Sulzer Ag · SIX:SUN
Sulzer — Investor Day (October 2008)
21 slides from Sulzer's investor day presentation, Oct 20, 2008
Slide 1: Capital Market Day 2008 - Sulzer Pumps
Capital Market Day 2008 Sulzer Pumps Kim Jackson, Division President | Status October 20, 2008
Slide 2: Our business: Pumping solutions and services
Our business: Pumping solutions and services Sulzer Pumps Products and services Pumping solution provider through the development, production, and sale of centrifugal pumps (customized and configured) for both new and replacement installations Provider of customer support services, including mai
Slide 3: Financial performance H1-2008
Financial performance H1-2008 Sulzer Pumps 2008 2007 millions of CHF Jan.–Jun. Jan.–Jun. U% U% adj.1) Order intake 1 252.2 1 047.7 19.5 30.8 Sales 809.5 768.8 5.3 15.4 EBITDA 111.2 94.3 17.9 EBIT 99.1 82.4 20.3 ROS (EBIT/sales) 12.2% 10.7% — Order backlog (as of 06/30 and 12/31) 1 639.5 1 303.8 25.7
Slide 4: Sales split by market segment and by region
Sales split by market segment and by region Sulzer Pumps Sales by market segment1) Sales by region1) 8% 19% 34% 22% 12% Other 9% 15% industrial markets 27% Pulp and paper 23% Europe Power generation North America HPI (oil und gas, Latin America downstream) 2) 31% Asia, Australia Oil and gas Africa (
Slide 5: Future global operations and service network expanded organically
Future global operations and service network expanded organically Sulzer Pumps Divisional headquarters 14 manufacturing facilities 36 sales offices 60 service centers end of 2007 3 new service centers or 2 with significant expansions in 2008 +4 new potential service centers in consideration Capital
Slide 6: Future global operations expanded organically
Future global operations expanded organically Sulzer Pumps Expansion Expansion New facility Expansion Expansion Divisional headquarters 14 manufacturing facilities New facilities planned Capital Market Day 2008 | Sulzer Pumps | Slide 6
Slide 7: Market situation and outlook
Market situation and outlook Sulzer Pumps Segment Present situation Outlook 2009/10 Middle East, North America, Brazil to Oil and gas Very strong activity in oil remain active in 2009. Upstream oil (upstream) and gas and gas market expected to stay strong Strong activity to carry over to 2009. Stron
Slide 8: Industry structure
Industry structure Sulzer Pumps Estimated three year average market size for new pumps in millions of CHF Sulzer’s position: 1 Oil and gas Key competitors: Flowserve, Clyde, 2'200 (upstream) DB Union HPI Sulzer’s position: 2 (oil and gas, 1'300 Key competitors: Flowserve, Ebara, KSB, downstream) Wei
Slide 9: Major customers
Major customers Sulzer Pumps Power Segment Oil and gas/HPI generation Pulp and paper Water Global Exxon Mobil, RWE, Int'l Int'l Paper, Local water customers Chevron, BP, Power, EON, UPMK, Stora utilities, End users ConocoPhillips, Vattenfall, etc. Enso, etc. water Shell, Total, etc. ministries, etc.
Slide 10: Competitive picture
Competitive picture Sulzer Pumps Main Flow- DB Cardo/ Sulzer ITT KSB Weir Clyde Ebara Andritz competitors serve Union Scan Oil and gas (upstream) HPI (oil and gas, downstream) Power generation Pulp and paper Food, metals, fertilizer Capital Market Da
Slide 11: Research and development
Research and development Sulzer Pumps Research laboratories Hydraulics Cavitation, erosion, corrosion Mechanical design Materials processing Foundries Extensive metallurgical knowledge to develop products where special corrosion and wear resistance is required Capital Market Day 2008 | Sul
Slide 12: Innovation in solutions: AIOC Caspian Sea development
Innovation in solutions AIOC Caspian Sea development Sulzer Pumps Requirement To inject 1 million bpd of sea water Challenge The initial and final flow conditions are significantly different Answer The world's highest power injection pumps at 27 MW. Each unit driven by RB211 gas turbine engine
Slide 13: Pumps innovation – oil pipeline duties
Pumps innovation – oil pipeline duties Sulzer Pumps Requirement To pump 1.6 million bpd of crude oil across Russia Challenge The initial and final flow conditions would require different pumps or high redundancy Answer Sulzer Pumps designed two hydraulic solutions that can be placed within the
Slide 14: Major challenges in 2008—managing growth
Major challenges in 2008—managing growth Sulzer Pumps Challenge Measure Increase capability Increase individual capability Use remote resource centers Supply chain challenge Maximize internal foundry capacity Exploit new channels Capacity Maximize internal effectiveness Expand current facilities Cap
Slide 15: Midrange targets
Midrange targets Sulzer Pumps millions of CHF FY2007 H1-2008 Midrange targets Order intake 2 076.9 1 252.2 Organic sales growth Sales 1 733.8 809.5 7.0% EBITDA 224.9 111.2 EBIT 199.2 99.1 ROS (EBIT/sales) 11.5% 12.2% >12.0% Order backlog (as of 12-31/06-30) 1 303.8 1 639.5 Employees1) (as of 12-31/0
Slide 16: Areas of focus beyond 2008
Areas of focus beyond 2008 Sulzer Pumps Area Focus Develop foundations of our ERP systems business LEAN Product development Adapt factory presence Adapt footprint to future needs Add new facilities Increase scope of some locations Enhance front-end process Align process to changing needs of customer
Slide 17: Other initiatives
Other initiatives Sulzer Pumps Health, safety, and environmental performance Customer support services An example of Sulzer standards (LEAN, working environment, health and safety, etc.): Capital Market Day 2008 | Sulzer Pumps | Slide 17
Slide 18: Summary
Summary Sulzer Pumps Foundation development through Leveraging current assets i.e. LEAN Modify footprint location & competence Further investment in business processes and tools Investment to maintain lead technology position Geographic presence Continued geographic coverage to meet cu
Slide 19: Agenda
Agenda Sulzer Pumps Market overview- Innovation in solutions Divisional overview Financial statements Wrap-up Capital Market Day 2008 | Sulzer Pumps | Slide 19
Slide 20: Capital Market Day 2008
Capital Market Day 2008 Kim Jackson, Division President | Status October 20, 2008
Slide 21: Safe Harbor Statement
Sulzer Pumps THE SAFE HARBOR STATEMENT UNDER THE US PRIVATE SECURITIES LITIGATION REFORM ACT 1995 This presentation contains forward-looking statements, including but not limited to, projections of future performance of materials and products, containing risks and uncertainties. These statements are