CMD 2013 Construction...• MBA and B.Sc. Mechanical Engineering • MAN Group, Sinotruk Hong Kong...
Transcript of CMD 2013 Construction...• MBA and B.Sc. Mechanical Engineering • MAN Group, Sinotruk Hong Kong...
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Anders KjellbergVP Business Development
Joanne CookeVP Finance
Sandvik ConstructionCapital Markets Day 2013
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Protective Equipment
AssemblyPoint
EmergencyExit
EmergencyNumber
Alarm
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Safety is our top prioritySafety first
Sandvik Capital Markets Day 2013, Business Area Construction
026-261000or 112
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Anders Kjellberg
Sandvik Capital Markets Day 2013, Business Area Construction
• Sandvik 7 years
• VP Business Development
• Construction Business Area
• SMC, Construction Segment
• Bain & Company 10 years
• Management Consultant
• London, Stockholm and Shanghai
• MBA, MA and M.Sc. in Civil Engineering
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CNS LTIFR* per year
Our EHS vision is to achieve zero harm to our people, the environment we work in, our customers and our suppliers.
EHS commitment
Sandvik Capital Markets Day 2013, Business Area Construction
* Lost Time Injury Frequency Rate
• SEK 9.7 B sales and 13% ROCE 2012
• Core applications competencies:
Breaking, Drilling & Crushing
• 25000 Customers:
construction contractors and quarry operators
• Global footprint with local service
• Synergies: customers, distribution & supply
• Lifecycle focus: direct, distributors & OEMs
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Our business
Sandvik Capital Markets Day 2013, Business Area Construction
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• 1000 headcount reductions
• >500 supplier contract negotiations
• 47 new products and improved time to market
• 65 new distributor agreements
• From 1 to 4 brands
• Shanbao integration
• 80 000 m2 of land purchased in India
Foundation in place for future profitable growth
Achievements
Sandvik Capital Markets Day 2013, Business Area Construction
CH550 Cone Crusher
Dinggui Gao: President
• MBA and B.Sc. Mechanical Engineering
• MAN Group, Sinotruk Hong Kong Ltd.
• Honeywell Automotive Parts, Shanghai China
• Eagle Ottawa China Ltd. Shanghai China
• Robert Bosch GmbH, Germany and China
• Tractor Research Institute, Luoyang China
Finance
BD
Markets
HR
Sourcing
PA BSDT
PA Mobiles
PA SCS
PA TOCS
PA Mid-Market
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Six management appointments
New member Original member
Sandvik Capital Markets Day 2013, Business Area Construction
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Market development
* Forecast; Source: Off Highway Research August 2013; April 2013; March 2012
CAGR 2013-2017
World
North America + Europe
ROW
China + India
March 2012
April 2013
August 2013
Sandvik Capital Markets Day 2013, Business Area Construction
Construction Equipment Market (Units)
3,7%
3,8%
3,5%
4,0%
Time of forecast
0
200 000
400 000
600 000
800 000
1 000 000
1 200 000
1 400 000
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Joanne Cooke
Sandvik Capital Markets Day 2013, Business Area Construction
• Sandvik 14 years
• VP Finance, Sandvik Construction
• Hard Materials, BU manager
• Tooling, Finance and PA manager
• UK, USA and France
• House Building PLC, UK
• Finance
• ACMA, CGMA
Order intake and invoicing
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0,5
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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2007 2008 2009 2010 2011 2012 2013
Total order intake, external customers
Total invoicing, external customers
BSEK
Share of Construction Total
16%
8%
40%
11%
21%
4%
Order intake change (p/v), 2013 Q2 compared with 2012 Q2
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+10%
-17%
+13%
-5%
+29%
-50%
Sandvik Capital Markets Day 2013, Business Area Construction
Order intake 2013 Q2 vs. 2012 Q2
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• 2 384 MSEK Order Intake
-4% vs. Q2 2012; +2% p/v
• 2 326 MSEK Invoicing
-10% vs. Q2 2012;-4% p/v
• 141 MSEK EBIT
-36% vs. Q2 2012
• 10% ROCE
vs. 5% in Q2 2012; rolling 12 months
Sandvik Capital Markets Day 2013, Business Area Construction
Q2 2013 results
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2011 2012Volume One-offs Currency Net Productivity
EBITNWCROCE
8%25%13%
Sandvik Capital Markets Day 2013, Business Area Construction
1%28%
1%
EBIT Bridge MSEKPerformance improvement
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2012
First half
2013
First halfVolume One-offs Currency Net
Productivity
7%27%
5%
6%26%10%
Sandvik Capital Markets Day 2013, Business Area Construction
Bridge MSEKEBIT 2012-2013
EBITNWCROCE
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1A&S
cost efficiency
2Equipment assembly
cost efficiency
3Tools & consumables
profit boost
4NWC optimization
5Sourcing cost
reduction
6Offering pruning &
introductions
7Profitable
sales boost
8Shanbao
Sandvik Capital Markets Day 2013, Business Area Construction
Eight Turnaround building blocks
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1000
2000
3000
4000
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6000
2011 Q4 2013 Q2
3rd PartyEmployees
PermanentEmployees
• 1000 FTE reduction realized
• Additional FTE reductions ongoing
• Restructured market areas
• 25 new level 3 appointments
• 10 new key manager external hires
Sandvik Capital Markets Day 2013, Business Area Construction
Construction HeadcountOrganizational restructuring & development
Efficiency and cost competitiveness
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• Achieved cost reduction target • Adjust and leverage growthA&S
Equip-ment
TOCS
NWC
Sourcing
• ~30% BCC Supply • Further increase BCC %
• +8% GP 1H 2013 vs. 1H 2011 • Grow
• Reduced NWC by 2% points • Reduce and leverage growth
• Achieved cost reduction target • Accelerate and leverage growth
Sandvik Capital Markets Day 2013, Business Area Construction
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5 6 7 8
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47 new product launches
Rammer breakers Bretec breakers QJ341 mobile jaw crusher
RH460 down the hole drill hammerSoft rock drill bits DH350 down the hole drill rig
QI441 PrisecTM mobile impact crusher
DC125R top hammer drill rig
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• 24 Sales Areas
• Product Line results accountability
• Differentiated go-to-market
• Multi-brand
• Service
Sandvik Capital Markets Day 2013, Business Area Construction
Profitable Sales Boost
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5 6 7 8
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Achievements
• Improved EHS performance
• Improved product quality
• New management team
• 7 new stationary crushing and screening products
Priorities
• Sales and service growth
• Distributor development
• Mobile crushing and screening
• Low cost operations
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5 6 7 8
Sandvik Capital Markets Day 2013, Business Area Construction
Shanbao
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Global leader in selected niches
• Industry benchmark for EHS
• Premium and mid-market solutions leader
• Local service and distribution leader
• Attractive returns on capital employed
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Five strategic priorities
Cost Efficiency
Competitive Footprint
Service as a business
Sales Boost
M&A and Partnerships
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Q&ACapital Markets Day 2013