Rhodia Acetow

London - November 20, 2009
Rhodia Acetow
Gerard Collette – President
A benchmark
for quality and
innovation
Agenda
• Rhodia Acetow at a glance
• Market dynamics and drivers
• Our strategy
2
y Rhodia y 2009 Capital Market Day
Rhodia Acetow at a glance
A benchmark
for quality,
sustainability
and innovation
Rhodia Acetow overview
Net sales
€467 million
2008 figures
Employees
1,230
Recurring EBITDA
€84 million
Market Share
17% worldwide
6 Industrial sites
worldwide
N°1 in Western Europe
N°1 in CIS
N°1 in Latin America
Production process
Cellulose
Acetate
Flakes
Acetylation
Washing
Drying
Filter tow
Spinning
Drying
Environmentally responsible
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y Rhodia y 2009 Capital Market Day
Competitive global manufacturing footprint,
serving our markets
N°1
in Western Europe
with 39% m.s.
N°1
in Russia
with 49% m.s.
SERPUKHOV
FREIBURG
Central
Europe 32%
ROUSSILLON
KINGSPORT
Middle East
24%
Asia / Pacific
8%
JAPAN
Africa
12%
VALENCIA
N°1
in Latin America
with 68% m.s.
Manufacturing plants
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y Rhodia y 2009 Capital Market Day
SAO PAULO
Tolling Agreement
• Presence in 4 continents
• Unique producer in Russia
• Full capacity utilisation
Sharp profitability improvement
In €m
37
35
33
31
29
27
25
23
21
19
17
15
160
140
34
120
100
64%
27
80
60
40
21
20
21
0
2006
EBITDA
2007
Turnover
2008
2009*
Quaterly EBITDA average
Thanks to successful deployment of “Ambition 2010” enhanced
competitiveness plan (€40m savings vs. ’07) and good pricing power
* At September 30, 2009
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y Rhodia y 2009 Capital Market Day
Long lasting environmental commitment
Water consumption*
1200
100000
Water Consumption
90000
80000
70000
800
60000
600
50000
40000
400
30000
Prduction Volume (t)
Water consumption (m³/t)
1000
20000
200
• Consumption and recycling balanced
• Unit consumption reduced by > 90%
since 1950
10000
0
0
1955
1965
1975
Water source
1985
Well water
1995
2005
Annual Filter Tow production (t)
VOC Emissions*
200
100000
180
90000
160
80000
140
70000
120
60000
100
50000
80
40000
60
30000
40
20000
20
10000
0
Reduction of CO2 Emissions
• 20% CO2 reduction by cogeneration since 1998
• Process innovation: additional reduction by 20%
• 40% of Freiburg's electricity requirements generated
by Rhodia
VOC (Volatile Organic Component)
0
1956
1960
1964
1968
1972
1976
Acetone losses (kg/t)
1980
1984
1988
1992
1996
2000
2004
Annual Filter Tow production (t)
2008
• Emissions reduced by 95% in 30 years, recycling
of over 99.5% of used Acetone
Best-in-class environmental processes
* Freiburg site
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y Rhodia y 2009 Capital Market Day
Market dynamics and drivers
Cigarette consumption growth driven by emerging markets
2008 figures*
China + 1.7%
• Every third cigarette
is smoked in China
Western Europe
(0.4)%
North America (0.4)%
6.1 trillion
cigarettes
Asia / Pacific
+ 1.0%
c.1%
CAGR 08/15
Central Europe (1.1)%
Middle East + 1.3%
Africa + 1.9%
CIS 0.0%
Latin America + 0.8%
• China & Asia Pacific
lead the growth followed
by Africa, Middle East
and Latin America
• Rhodia sales into China
posted a 23% growth
over the 2005/2008
period
Rhodia pursuing larger presence in most growing markets
* Rhodia estimates
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y Rhodia y 2009 Capital Market Day
Filter tow market drivers
• Filter Tow market grows through:
• Growth of worldwide
-
population implies growth
of smoking population
Filter Tip share increase
Substitution of Polypropylene by Acetate
Filter weights increase due to special filters
Acetate Tow
Filter Tow
In Kt*
(3)
Reduction
of total
denier
Waste
level
32
25
56
767
-8
Cigarette
market
growth ca.
1% p.a.
Filter tip
share
increase
from 97%
to 99.5%
Growth
of
special
filters
869
CAGR = c.1.8%
2008
Cigarette Market
* Rhodia estimates
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y Rhodia y 2009 Capital Market Day
2015
Tip Share
Tip Weight
Total Denier
Waste Level
Well balanced market structure
2008 estimates*
Market share
by key cigarette manufacturers
Market share
by key filter tow manufacturers
Celanese
& JV CNTC
China National
Tobacco Corp
Independents
& Monopolies
42%
25%
34%
Altria
Mitsubishi
Daicel &
JV CNTC
3%
5%
4%
11%
Imperial
7%
Japan Tobacco
12%
British American
Tobacco
17%
14%
Philip Morris
International
Top 5 = 72% m.s
26%
Rhodia
Top 3 = 85% m.s
Rhodia serving top 5 cigarette manufacturers and major
Independents & Monopolies across 4 continents
* Rhodia estimates
11
y Rhodia y 2009 Capital Market Day
Eastman
Our strategy
“Innovative
Filter Solutions®
Provider”
Our response to industry’s key success factors
and challenges
Continuous improvement is our way…
Competitiveness • Continuous OEE* improvement (capacity increase)
•
Cost control
Best in class • Reliable
for Quality • Respectful of customer specifications
•
Superior quality of service
…Innovation is our Future
Product and • Increase filtration efficiency
process • Accelerate degradability of filter tow
innovation • New shapes and colours (ex “Ultra Slim”) associated
with innovative solutions to compensate acetate cable
specific weight decrease
Customer Support • CABLE 5: well acknowledged software tool
for cigarette filter development
* Overall Equipment Efficiency
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y Rhodia y 2009 Capital Market Day
…Showing growth and sustainable development
compatibility
Strengthened
presence in
emerging market
•
Progressive penetration into large Asian Pacific market
through reinforced tolling agreements and worldwide
manufacturing footprint sourcing
Sustainable • Implementation of
in our business
development • Reduced waste generation, Volatile Organic Components
(VOC) emissions and energy consumption
Rhodia Acetow: A benchmark for quality,
sustainability and innovation
14
y Rhodia y 2009 Capital Market Day
Rhodia Acetow
A benchmark
for quality,
sustainability
and innovation