ondersteuning & advies Bovenal mensen centraal plaatst en vanuit die denkwijze bijvoorbeeld diegenen waar u zaken mee doet alle informatie en beslissingsbevoegdheden geeft, zodat u makkelijk en efficiënt zaken kunt doen Er, alles samenvattend,naar streeft het inkopen van karton voor u als klant net even eenvoudiger en sneller te maken dan u van onze branche gewend bent

Wat kunnen wij meer voor u doen om u tot een tevreden klant te maken en te houden?

Is België anders dan andere landen?

Human Mind Programmed by Heredity and Experience in 3 Levels Inherited learned Individual Collective by group Learned Culture Inherited Common to all mankind “Group”: E.G. nation, profession, organization, family

Culture Symbols Heroes Rituals Values

Values The culture of a group is manifested, among other things, on the distribution of values within the group Broad preferences for one state of affairs over others to which strong emotions are attached

The 4-D Model Value differences between countries can be explained by four “dimensions of national culture” Power Distance (PDI) Individualism (IDV) Masculinity (MAS) Uncertainty Avoidance (UAI)

Power Distance The extent to which the less powerful members of institutions and organisations accept that power is distributed unequally

Which Country Culture Scores Highest on Power Distance? BELGIUM JAPAN USA GERMANY FRANCE

Which Country Culture Scores Highest on Power Distance? BELGIUM JAPAN USA GERMANY FRANCE 65 54 40 35 68

Which Country Culture Scores Lowest on Power Distance? SWEDEN DENMARK NETHERLANDS UK NORWAY

Which Country Culture Scores Lowest on Power Distance? SWEDEN DENMARK NETHERLANDS UK NORWAY 31 18 38 35 31

Uncertainty Avoidance The extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these

Which Country Culture Scores Lowest on Uncertainty Avoidance? UK DENMARK NORWAY NETHERLANDS USA

Which Country Culture Scores Lowest on Uncertainty Avoidance? UK DENMARK NORWAY NETHERLANDS USA 35 23 50 53 46

Which Country Culture Scores Highest on Uncertainty Avoidance? GERMANY BELGIUM FRANCE SPAIN SWEDEN

Which Country Culture Scores Highest on Uncertainty Avoidance? GERMANY BELGIUM FRANCE SPAIN SWEDEN 65 94 86 86 29

De kenmerken van veranderingsprocessen

The contentment room The renewal room The denial room THE CHANGE HOUSE With Additional Rooms The contentment room The renewal room We are the best Let’s postpone it Why should we do it arrogance Let’s do it together Let’s make it happen! High motivation and energy Taking responsibility The Sun lounge The denial room The confusion room They are responsible Circumstances are responsible Fingerpointing Defensive behaviour Which way is the best? Hire and fire! A new strategy every day Lots of uncoordinated initiatives Consultants Wrong direction door Dungeon of denial Paralysis pit

Signs of contentment What they say How they act The Sun lounge Wrong Let’s postpone it We know what we’re doing We achieve our targets It it isn’t broke, don’t fix it It will get better next month Management have decided We don’t have any major problems Ignore the outside world Arrogant Justify bad results Don’t listen to customers Don’t listen to own staff No sense of urgency Unaware of new threats Want more money The Sun lounge Wrong direction door Dungeon of denial Paralysis pit

Signs of denial What they say How they act The Sun lounge Wrong It’s a general industry trend What problem? It’s not our fault The budget was too ambitious It’s a short time issue It’s the recession Corporate doesn’t understand It will be ok next month It can’t happen here We’ve always done it this way Our business is different If it isn’t broken, don’t fix it Defend the past Defend the present Agressive Miss the message, but kill the messenger Blame everything else Blame everybode else Minimise or trivialise the change Not listening to own staff Not listening to customers Try to find competitors who’re doing worse The Sun lounge Wrong direction door Dungeon of denial Paralysis pit

Signs of confusion What they say How they act The Sun lounge Wrong What are we doing? What should we do? How did we get into this mess? Let’s hire some consultants What are our competitors doing? What have I done wrong? We must do something now I’ve been saying that for years We’re trying to do too many things at once Frustration Anger Insecurity, self-doubt No sense of direction Dependency on others (internal, external) Slogan of the month Set up numerous committees, task forces Hire people from outside Never complete anything The Sun lounge Wrong direction door Dungeon of denial Paralysis pit

Signs of renewal What they say How they act The Sun lounge Wrong Let’s make it happen Let’s do it together This is a good place to work Let’s tell everybode about this This is our plan It’s been tough, but we’ve made it We’re doing well, but we could do better We have to trust each other We won’t do it if it doesn’t fit our strategy Learning Trust, delegation Independence Accepting risk Flexibility, creativity Trying new approaches Enjoying themselves Continually improve Stay focussed Set new targets Don’t believe all their own publicity Regularly review progress and process The Sun lounge Wrong direction door Dungeon of denial Paralysis pit

Vriendelijk bedankt voor uw aandacht