Landis+gyr Group Ag · SIX:LAND
Landis+gyr — Investor Day (January 2019)
9 slides from Landis+gyr's investor day presentation, Jan 29, 2019
Slide 1: Supply Chain & Operations
Supply Chain & Operations Bodo Zeug, EVP SCM © Landis+Gyr | January 29, 2019 | Capital Markets Day 1
Slide 2: Landis+Gyr supply chain & operations setup
Landis+Gyr supply chain & operations setup Global supply chain footprint Supply chain & operations ▪ Supply chain – inbound and outbound, planning and forecasting UK Poland ▪ Manufacturing – in-house and Germany Romania outsourcing France Greece China ▪ Procurement – supplier selection India Vietnam
Slide 3: Asset light strategy is geared to optimize cost, cash and performance
Asset light strategy is geared to optimize cost, cash and performance How to optimize Guiding principles ▪ Move to best cost countries and leverage labor arbitrage ▪ Move to best cost countries along ▪ Leverage purchasing power of top Tier 1 suppliers with our Tier 1 suppliers (e.g. Cost ▪ Keep stra
Slide 4: Flexible, modular and robust supply chain enables outsourcing at any stage of the production flow
We have a flexible, modular and robust supply chain which enables outsourcing at any stage of the production flow 1 2 3 4 Calibration & Customization Mechanical Parts PCBA (electronics) Meter assembly “box build” Sealing & Packaging 1 2 ▪ Landis+Gyr customized ▪ Landis+Gyr design and test ▪ Assembly
Slide 5: We leverage the cost structure and purchasing power of our Tier 1 EMS partners
We leverage the cost structure and purchasing power of our Tier 1 EMS partners Tier 2 EMS Tier 1 EMS Landis+Gyr Customers Final Products We ship directly from EMS to certain customers Outsourcing increases in line with asset-light strategy Standard PCBA Final Components Assembly Products Low cost ma
Slide 6: Measures to minimize the impact of the industry-wide components shortage
We have implemented measures to minimize the impact of the industry-wide components shortage for Landis+Gyr Situation at Landis+Gyr Measures to secure deliveries for FY18 H2 and beyond ▪ Seller’s market: Since 2018, global electronic Leverage EMS component shortage due to high demand in ▪ Ongoing in
Slide 7: Reliable quality delivered through our Zero Defect Initiative (ZDI)
Reliable quality delivered through our Zero Defect Initiative (ZDI) Description of the initiative ▪ Ongoing, continuous improvement initiative, running over multiple years ▪ Aiming to proactively address structural and systemic quality issues and reduce associated costs ▪ Key enabler of outsourcing
Slide 8: Project Lightfoot will overachieve IPO commitment, delivering USD 25m yearly run-rate savings by FY20
Project Lightfoot will overachieve IPO commitment, delivering USD 25m yearly run-rate savings by FY20 Description of the initiative Project status Shifting to an asset light set up: Implemented ▪ Introduction of a dual source/site using existing EMS sites ▪ Transferred production of UK smart meters
Slide 9: Landis+Gyr systematically drives out product cost with a dedicated value-engineering team
Landis+Gyr systematically drives out product cost with a dedicated value-engineering team Product cost structure (typical meter) How Landis+Gyr drives product cost out Execution General overhead ▪ Should-cost analysis ▪ Cost down program for six volume 5-7% & profit (suppliers) ▪ e-tendering product