Calgon Carbon Corporation

Transcription

1 Calgon Carbon Corporation Pacific Growth Equities Clean Technology Conference November 8, 2007

2 Forward-Looking Information Safe Harbor This presentation contains historical information and forward-looking statements. Statements looking forward in time, including statements regarding future growth and profitability, price increases, cost savings, broader product lines, enhanced competitive posture and acquisitions, are included in this presentation pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of They involve known and unknown risks and uncertainties that may cause the Company s actual results in future periods to be materially different from any future performance suggested herein. Further, the Company operates in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond the Company s control. In the context of the forward-looking information provided in this presentation, please refer to the discussions of risk factors detailed in, as well as the other information contained in, this presentation and the Company s filings with the Securities and Exchange Commission. 1

3 Agenda Company Overview Activated Carbon Products and Markets Ultraviolet Light Products and Markets Fundamental Changes at Calgon Carbon Corporation and in Activated Carbon Industry Growth Opportunities through Regional Expansion 2

4 CCC s Principal Business: Activated Carbon Products And Services Activated carbon removes impurities from air, water, and industrial processes World s largest producer and reactivator of granular activated carbon (virgin capacity 135 M lb.) 16 manufacturing, reactivation, and equipment fabrication facilities throughout the world 26 sales and service centers in 12 countries Strategy to become major producer of Powdered Activated Carbon (PAC) Highly technical Over 200 patents 2 R&D facilities (U.S. and U.K.) 3

5 CCC s Operations Are Global Houghton-le-Spring, England Ashton, England Grays, England Beverungen, Germany Feluy, Belgium Blue Lake, CA Stockton, CA Santa Fe Springs, CA Rockdale, IL Columbus, OH Pittsburgh, PA Big Sandy, KY Pearl River, MS Houston,TX Sulfur, LA Providence, RI Marlton, NJ Downington, PA Datong, China Tianjin, China Beijing, China Fukui, Japan Tokyo, Japan Shanghai, China Taipei, Taiwan Mexico City, Mexico Thailand Singapore S o Paulo, Brazil Headquarters Manufacturing Facilities Equipment Facilities Sales and Field Service ffices O 4

6 CCC Is Becoming A Worldwide Products And Services Provider Europe 29% 2006 Sales - $316.1M Asia 8% Americas 63% 5

7 Wide Variety Of Products And Technologies To Remove Impurities Granular Powder Fine Mesh (including Home Water Filters) Acid Washed Catalytic Impregnated Personal Protection Coconut Carbons Specialty Carbons Reactivation (Custom & Potable) IX Resin & Other Media IX Resin Regeneration Equipment Leasing Emergency Services Field Services Carbon Cloth Home Products - Tarnish Prevention and Odor Removal Consumer 4% Carbon/Service 83% Equipment 13% UV Disinfection Ion Exchange Odor Removal Carbon Adsorption Systems Small Treatment Systems Indoor Air Purification Metal Adsorption UV/Oxidation Purification Water Applications 6

8 CCC Serves Diverse Markets Water Treatment Accounts For 50% Of Revenue Market Environmental Water 24% Environmental Air 10% Potable Water 21% Industrial Processes 17% Food 13% Specialty Carbons 11% Consumer 4% 100% Segments containing water treatment applications 7

9 CCC Produces/Markets Activated Carbon Made From Coal And Coconut Type of Carbon % Market Share Americas Europe Asia Coal Coconut

10 Service Model Incorporates CCC s Manufacturing And Reactivation Strengths Reactivated carbon installed in polishing position Adsorption system Exhausted carbon transported to Reactivation Center Reactivated carbon transported to site Carbon in Reactivation Unit Carbon out Off-gas treatment for complete destruction of adsorbed organic compounds 9

11 CCC s Ultraviolet Light Technology UV Light for Drinking Water and Wastewater Disinfection $3-billion market 25%+ growth per year ( ) Drinking Water Disinfection ($1 billion) Control of Cryptosporidium driven by U.S. legislation (LT2) U.S. municipalities must treat for Cryptosporidium by 2012 Sentinel reactors (installed and sold) to treat 1.7 bgd Wastewater Disinfection ($2 billion) Launched C 3 Product Line in 2004 and 2005 Modular, open channel Low pressure, high output lamps C 3 products treating more than 100 mgd Emerging Market for Taste and Odor 10

12 Fundamental Changes At CCC And In Carbon Industry Are Driving Performance CCC Re-engineered in ITC Imposed Tariffs on Chinese Activated Carbon Imports Mercury Removal at Coal-Burning Power Plants could be Largest Market Ever for Activated Carbon 11

13 CCC Re-engineered In Offset $30M in Cost Increases Changed Commercial and Logistical Strategies in Carbon and Service Raised prices Exited low-margin sub-segments Optimized asset utilization Optimized supply chain Divested Non-core Businesses Reduced Headcount and Employee-Related Expenses Optimized Logistics and Production Planning Closed High-Cost Japanese Manufacturing Facility 12

14 Tariffs Signaled Fundamental Change In Carbon Industry Chinese Imports Resulted in Price Pressure on Activated Carbon ( ) In 2006 CCC and Norit Filed Anti-dumping Petition In 2007 ITC Imposed Tariffs of 62 to 228% (weighted average 68%) for Five Years Tariffs are having Significant Impact on Pricing CCC expects revenue of $25M from tariffs by mid

15 Re-engineering And Tariffs Have Had Positive Impact On CCC s Performance In 2007 September YTD ($ millions except per share data) Sales $219.6 $236.8 $256.3 Income from Operations (7.4) Net Income (1.8) EPS Diluted (0.04)

16 Mercury Removal Potentially Largest Single Market Ever For Activated Carbon Mercury Removal From Coal-Burning Power Plant Flue Gas CAMR regulations require 7 tons reduction by 2010 CAMR regulations require 23 tons reduction by 2018 States increasing reductions and/or expediting compliance New plants subject to regulated levels upon start-up Powdered Activated Carbon (PAC) Injection is leading abatement technology Mercury removal market will require production capacity expansion Current worldwide AC production 1.4B lbs M lbs. for mercury removal M lbs. for mercury removal

17 Injection Of Powdered Activated Carbon Is Leading Abatement Technology Injection of Powdered Activated Carbon (PAC) into the power plant flue gas stream, which adsorbs the mercury released by the burning coal, is widely considered the most practical, effective control technology. PAC is injected into the flue gas stream. The PAC (which holds the mercury) and particulate matter (fly ash), is removed by an Electrostatic Precipitator (ESP) and sent to landfill disposal or sold to cement manufacturers. 16

18 CCC Positioned For Leadership In Mercury Removal Market Developed New Products for Enhanced Mercury Removal FLUEPAC MC early bulk market FLUEPAC MC PLUS brominated for increased removal FLUEPAC MC derivatives value-added for niche market 17

19 CCC Positioned For Leadership In Mercury Removal (cont d) Established Leader in Activated Carbon Industry 65 years experience One of two major carbon manufacturers in U.S. Built and operate four carbon manufacturing facilities 18

20 CCC Positioned For Leadership In Mercury Removal (cont d) Electric Utilities Recognize CCC as Industry Leader Completed seven full-scale tests of FLUEPAC products (six states and Alberta, Canada) Discussions with 15 utilities that will require > 300M lbs. in 2010 Contract negotiations ongoing 19

21 CCC s Costs To Add Significant PAC Capacity Will Be Very Competitive Expansion Production Capacity (M lb.) Capital Cost ($M) Re-start Production Line Convert GAC Production to PAC Add Two Production Lines at Existing Plant 80 (E)* Outsource PAC As Needed? *Per production line 20

22 CCC Will Grow Through Regional Expansion Region Targets For Growth Opportunity(ies) Asia Pacific China India Central Europe Southern Europe Carbon and Service Service to Multinationals Carbon Carbon and Service Carbon and Service 21

23 Formula For Success Fundamental Change in Lower Cost Structure at CCC (Re-engineering) Fundamental Change in AC Industry (Tariffs) CCC Positioned to Participate in Potentially Largest Market Ever for Activated Carbon (Mercury Removal) Growth through Regional Expansion 22

24 Thank You Making Water and Air Safer and Cleaner 23