© 2011 Konecranes. All rights reserved.
HANDELSBANKENCAPITAL MARKETS SMALL/MID CAP SEMINAR
June 20, 2011Teo Ottola, CFO
© 2011 Konecranes. All rights reserved.
CONTENTS
• Konecranes in a nutshell• Strategy going forward• Looking ahead• Growth aspects
2
© 2011 Konecranes Plc. All rights reserved.
KONECRANESIN A NUTSHELL
3
© 2011 Konecranes. All rights reserved.
MISSION
Mission• We are not just lifting things,
but entire businesses
We deliver the highest lifecycle value by focusing on:
• Maximizing the productivity of uptime
• Minimizing the cost of downtime
4
© 2011 Konecranes. All rights reserved.
SALES SPLIT BY BUSINESS AREA & REGION (R12M)
5
58% 42%
16%
31% 53%R12M
1,628 MEUR(FY 2010 1,546)
R12M1,628 MEUR
(FY 2010 1,546)
(53)(30)
(17)
(57) (43)
© 2011 Konecranes. All rights reserved.
WE HAVE UNIQUE SERVICE BUSINESS
A UNIQUE BUSINESS IN THEINDUSTRY WITH ITS OWN RIGHT TO GROW
2/3 OF THE INSTALLED EQUIPMENT SERVICED IN-HOUSEProductivity of the service technicians lowReactive maintenance
> Too high downtime> Challenges to maintain skills to service modern equipment
3,500 serviceTechniciansservicingcranes andmachine toolsof all makes
Own,dedicatedmanagement
75% of equipment in maintenance contract base non-Konecranesequipment
Preventive maintenanceperformed by well-trained professionals
Level-based service concept up to fully outsourced material handling
WIN-WIN SITUATION FOR CUSTOMER AND KONECRANESImproved productivity and uptime
6
© 2011 Konecranes. All rights reserved.
EQUIPMENT MARKETS
Market size ~8 BEUR
PORT CRANES
LIFT TRUCKS
INDUSTRIALCRANES & COMPONENTS
NUCLEARCRANES
Position
# 3…5
# 3…4
# 1
Marketjustrestarting
7
Other suppliers87 %
Konecranes13 %
© 2011 Konecranes. All rights reserved.
STRATEGY GOING FORWARD
8
© 2011 Konecranes. All rights reserved.
DIFFERENTIATION THROUGH SERVICE AND TECHNOLOGY INNOVATION
9
SERVICE
• Preventive approach• Five service levels• Services for lifting
equipment of every make• 3,500 well-trained
technicians in 578 locations servicing contract base of 381,000 items of equipment
TECHNOLOGY
• Increased R&D investment through the recession
• Focus on digital controls, software, automation and service enabling technologies
• High attention to safety, quality and environment
• Smart Solutions to improve customers’ productivity
MAXIMIZING THE PRODUCTIVITY OF UPTIMEMINIMIZING THE COST OF DOWNTIME
© 2011 Konecranes. All rights reserved.
GLOBAL FOOTPRINT
10
● Main production sites● Sales and service locations
Footprintexpansion
Footprintexpansion
Footprintexpansion
Footprintexpansion
© 2011 Konecranes. All rights reserved.
LEADING POSITION BOTH IN CHINA AND INDIA
11
• Access mid market segment in China• Further strengthening of manufacturing
and sourcing in China
• Cross-distribution of certain products• Enhances presence in Far East and
North America
• Development of offering in India• Adds in India to supply and sourcing
network
© 2011 Konecranes. All rights reserved.
CHANNEL STRATEGY
• Our market is fragmented and there is a large number of small crane builders out there who1) do not have their own
component technology2) who buy hoists or crane kits
from the market
>We have a dual channel strategy to maximize market coverage
12
End users
Crane builder, Dealer
Konecranes Group
“Alpha” (distribution
brands)
“Beta” (Konecranes
brand)
© 2011 Konecranes. All rights reserved.
LOOKING AHEAD
13
© 2011 Konecranes Plc. All rights reserved.
OUR NEW VISION STATEMENT
14
”We know in real time how millions of lifting devices and machine tools perform. We use this knowledge around the clock to make our customers’ operations safer and more productive.”
© 2011 Konecranes. All rights reserved.
HOW DOES IT WORK IN PRACTICE?
15
Crane usage data is collected by the Control Pro condition monitoring unit.
Information is transmitted back to Konecranes via 2G modem.
Report is delivered to you & Konecranes via Customer Portal.
Information is compiled to a report, which focuses on:
•Safety•Usage Information•Service Life
Installed on crane
TRUVIEW Connection TRUVIEW Service / TRUCARE
Konecranes service branch goes through reports and provides you with maintenance recommendations.
© 2011 Konecranes. All rights reserved.
HOW DOES REMOTE MONITORING SUPPORT CUSTOMER’S BUSINESS?
1) Increase the safety and reliability of cranes– Detect unsafe and abusive operating practices prior to an
incident occurring– Predict when a safety critical component is nearing the
end of its lifetime
2) Optimize service activities to obtain a better ROI on maintenance expenditures
3) Make informed decisions relating to modernization and overhaul of the crane
16
Analyze the Past; Prepare for the Future
© 2011 Konecranes. All rights reserved.
GROWTH ASPECTS
17
© 2011 Konecranes. All rights reserved.
COMBINATION OF ORGANIC AND ACQUISITIVE GROWTH
18
1. Our main strategy is to grow organically2. In M&A, our first priority are bolt-on acquisitions3. We also keep an open mind towards larger M&A
© 2011 Konecranes. All rights reserved.
BALANCED GROWTH BETWEEN THE BUSINESS AREAS ON THEIR OWN MERITS
19
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Service Equipment
Outsourcing of service
Bolt-on M&A
Machine ToolMaintenance
New serviceproducts
Synergies betweenbusiness areas
Footprint expansionin emerging markets
Market share gains
Multiple distributionchannels Broadened offering
© 2011 Konecranes. All rights reserved.
GLOBAL STRUCTURAL CHANGE IS CONTINUING – SHARE OF WORLD INDUSTRIAL PRODUCTION
20
North America
Europe
Asia
Source: Maddison (Historical Statistics), IMF, ETLA
© 2011 Konecranes. All rights reserved.
LONG-TERM OBJECTIVES
Profitability• 10 % operating margin over the
cycleGrowth• Vision to reach a global market
share of 30 %Capital structure• No quantitative target for the
capital structure, but the optimal long-term gearing (net debt/equity) is considered to be in the range of 50-80 %
21
© 2011 Konecranes. All rights reserved.
NOT JUST LIFTINGTHINGS, BUT ENTIRE BUSINESSES
22
Top Related