Specialty Chemical Business Update Superior Plus by alicejenny

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									 Investor and Analyst Update
Port Edwards, Wisconsin Plant
    September 12th, 2012
             Forward-Looking Statements
Certain information included in this presentation is forward-looking, within the meaning of applicable Canadian securities laws. Forward-
looking information includes, without limitation, statements regarding business strategy, market conditions, projected costs, capital
expenditures, financial results and plans and objectives of or involving Superior and Superior Plus LP. Forward-looking information in
this presentation includes but is not limited to business segment outlooks, business strategy and objectives, future capital expenditures,
future economic conditions, and commodity prices and costs.

Forward-looking information is based on various assumptions that Superior believes to be reasonable. Those assumptions are based on
information currently available to Superior, including information obtained from third party industry analysts and other third party sources
concerning the historic performance of Superior's businesses, anticipated financial performance, current business and economic trends,
and the other assumptions set forth under the “Outlook” sections contained in Superior’s 2012 Second Quarter Management Discussion
and Analysis (MD&A). Readers are cautioned that the preceding list of assumptions is not exhaustive.

By their very nature, forward-looking information involve inherent risks and uncertainties, both general and specific, and risks that
predictions, forecasts, projections and other forward-looking information will not be achieved or that expectations will prove to be correct,
some of which are described in this presentation and in the 2012 Second Quarter MD&A. Such forward-looking information necessarily
involves known and unknown risks and uncertainties, which may cause Superior's or Superior Plus LP's actual performance and
financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such
forward-looking information. We caution readers not to place undue reliance on this information as a number of important factors could
cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions
expressed in such forward-looking information. These risks and uncertainties include but are not limited to the risks referred to in
Superior's 2012 Annual Information Form under the heading “Risk Factors”.

When relying on our forward-looking information to make decisions with respect to Superior, investors and others should carefully
consider the foregoing factors and other uncertainties and potential events. Any forward-looking information is made as of the date of this
presentation and, except as required by law, Superior does not undertake any obligation to publicly update or revise such information to
reflect new information, subsequent or otherwise. All dollar amounts are in Canadian dollars unless otherwise noted. The forward-
looking statements contained in this presentation are expressly qualified by this cautionary statement.
                          ERCO Worldwide
                       Management Committee



                                                       Paul Timmons
                                                          President



                     Sheila Burke
                                          Ed Bechberger               John Engelen
 John Christie      Vice‐President                                                        Steve Webb        Patrick Lefebvre 
                                         Sr. Vice‐President           Vice‐President, 
Vice President,    Regulatory Affairs                                                    Vice‐President,     Vice‐President, 
                                              Sales and                  Business 
 Supply Chair         & External                                                            Finance         Human Resources
                                             Operations                Development
                       Relations
           Business Overview

• Manufacturer and supplier of specialty chemicals and
  provider of technology related services
• Largest producer of sodium chlorite in North America
  and Worldwide
• Second-largest producer of sodium chlorate in
  North America and Worldwide
• Third largest producer of potassium chloralkali products
  in North America. Facility is capable of operating above
  design expectations
• Nine manufacturing facilities
• Approximately 530 employees
                   Summary

• Stable cash flows
• Strong pipeline of opportunities
• Demonstrated an ability to effectively execute a variety
  of projects
• Product and geographic expansion projects are being
  developed
• Financial outlook ... similar to 2011
                  Business Overview
                     Geographic Footprint
                                                    CANADA
•   510,000 MT sodium chlorate                        Grande Prairie

    capacity from 7 plants                                Saskatoon
                                       Vancouver          Hargrave      Thunder Bay
                                                                                  Buckingham
                                                                          Toronto
•   10,500 MT sodium chlorite                       Port Edwards

    capacity from 2 plants – largest               USA
                                                                       Valdosta
    worldwide

•   39,000 MT chloralkali product
    capacity
    at Saskatoon

•   103,000 MT potassium &                                                            BRAZIL

    chloralkali products capacity at
    Port Edwards
                                                                                  ARGENTINA
•   Sales offices – China and
                                                                   CHILE
    Japan                                                                                URUGUAY
             Business Overview
             Product Diversification
Superior has diversified its Specialty Chemical Business

                     2011 EBITDA
              Business Overview
            2012 Brief Market Update

Sodium Chlorite
•   Sodium chlorite is an emerging chemical with process applications
    in food, water treatment, oil and gas, and disinfection
•   Sodium chlorite is made from sodium chlorate
•   There are only two producers in North America, ERCO is the largest
•   Significant growth potential for sale of both technology (worldwide)
    and the chemical itself
•   Currently exclusive partner with DuPont for market development
              Business Overview
            2012 Brief Market Update
Chlorate
•   Pulp mills running at good utilization rates – stable market
•   Chlorate pricing stable – not many contracts open
•   100,000 tonnes (approx.) of demand has returned to
    North American market since 2008
•   ERCO's portfolio is sold out for 2012, and with few contracts
    opening up, we expect to be in the same position for next year
•   ERCO can service the export market from both coasts. Important
    considering North America's low cost energy
Bleached Chemical Pulp Growth


         Pulp Capacity
“Bleaching Technology Leader"

• ERCO uses its own proprietary technology in its
  chlorate and chlorite production processes
• ERCO is one of only two companies world-wide
  that supply sodium chlorate and equipment that
  uses the chlorate to bleach pulp
• ERCO has developed technology to remotely
  monitor the generator in the mills to optimize their
  operations
• ERCO often gets first look at new market
  opportunities
             Business Overview
            2012 Brief Market Update

Chloralkali
•   YTD operating rates mid-80’s
•   Demand remains strong
     - Fertilizer - strong
     - Oil field – growing
     - Food - stable
     - Export markets – strong
     - Low natural gas prices
•   Europe and China not in position to compete
  Chloralkali Industry Gross Margin
                History




Source: IHS Chemical
    ERCO Chloralkali Industry Segment
              Sales - 2011
                                           TiO2 Vinyls    Ag
                                           3.6% 2.9%     5.9%
                                                                Ag Intermediates
                       Pulp & paper                                   3.4%
                          11.5%

                                                                           Bleach
                Pool Chemicals
                                                                           16.3%
                     0.8%
                       Others
                        6.9%


                                                                              De-icing
                                                                               3.6%

                                                                            Distribution
                                                                               4.4%

                          Oil & gas                                     Fertilizer
                           20.3%                                          4.9%


                                                           Food
                                                           15.5%


%’s based on sales volumes in dry tonnes
                Chloralkali

Port Edwards and Saskatoon
• Supply basic feedstock for most fundamental
  chemicals
• Significant geographic advantage
   -   Food
   -   Fertilizer
   -   Water Treatment
   -   Oil & Gas
             ERCO Chloralkali
          Future Business Model
• ERCO is primarily an “alkali” player
• Minimize dependence on merchant chlorine
   - Announced Port Edwards 2nd burner will consume up
     to 75% of our chlorine at Port Edwards
   - A 3rd burner in Saskatoon under review would
     consume up 100% of our chlorine at Saskatoon
   - HCl provides incremental profitability over Cl2

• Flexibility in optimizing HCl vs. Cl2 netbacks
ERCO HCl Geographic Advantage




                        Confidential
            ERCO Advantages

• High barriers to entry
• Internal technical strength and in-house technologies
• Proprietary technology
• International experience – active in many countries
   - Diverse production locations
   - Export capability from East and West coasts
• Focused sales and service teams
• Stable long-term workforce
• Strategically placed chloralkali production facilities
Specialty Chemicals Opportunities

 • Continue to optimize existing chemical facilities
 • Chlorate industry consolidation
 • Exploring international expansion opportunities
    - Leverage chlorine dioxide technology
    - Leverage strategic partnerships … e.g. South America
 • Port Edwards KOH/HCl expansion opportunities
 • HCl in Saskatoon under consideration
 • Use Port Edwards facility expansion to attract customers
   to adjacent land (60 acres)
 • Opportunities to expand into other product lines
                     Our Future

• Chemistry is providing population demanded
  solutions:
   -   Efficient energy production
   -   Clean water
   -   Increased crop yield
   -   High quality paper products

• ERCO products are fundamental in all these areas
• Opportunities exist to grow through
   Increased population and standard of living needs

• Historically stable cash flows
      > 20% of revenue
        Financial Summary




• Revenue CAGR = 10%
• EBITDA Margin averaged 21%
Note 2011/2010 on IFRS basis; 2009 on Canadian GAAP basis
Port Edwards Plant is located in South Wood County in
                 central Wisconsin.
  Organization chart
                        Plant Manager
                         Geoff Bertin


 Production Mgr                          Technical Mgr
 Mark Schneider                           Dawn Jensen



Maintenance Mgr                          Commercial Mgr
 Brian Caldwell                           Rona Rossier
                                             Abel


Safety, Security Mgr                     Environmental Eng
 James Bergeron                            Dan Cummins




                         HR Advisor
                       Rebecca Ksionek
            Responsible Care

•   ERCO Worldwide is an active member of ACC
    (American Chemistry Council) and the Chlorine
    Institute

•   The Port Edwards facility operates under the
    principles of Responsible Care®.

•   The site will be verified through a third party of
    ACC in Q2 2013
                            Safety

Safety is a core value at
ERCO Worldwide

Our safety policy is based
on the belief that all
accidents and incidents
are preventable

“Because I work at ERCO
I know Iwill be injury
free”!
  Process Safety Management

• Process Safety Management of Highly Hazardous
  Chemicals – OSHA CFR 1910-119
• 14 Elements covered under Process Safety
  Management
• Employee/Contractor Participation and Training
• Hazard Identification, Analysis
• Safe Work Processes
• Emergency Planning and Incident Investigation
• Mechanical Integrity
Safety Performance



           July 31, 2012

2+ Years without a recordable injury
                     Environment
•   ERCO Worldwide, as a manufacturer and supplier of
    chemicals, technology and services, recognizes that it is
    responsible for achieving sustained growth of its business
    together with an ethical responsibility for the environment.

•   The plant constantly works under updated environmental
    standards. Corporate resources and independent consulting
    companies are regularly engaged to audit for standard
    compliance.
Environment Performance



               2.5 years
 Without reportable environmental incidents
Environment:
-   2012 Zero hazardous waste virtually eliminated going forward
-   No historical Environmental legacy issues
              Chloralkali Products


Plant Capacity:       103,000   MT /year
Liquid Chlorine        72,530   tons
Hydrochloric Acid      42,600   dry short - 85,200 upon project completion
Sodium Hydroxide       76,800   dry short
Potassium Hydroxide    90,000   dry short
                   Chloralkali –
               Customer Satisfaction

•   2011 Corporate POI Target: 99.65%
    - Port Edwards:           99.67%
                  Our Employees

•   Our highly skilled people ensure high operating standards in all
    areas
•   Safety, environment & process safety systems are managed by
    specialized experts in the field.

                          Area                Employees
         Commercial and Management               19
         Engineering and Technical               10
         Production                              39
         Maintenance                             17
         Plant Services                           9
         Lab Technicians                          4
                                     Total       98
                  ERCO Technology


-   Construction, operation
    and maintenance
-   Highly automated plant
-   Safety Interlock System
    will shut it down if
    operation moves outside
    set parameters
                                       Chloralkali Electricity Efficiency
                                3200



                                3000                           25% Membrane Project
                                                               Efficiency Improvement
Kilowatts per production unit




                                2800



                                2600




                                2400



                                2200



                                2000
                                         2007   2008   2009   2010               2011
Technology
                 Chlor-alkali ECU Production
                                                                  ECU
         RAW MATERIALS                                                                     PRODUCTS
                                                                  OUTPUTS

                                                                                           Caustic Soda
                                                                        Caustic Soda       (Sodium Hydroxide)
                            Brine                                       NaOH – 1.12 Tons
       Salt
                          Treatment                                           or           KOH (Potassium
                                                                  E     KOH – 1.59 Tons
                                                                                           Hydroxide)
                                                                  L
                                                                  E
                                                                  C
KCl                                           1.65 Tons NaCl                               Chlorine
              Chemical         Ion                   or
                                                                  T         Chlorine
 or
NaCl          Treatment     Exchange           2.10 Tons KCl      R         1.00 Tons
                                            2.2 mWh Electricity   O
                                                                  L
                                                                  Y                         HCL (Hydrochloric
                                                                                            Acid)
Carbon Dioxide   Caustic Soda     Hydrochloric                    S
                 Or               Acid                            I
                 Caustic Potash
                                                                  S         Hydrogen
                                                                            0.03 Tons
                                                                                           Hydrogen Gas
Property Expansion
                            Site Recognition

                               WEWG Business
                                Friend of the
                                Environment




Cl2 Institute - Transcaer
Individual Achievement
          Award
                   Site Recognition
•   Cl2 Institute 2011 Process Safety Award for: Total Calendar Years
    Achieved with “Zero Reportable Quantities” and “Zero Risk
    Management Plan incidents (2006-2011)”
•   NS Rail Thoroughbred Award
•   CSXT Rail Chemical Safety Excellence Award
•   UP Rail Chemical Transportation Safety Pinnacle Award
•   Supplier of the Year Award for a New Customer in 2011
•   United Way
Questions & Answers
    Thank you……

Now you will receive visitor orientation
before touring the facility.
    Plant Tour Route

        5                1.
                         2.
                              Office + Training Room
                              Control Room
                         3.   Brine Area + IX
                         4.   Central Tank Farm
                     1   5.
                         6.
                              Cell Room
                              HCl Project area
                 2       7.   Boiler, Evaporator , Cooling Tower


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