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Complete Metal Packaging Production Equipment 苏州斯莱克精密设备股份有限公司 Suzhou SLAC Precision Equipment Co., Ltd. Actions speak Louder than words www.slac.com.cn

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Page 1: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

Complete Metal Packaging Production Equipment

苏州斯莱克精密设备股份有限公司

Suzhou SLAC Precision Equipment Co., Ltd.

Actions speak

Louder than words

www.slac.com.cn

Page 2: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

The Market for Metal Packaging Equipment in 2016

Two-piece DWI lines

SS

1

3

www.slac.com.cn

High-Speed EOE lines

2

Corima

4

Page 3: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

CHAPTER ONEThe Market for Metal

Packaging Equipment in 2016

Page 4: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

www.slac.com.cn

Our consumer markets

106

317

Beverage

Food

bn units

Growth rate in volume, 2010-2016

Europe

+1%

-1%

Asia Pacific

+5%

+3%

World

+3%

+2%

NorthAmerica

-1%

-1%

China

+18%

+11%

Malaysia +7%Vietnam +11%Indonesia +7%

Page 5: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

www.slac.com.cn

Can-makers spend 5% of sales on Capex

Average5.0%

Page 6: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

www.slac.com.cn

Good start to 2016

Average5.0%

Page 7: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

www.slac.com.cn

Asian companies spend more than twice the average

Multinationals: 4.5%

Asia: 12.6%

EBITDA 13.5%

EBITDA 18.1%

Page 8: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

www.slac.com.cn

5% Capex spend means equipment market of $ 3.5 bn

Capex$ 3.5 bn

Global MetalPackaging

$ 70.5 bn

5%

Page 9: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

www.slac.com.cn

Very fragmented market

0

100

200

300

400

500

600

12 Large$ 1.9 bn

30 Medium $1.1 bn 70 Small $0.5 bn

$3.5 bn

SLAC

Page 10: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

www.slac.com.cn

More fragmented than most can-maker markets

Top three companies

market share

Beverage cans 66%

Food cans 41%

Metal Packaging

Equipment

27%

General Line cans 26%

Page 11: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

www.slac.com.cn

Trends

North America & Europe

Flat market volumes

Supply/Demand balance

Multinationals (4 in bevcan)

Re-position the can to recover growth: Mineral Water, Non-carbonated,Craftbeer, Bio foods, flavour extensions, limited editions

Slim, sleek, bottles, EOE

Concentration of manufacturing to lower costs, especially Easy Open Ends

Increasingly short runs

Page 12: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

www.slac.com.cn

Trends

North America & Europe S.E.Asia

Flat market volumes Growth

Supply/Demand balance Overcapacity in China

Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan)

Re-position the can to recover growth: Mineral Water, Non-carbonated,Craftbeer, Bio foods, Ethnic flavourextensions, limited editions

Growth from Asia-specific recipes: Non-carbonated, protein drinks, Asian speciality beverages, congee

Slim, sleek, bottles, EOE Slim, sleek, bottles

Concentration of manufacturing to lower costs, especially Easy Open Ends

Conventional cost reduction: speed, more uptime, lower waste, gauge reductions

Increasingly short runs Very high print standards

Page 13: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

www.slac.com.cn

Our strategy

• Grow internationally, through acquisitions or joint ventures• In Europe and North America• Provide real time service, spare parts and customer support across

the globe• Focus on the most technically demanding:

• Two-piece DWI & DRD• Easy Open Ends

• Expand the product range in these two segments• Install complete lines

Page 14: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

CHAPTER TWOComplete High Speed EOE

Manufacturing Lines

Page 15: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

EOE High Speed Conversion Systems, alu and steel

23 installed since 2011

www.slac.com.cn

Page 16: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

High speed Shell Presses

11 Coil-fed, 9 Sheet-fed since 2011

www.slac.com.cn

Page 17: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

Complete high-speed EOE lines (6)

www.slac.com.cn

Page 18: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

CHAPTER THREE 2 piece DWI Lines

Page 19: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

Cupper System (1)

Cupper die set (4)

www.slac.com.cn

2-piece DWI

Page 20: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

Inside Spray (22)

www.slac.com.cn

2-piece DWI

Page 21: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

Bodymakers (24)

Trimmers (12)

www.slac.com.cn

2-piece DWI

Page 22: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

Neckers (9)

www.slac.com.cn

2-piece DWI

Page 23: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

Complete Turn-key lines (2)

www.slac.com.cn

2-piece DWI

Page 24: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

CHAPTER FOURCorima

Page 25: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

First step into Europe

Based near Bologna,

Italy

Brings quick

response customer

service capabilities

to Europe

Page 26: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

Can Vacuum Testers End Wrappers/Unwrappers

www.slac.com.cn

Enriching our Product Range

Electrocoatersfor EOE

Page 27: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

Electrocoaters for EOE (22)Full coverage post repair system for steel EOE

www.slac.com.cn

Page 28: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

Can Vacuum Testers (153)In-line control system for 3-piece cans

www.slac.com.cn

Page 29: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

End Wrappers/Unwrappers (133)In-line handling of ends, paper and plastic wraps

www.slac.com.cn

Page 30: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

CHAPTER FIVEResources

Page 31: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

www.slac.com.cn

More International

Thomas JimenezManaging Director, SLAC Precision Equipment Corp. USAJoint Venture SLAC/ICSBased in Dayton, Ohio

Kato Takeshi, Vice General Manager, Overseas Service EngineerBased in Suzhou

Nuno Muller De Castro Vice General Manager, EngineeringBased in Suzhou

Page 32: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

www.slac.com.cn

SLAC has the will and the resources

• Over 100 design engineers in Suzhou

• Advanced users of Numerical Simulation

(FEA)

• All have University/Technical College

qualifications

• Link to Tsinghua University Graduates

• Access to capital through Shenzhen Listing

Page 33: Complete Metal Packaging Production Equipment · Supply/Demand balance Overcapacity in China Multinationals (4 in bevcan) Regional and multinational players (23 in bevcan) Re-position

金属包装生产成套设备Complete Metal Packaging Production Equipment

苏州斯莱克精密设备股份有限公司

Suzhou SLAC Precision Equipment Co., Ltd.

Actions speak

Louder than words

THANK YOU!