Welkom

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Welkom NEK 23 september 2003
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• Kappa Packaging
• Kappa Turnhout
• Is België anders?
• Kenmerken van veranderingen

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Kappa Packaging
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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

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Extensive pan European presence
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Scope for further consolidation
Paper and Board
Packaging
Kappa Packaging Jefferson Smurfit SCA
Mondi Europe Saica DS Smith OTOR International
Paper
ktonnes
Source Kappa Packaging Estimates
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Sales and EBITDA performance Kappa Packaging
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Stable and growing markets (x mln m2)
Since 1990, corrugated packaging volumes have
grown by 3.7 on average per annum
Source Fefco 2002
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Integrated packaging paper and board company

• All units exposed to external markets
• All internal transactions at arms length
• All operational units and segments profit centres
• Recovered paper operations integratedinto the
  paper and board segment
• Long-term contracts for supply of wood/ wood chips

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Lowest cost of ownership
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Two segments with different drivers
Paper and Board
Packaging

• Unique packaging solutions
• Lowest cost in the chain
• Hassle-free service

• Commodity products
• Raw material costs
• Capital intensive
• Asset utilisation

Lowest cost producer wins
Customer-focused wins
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Paper and Board
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Packaging
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Welkom bij Kappa Turnhout n.v.
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Onze organisatie

• Algemene directie

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Onze markt
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eindsegmentatie
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modellengamma
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Onze fabriek
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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

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Lowest cost of ownership
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Functionality Plot Focus on the right solution
area
Direct Costs material packing
Consumer appeal shelf performance
Logistic costs performance
In-store Cost performance
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Plotting packaging functionality / demand
Kappa decision making support
Consumer appeal shelf performance
Direct Costs material packing
logistic cost performance
In-store costs performance
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Supply Costing Supply co-operation impacts costs
Customer Warehouse/ Inventory
Customer Internal transport
Warehouse/ Inventory
Transport
Internal transport
Kappa Machine
Packing specs

• 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)

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Data input Kappa Packaging and The Customer...
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customization of the chain, adding modules.
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Specific customer data input.
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Activity based costing of improvement
scenarios....
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Cape Pack pallet optimisation
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Cape Pack output
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Horizontale samenwerking
klant
leverancier
Customer support
Financiën
IT
Onderzoek ontwikkeling
Onderzoek ontwikkeling
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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

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Waarom willen wij dit voor u kunnen doen?
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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
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Packaging industry Today - 2010
Level 1 economic take-off
Level 4 economic re-invention

• flexibility
• sophisticated distribution
• customization
• innovation
• specialization
• value

• availability
• commodity
• price

Capacity launch
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
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Packaging industry Today - 2010
Level 1 economic take-off
Level 4 economic re-invention

• flexibility
• sophisticated distribution
• customization
• innovation
• specialization
• value

Capacity consolidation/decrease

• availability
• commodity
• price

Capacity launch

• 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
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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)

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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 verkoopABC-calcula
  tie 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.

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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

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Wat kunnen wij meer voor u doen om u tot een
tevreden klant te maken en te houden?
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Is België anders dan andere landen?
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Human Mind Programmed by Heredity and Experience
in 3 Levels
Inherited learned
Individual
Learned
Collective by group
Culture
Inherited
Common to all mankind
Group E.G. nation, profession, organization,
family
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Culture
Symbols
Heroes
Rituals
Values
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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

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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)

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Power Distance

• The extent to which the lesspowerful members of
  institutions and organisations accept that power
  is distributed unequally

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Which Country Culture Scores Highest on Power
Distance?
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Which Country Culture Scores Highest on Power
Distance?
BELGIUM JAPAN USA GERMANY FRANCE
65 54 40 35 68
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Which Country Culture Scores Lowest on Power
Distance?
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Which Country Culture Scores Lowest on Power
Distance?
SWEDEN DENMARK NETHERLANDS UK NORWAY
31 18 38 35 31
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Uncertainty Avoidance

• The extent to which people feel threatened by
  ambiguous situations and have created beliefs and
  institutions thattry to avoid these

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Which Country Culture Scores Lowest on
Uncertainty Avoidance?
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Which Country Culture Scores Lowest on
Uncertainty Avoidance?
UK DENMARK NORWAY NETHERLANDS USA
35 23 50 53 46
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Which Country Culture Scores Highest on
Uncertainty Avoidance?
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Which Country Culture Scores Highest on
Uncertainty Avoidance?
GERMANY BELGIUM FRANCE SPAIN SWEDEN
65 94 86 86 29
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De kenmerken van veranderingsprocessen
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THE CHANGE HOUSE
With Additional Rooms
The contentment room
The renewal room
We are the best Lets postpone it Why should we
do it arrogance
Lets do it together Lets make it happen! High
motivation and energy Taking responsibility
The Sun lounge
The denial room
The confusion room
Which way is the best? Hire and fire! A new
strategy every day Lots of uncoordinated
initiatives Consultants
They are responsible Circumstances are
responsible Fingerpointing Defensive behaviour
Wrong direction door
Dungeon of denial
Paralysis pit
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Signs of contentment
How they act
What they say

• Lets postpone it
• We know what were doing
• We achieve our targets
• It it isnt broke, dont fix it
• It will get better next month
• Management have decided
• We dont have any major problems

• Ignore the outside world
• Arrogant
• Justify bad results
• Dont listen to customers
• Dont 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
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Signs of denial
How they act
What they say

• Its a general industry trend
• What problem?
• Its not our fault
• The budget was too ambitious
• Its a short time issue
• Its the recession
• Corporate doesnt understand
• It will be ok next month
• It cant happen here
• Weve always done it this way
• Our business is different
• If it isnt broken, dont 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 whore doing worse

The Sun lounge
Wrong direction door
Dungeon of denial
Paralysis pit
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Signs of confusion
How they act
What they say

• What are we doing?
• What should we do?
• How did we get into this mess?
• Lets hire some consultants
• What are our competitors doing?
• What have I done wrong?
• We must do something now
• Ive been saying that for years
• Were 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
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Signs of renewal
How they act
What they say

• Lets make it happen
• Lets do it together
• This is a good place to work
• Lets tell everybode about this
• This is our plan
• Its been tough, but weve made it
• Were doing well, but we could do better
• We have to trust each other
• We wont do it if it doesnt fit our strategy

• Learning
• Trust, delegation
• Independence
• Accepting risk
• Flexibility, creativity
• Trying new approaches
• Enjoying themselves
• Continually improve
• Stay focussed
• Set new targets
• Dont believe all their own publicity
• Regularly review progress and process

The Sun lounge
Wrong direction door
Dungeon of denial
Paralysis pit
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Vriendelijk bedankt voor uw aandacht