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NASBITE2020 Exporter Summit

Improving Pricing and Profitability in Global

Eve LondonSector Marketing Director

Packaging & Paper Solutions

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USA

Brazil, SA

Our Brands

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Our Vision

INTEGRITY

We will place honesty and

integrity above all else.

SUSTAINABILITY

We will strive to be a profitable and

sustainable organization.

CUSTOMERS

We will satisfy our customers’ current expectations and

future needs.

PARTNERSHIPS

We will work innovatively as a

team.

SAFETY

We will maintain a proven culture of

safety and excellence.

To be the global leader in performance minerals that enables innovative product solutions for everyday life.

Value From the Ground Up

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Over 90 Years of InnovationKaMin is committed to advancing technology to help maximize our customer’s performance, effectiveness and efficiency.

• Our legacy of delivering results stems from nearly a century of progress in collaboration and innovation.

• Expansive resources and applications expertise provide KaMin the tools to create solutions.

• KaMin has pioneered enhancements in kaolin making us one of the most trusted brands in the industry.

Product Innovation Operational Excellence Expanded Product Portfolio

ISO 9001:2015 CertificationDedicated lab and equipment resources Technology platforms aligned to growth segments

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Mine and Benefication Plant LocationsMacon, Georgia USA

Sandersville, Georgia USAWrens, Georgia USAMunguba, Brazil SA

Make Down & Bagging FacilityAntwerp, Belgium EU

Dual continent supply source increases operational effectiveness and efficiency

while providing enhanced customer value.

With over 50 years experience in exporting, KaMin is recognized as a top 100 US

exporter spanning five continents and over 65 countries.

Customer Care CentersMacon, Georgia USAAntwerp, Belgium EU

Global Presence Logistics ExpertiseMake Down & Bagging Facility

Antwerp, Belgium EU

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KaMin Georgia OperationsMacon, GAYear Established: 1938

Sandersville, GAYear Established: 1999 (acquired)

Wrens, GAYear Established: 1966

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CADAM S.A.• Acquired in 2012 to enhance KaMin’s supply position as the

global fine-particle high bright leader• CADAM operations include the Morro do Filipe Mine in

Amapá and a beneficiation port and plant in the town of Munguba

• CADAM specializes in the processing of high glossing, fine and ultrafine particle kaolins

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PRINT PACKAGING LABEL FOODBUILDING & CONST

INDUSTRIAL SPECIALTIES

COATINGS & INKS

RUBBER & PLASTICS

HEALTH & BEAUTY

Magazines

Catalogs

Brochures

Flyers

Electronics

Beverages

CPG

Shipping

Cosmetics

Soap

Shampoo

Facial Mask

Tags

Tickets

POSs

Wine Label

Release Liner

Wraps

Clam Shell

Processing

Carrier

Automotive

CPG

Tire

Hoses

Gaskets

Roofing

Ceiling Tile

Paint

Concrete

Coil

Marine

Inks

Ceramics

Adhesives

Sealants

Crop Protection

Flame Retardant

Packaging & Paper Solutions Engineered Solutions

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PRICING EXCELLENCE

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PRICING IMPACTOPERATINGPROFIT IMPROVEMENT

• Improvements in price typically have 3-4 times the impact on profitability

2% Increase in …..

$29,000 $29,500 $30,000 $30,500 $31,000 $31,500 $32,000 $32,500

Baseline

Volume

Price

Volume Price/TN Cost/TN Margin/TNTotal

Margin

Baseline 100 $1,000 $700 $300 $30,000

Volume 102 $1,000 $700 $300 $30,600

Price 100 $1,020 $700 $320 $32,000

7% increase in margin

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Price Methodology

Value

Pricing based on value of the product and service provided

Customer

Pricing based on what the customer is willing

to pay

Competition

Pricing based on competitive price

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TRANSACTION LEVEL

MANAGEMENT

Pricing Excellence

Align prices with customer valueEmpower sales to defend value based prices

Value & EVE analysisValue tools to identify needs and communicate value

Consistently and proactively manage the value / price exchange

Price WaterfallAddressing price leakageOutlier identification & management

VALUE MANAGEMENT

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Value Management

Customers Value Price Costs Product

Customers ValuePrice Costs Product

Versus

Value Comes before Price and Cost

Value is established by understanding the features and benefits of the product and service and quantifying the value in dollars

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• High structure calcined kaolin used in the base coat of thermal paper providing better thermal insulation and reflectance of heat which maximizes the color development of the active ingredients in the thermal coating layer.

• Applications in direct thermal and transfer– Point of sale paper grades– Label and pharma paper grades– Thermal transfer paper grades

Superior Structure for Coating Bulk

KaMintex HS

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Value Identification - ExampleValue Driver Benefits Differentiation vs

CompetitorImportant to

CustomerSolid Supporting

DataPerformance Higher quality image More complete reaction of

thermal reaction components

High Competitive Comparison

Total Cost Reduce higher cost pigments Increased bulk density results in better coating

smoothness and less coat weight

High Formulation Analysis

Brand Predictive performance Technical support and expertise

Medium Dedicated lab resources

Efficiency Longer blade life reduces downtime for maintenance

Lower abrasion Low Hard to Measure

Offering and Experience can be Value Drivers

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Economic Value Estimation® (EVE)®

Reference Value

(Price of Next Best

Alternative)

Total Value Received

Total Value Received

Value Driver #1

Value Driver #2

Value Driver #3 Price set

in this range

Reference Value

Differential ValuePerformance

Total Cost

Brand

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Price Sensitivity Factors

Perceived Risk

Switching Cost Brand Effect

Reference Price

What is customer already paying / competitive price

Cost associated with switching to a new product

such as testing or design work

Reputation and /or previous experience

with the seller

Is the value really there?

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Price Setting

Total Value Received

Acceptable Price Band

Reference Value

Differential Value

Potential Price

Price Sensitivity

Accepted price band may be lower than the analytical price band due to price sensitivity

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Value Communication

Value Driver Key Talking Points Selling Tactics

Performance • Higher quality / print density and color density • Target markets hat require environmental resistance such as pharma and high end label

Formulation Cost • Removal of higher cost pigments and may remove thermal reactive dye in top coat / potential to lower base coat weight

• Target R&D• Show benefit with KaMin with

dedicated lab and technical resources available to assist in formula optimization

Efficiency Lower abrasion increases machine run times and extends blade life cycle at reduced paper loss

• Target audience is operations• Explain how product could help

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TRANSACTIONAL LEVEL MANAGEMENT

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• Participation in highly negotiated markets• Pricing authority involved many

individuals• Complex transactions with opportunities

for leakage• Limited system and processes to collect

and display data

Managing the Value / Price Exchange

Transaction Level Pricing

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Price Waterfall

LIST PRICE

REGIONAL DISCOUNT

QUANTITY DISCOUNT

LOGISTICS ADD

INVOICED PRICE

LOGISTICS COST

PRODUCT COST

MARGIN

Price Waterfalls can be used to identify Price Leakage

Port DestinationContainer Size

Volume Per Container

EVE® AnalysisPrice Strategy

Predefined Discount Structure

Could include T&CShip cycle

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Scatter Plot

• Quickly identify patterns and variation in pricing and outliers

• Can be based on margin, price, discounts

• Can be segmented by region, customer type

VOLUME

PRIC

E

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• Optimizes profitability• Reduces risk• Proactive and not reactive• Includes transactional price

management as well as value management

Price Management

Summary

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Thank You