August 2013 Dr. Hans Brändle, CEO Segment Coating...Dr. Hans Brändle, CEO Segment Coating Page 2...
Transcript of August 2013 Dr. Hans Brändle, CEO Segment Coating...Dr. Hans Brändle, CEO Segment Coating Page 2...
Page 1 05/08/2013
Oerlikon Segment Coating
August 2013
Dr. Hans Brändle, CEO Segment Coating
Page 2 07/08/2013
Key investment highlights
Geographical expansion and operational excellence as key success factors 3
Undisputed technology leader: Innovation at the core of the Balzers’ DNA 4
Sustainable growth and profitability for more than a decade 5
2 Undisputed global market leader with non-replicable coating service network
1 Attractive growth market – megatrend towards advanced surface engineering
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CVD(b)
PVD(a)
Hardening Thermal Diffusion
(a) PVD = Physical Vapor Deposition (b) CVD = Chemical Vapor Deposition
Wear resistance
Friction
Hardness
Toughness
Bulk properties Surface properties
Hard
Chroming
Thermal
Spray
Technologies for engineering material properties of metals
Technology trends
PVD substitutes CVD
PPDTM replaces hard chroming
1 Megatrend towards advanced surface engineering
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50 x + - + -
Plasma
Plasma-assisted deposition of thin-films under high vacuum
Common technology
thin-film
0.001 mm
- 0.005 mm
Human hair 0.05 mm
1 Thin film technology: fastest growing advanced surface solution
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Limited number of high-end suppliers
Few service providers with global footprint
Sustainable market growth: > 2 times GDP growth; CAGR ~7%
Megatrend towards advanced surface engineering
Clean surface technologies as the market standard of tomorrow
R&D as key entry barrier in high-end applications
Customer proximity - and thus high density network – as success critical for tool coating services
Meeting particular requirements of highly diverse industrial applications
Dynamic growth of applications
Increase productivity
Reduce friction and wear
Change to clean surface solutions
Entry barriers
Competition
Needs Market characteristics
1 Thin film technology as an attractive growth market
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Benefit on COMPONENTS for the automotive and mechanical engineering market Reduced friction
- enables better fuel efficiency Increased wear resistance
- enables higher load capacity - extends life time - improves reliability
Benefit on TOOLS for metal processing Increased wear resistance
- enables higher productivity and leads to lower cost per piece
- improves life time
1 Unique benefits of thin film coatings
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Key investment highlights
Geographical expansion and operational excellence as key success factors 3
Undisputed technology leader: Innovation at the core of the Balzers’ DNA 4
Sustainable growth and profitability for more than a decade 5
2 Undisputed global market leader with non-replicable coating service network
1 Attractive growth market – megatrend towards advanced surface engineering
save space
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92
13 12 05 03 04 11
56
09 10 07 08 06
Emerging Markets
Established Markets
# of coating centres
per July 2013
2 Non-replicable network of 92 coating centres in 33 countries – close to our customers
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Fundamentals Adding value to the customer’s product:
1. Receive parts 2. Coat parts 3. Send parts back to same
customer Key success factors Delivery time Constant quality in
product and service Goal Just in time < 48h service
(requires customer proximity < 200km)
Coating
~0.5 to 3 days
~1 day Pickup or parcel service
Customers
Automotive Tooling
~1 day Pickup or parcel service
Oerlikon Coating JGC Presentation, June 23, 2009
2 48h service as a standard: the coating service cycle of Oerlikon Balzers
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Production
Recoating Regrinding
Logistics
One-stop-shop for tool reconditioning
Example: a drill can be reconditioned up to 10 times
2 One-stop-shop for reconditioning as natural expansion of existing business model
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Key investment highlights
Geographical expansion and operational excellence as key success factors 3
Undisputed technology leader: Innovation at the core of the Balzers’ DNA 4
Sustainable growth and profitability for more than a decade 5
2 Undisputed global market leader with non-replicable coating service network
1 Attractive growth market – megatrend towards advanced surface engineering
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49%
20%
31%
Early mover: Expansion into emerging countries
Accelerated shift to Asia Extraordinary growth of China operations
Sales: Emerging markets drive growth
1995 2000 2005 2010
India Korea
Singapore
Brazil
Mexico
Poland
China
Argentina Thailand
Czech Rep.
Turkey Romania
Indonesia
Russia
60%21%
19%
Total Sales per Region
Europe Americas Asia
2008 2012
12-m
-tra
iling
; M
arc
h 0
8 =
10
0
0
50
100
150
200
13
Emerging Countries
Established Countries
10 12 11 08 09
Hungary
2004 2006 2008 2010 2012
Chengdu
Chongqing Jinan
Suzhou Tianjin DongGuan Xi’An
Wuhan Changchun
HanZhong
Malaysia
3 Strong footprint in emerging markets Emerging markets as growth drivers
WenLing
* Size of Germany as comparison
*
save space
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Ranking Gross Profit per Coating Centre 2006 & 2012 (adjusted by depreciation)
50 top centres > + 600 bps
Next 25 centres > + 1’700 bps
GPDA 2012
GPDA 2006
3 Operational excellence: Internal benchmarking as key success factor
Δ +~800 bps
Ø 2012
Ø 2006
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Key investment highlights
Geographical expansion, operational excellence as key success factors 3
Undisputed technology leader: Innovation at the core of the Balzers’ DNA 4
Sustainable growth and profitability for more than a decade 5
2 Undisputed global market leader with non-replicable coating service network
1 Attractive growth market – megatrend towards advanced surface engineering
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1979: Oerlikon Balzers accomplishes breakthrough for hard, wear
resistant thin films, deposited at temperatures below 500 °C.
Advantage: exact replication of surface (e.g. sharp edges); homogenous thin film with defined texturing ; lower deposition temperature than CVD
Technology used: reactive PVD (also called Ion-Plating)
High edge definition Thin and
homogeneous film
4µ
m
Oerlikon Balzers as pioneer for tribological thin films
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Cathodic Arc 1995
Sputtering 1994
PECVD 2000
2012
2011
IONITRON 1979
2005
2006
Innovation at the core of Oerlikon Balzers’ DNA
4
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i.e. Front Grills: Chrome effects (gloss, mat) Back lightning Radar transparent Dark chrome
i.e. Mirror Housings: Translux (hidden turn light)
i.e. Door Handles: RF-transparent for key-less go Back lightning
i.e. Bumper panels: Straight production process > allows usage of
flexible parts which can be bent to final curvature during assembly
i.e. Door panels: Highly resistant regarding
corrosion (Russian mud)
ePD for automotive exterior: unlimited corrosion resistance & exiting new features
4
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Thin film technology about to enter the aerospace market
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S3p™ as the unique solution
Smooth coatings: a brilliant idea industrialized S3p™ as the solution
Rough coatings: a long lasting problem
Over more than a decade the industry has made attempts to deposit hard and smooth coatings State of the art: arc evaporated coatings
chip flute, drill
microdrill <1mm
end mill
surface roughness
end mill chip flute, drill
The smooth revolution: S3p™ as the holy grail of thin film technology?
4
surface roughness
competition
microdrill <1mm
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Key investment highlights
Geographical expansion and operational excellence as key success factors 3
Innovation at the core of the Balzers’ DNA 4
Sustainable growth and profitability for more than a decade 5
2 Undisputed global market leader with non-replicable coating service network
1 Attractive growth market – megatrend towards advanced surface engineering
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Sustainable CAGR combined with high profitability for more than a decade
Sales development
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Sales actual
Sales in LC
mCHF
CAGR
> 7%
Profit development
Market leadership Constant and high service quality
Continuously following our customers (present in 33 countries to date)
Technology excellence Continuously setting new industrial standards
Standardized technology and business processes / Constant and high product quality
Performance driven management of a widely spread multi-cultural organization
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Responsible for: Global strategy, technology, standardized business processes, leadership pipeline
Advantage
Distributed leadership stabilizes the overall performance
Distributed leadership and standardized business processes leverage best of global and local
Global
management team
23 local management teams Responsible for: Local market, local P&L, local strategy
92 coating centres in 33 countries
~ 3’200 employees
Oerlikon Coating JGC Presentation, June 23, 2009
Our leadership philosophy: think global – act local
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Managing a high-performing decentralized & multi-cultural organization as key challenge
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balzers.experience 2011: multi-cultural key event employees from worldwide locations visited Balzers for the first time
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Unique DNA enabling further expansion
Multi-cultural mindset
Innovation
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Service orientation
Operational excellence
Balzers’ DNA sequences Balzers’ key success factors
Established pioneer with ability to industrialize own and adapted innovations and technologies
Service-minded company culture nurtured by daily feedback of key customers
Ability to develop and manage a high-performing decentralized & multi-cultural organization
Ability to standardize and validate processes and continuously improve the operational performance by benchmarking all sites/coating centers
Balzers continuously sets industrial standards
Coating Services as sustainable and profitable business model
Unique footprint in fast growing emerging markets
Consistent quality at high performance level in all coating centers worldwide
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Successfully integrated acquired pearls String-of-Pearls Acquiring (small) companies fitting into the strategy
Sequoia Implementing organic growth strategy
Focus Components
Focus Asia / China
Driving Innovation
Samputensili 05 Gear cutting IT Market share
Goldstar 06 Gear cutting US Market share
VST Keller 07 Forming tools
PPD™ DE Technology
Technopoli 07 Polishing BR Technology
Suomen Plasmapinta 08 Local market FI Market share
Hartec 10 ePD™ on plastics DE Technology
Rox 13 Regrinding AT Technology
Current strategy focus on sustainable and profitable growth
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Key take away
Geographical expansion and operational excellence as key success factors 3
Undisputed technology leader: Innovation at the core of the Balzers’ DNA 4
Sustainable growth and profitability for more than a decade 5
2 Undisputed global market leader with non-replicable coating service network
1 Attractive growth market – megatrend towards advanced surface engineering