Burckhardt Compression Holding Ag · SIX:BCHN
Burckhardt Compression — Investor Day (January 2018)
102 slides from Burckhardt Compression's investor day presentation, Jan 9, 2018
Slide 1: Welcome to the Second Investor Day at Burckhardt Compression
WELCOME TO THE SECOND INVESTOR DAY AT BURCKHARDT COMPRESSION January 9, 2018 Marcel Pawlicek CEO
Slide 2: Program
Investor Day Jan. 9, 2018 at Burckhardt Compression Program What Who Page Welcome M. Pawlicek, CEO Chairman’s Note V. Vogt, Chairman 3 Megatrends, Markets, Way forward Mid-Range Plan 2018 – 2022 M. Pawlicek, CEO 7 Systems Division, Way forward Mid-Range Plan 2018 – 2022 F. Billard, President Sys
Slide 3: Chairman's Note
CHAIRMAN’S NOTE Valentin Vogt Chairman of the Board of Directors Investor Day January 9, 2018 Page 3
Slide 4: Six Fundamental Changes within the Last 3 Years
Six Fundamental Changes within the Last 3 Years Acquisition of Broadening of Shenyang the product Downturn in Yuanda Built new Opened new portfolio to UO&G and the Compressor assembly Creation of the service centers move from a Marine (SYCC) and shops in Korea two divisions with partners, niche play
Slide 5: Global Presence, Closeness to the Customer
Global Presence, Closeness to the Customer Our 2022 plan: Invest in sustainable growth for Burckhardt Compression, based on broad experience in gas compression challenge and driven by strengthened global capabilities plus one strong brand Trends… Focus… Results… Sustainable, Key markets reached bott
Slide 6: Seven Good Reasons to Invest in Burckhardt Compression
Seven Good Reasons to Invest in Burckhardt Compression Global presence and Divisional setup: closeness to the customer • Economic stability in cyclical market conditions • Agility on the respective markets Attractive markets with predictable long-term growth potential One strong brand Broad experien
Slide 7: Megatrends
MEGATRENDS Marcel Pawlicek CEO Investor Day January 9, 2018 Page 7
Slide 8: Megatrends and Market Developments Impacting Our Business
Megatrends and Market Developments Impacting Our Business Energy Megatrends are In the short to mid-term, Many potential emerging supporting our markets in the challenges remain applications influenced by long-run technology, economics and Oil price is expected to remain Despite strong energy sa
Slide 9: Why Is the Demand for Energy Increasing?
Why Is the Demand for Energy Increasing? • Because of resource scarcity and growing population • Changing production processes • Recycling of resources • Waste water and sea water treatment • Increasing demand for energy for • IT infrastructure • Transportation • Fertilizer production • etc. • Physi
Slide 10: Energy Megatrends Are Supporting Our Markets in the Long-Run
Energy Megatrends Are Supporting Our Markets in the Long-Run (5 – 20 Years) Energy consumption Shares of primary energy Source: Exxon Energy Outlook 2017 Source: Exxon Energy Outlook 2017 • Efficiency improvement will disconnect energy • Energy mix shift towards natural gas demand growth from World
Slide 11: Demographic Megatrends Are Supporting Our Markets in the Long-Run
Also Demographic Megatrends Are Supporting Our Markets in the Long-Run (5 – 20 Years) Plastic consumption per capita with significant growth potential in China and India (expected growth of 3 - 4% p.a.) Average Annual Growth Rate 2015 – 2022 (%/year) Source: ICIS Supply and Demand Database Investor
Slide 12: Markets
MARKETS Marcel Pawlicek CEO Investor Day January 9, 2018 Page 12
Slide 13: We Are Active in All Market Segments
We Are Active in All Market Segments Upstream Gas Transport Oil & Gas and Storage Petro- Refinery chemical/ Chemical Industry Industrial Gas Investor Day January 9, 2018 Page 13
Slide 14: A Broad Product and Service Portfolio
A Broad Product and Service Portfolio Keep #1 market position Increase market share BC Products SYCC Laby® Laby®-GI Hyper Process Gas Standard Components Compressors Compressors Market Compressors Compressors High Pressure and Service API 618 Compressors Upstream Oil & Gas (UO&G) Gas Trans
Slide 15: Recip Market Outlook: 2016-2017 Expected to Be the Bottom of the Cycle
Recip Market Outlook 2016 – 2017 Expected to Be the Bottom of the Cycle Global Recip Market by segment Oil price reduction impacted CHF mn (excl. High-Speed) CAPEX in UO&G, REF and PCI 1600 in 2015-16 1400 A partially speculative LNGM market collapsed in 2016-17 1200 Market recovery in 2018-19
Slide 16: Recip Market Outlook: China Expected to Remain Largest Market
Recip Market Outlook China Expected to Remain Largest Market Global Recip Market by Region China represents almost 40% CHF mn (excl. High-Speed) of the global market 1600 North-East Asia (incl. Marine) will remain #2, expected to 1400 recover 2018 – 2020 1200 Middle-East #3 1000 India (REF)
Slide 17: Upstream Oil & Gas Recovery Is Expected to Continue
Upstream Oil & Gas Recovery Is Expected to Continue Market Size 2014 – 2022 Market Drivers & Trends CHF mn (excl. High-Speed) 180 US political support for domestic gas production 160 Productivity improvements in Enhanced Oil 140 Recovery (EOR) 120 Changing energy mix leads to a globally 100 increasi
Slide 18: Gas Transport & Storage: Ship Transport Expected to Strongly Recover
Gas Transport & Storage Ship Transport Expected to Strongly Recover Market Size 2014 – 2022 Market Drivers and Trends CHF mn Changing global energy mix towards gas 350 PCI feedstock changing to low-cost 300 LPG/LEG (e.g. from the US) 250 Many additional LNG import terminals under construction in sev
Slide 19: Refinery: Asia and New Regulations Boosting New Projects
Refinery Asia and New Regulations are Temporarily Boosting New Projects Market Size 2014 – 2022 Market Drivers and Trends CHF mn 500 Large projects in Asia 450 A shake-out process of older/less efficient technologies triggers new equipment or 400 replacement of existing 350 Oil price and refiners’ m
Slide 20: Petrochemical / Chemical Industry: China Is and Will Remain a Key Market
Petrochemical- / Chemical Industry China Is and Will Remain a Key Market Market Size 2014 – 2022 Market Drivers and Trends CHF mn 450 Annual ~2% demand growth for plastics based on increased world population & 400 middle class growth in India and China 350 China to increase PCI capacities to cover 3
Slide 21: Industrial Gas: The Demand Will Recover
Industrial Gas The Demand Will Recover Market Size 2014 – 2022 Market Drivers and Trends CHF mn World population growth leads to increasing 160 demand for industrial gases (e.g. medical, 140 food & beverage, fertilizer (CO2), inert gas) 120 Hydrogen to be used as fuel (busses, cars, trains, fuel cel
Slide 22: The Recip Service Market Size is about CHF 2.7 bn p.a.
The Recip Service Market Size is about CHF 2.7 bn p.a. or 72’000 Compressors North America EMEA 2.7 bn Total market (CHF/p.a.) 0.5 bn CHF 1.0 bn CHF Est. potential/p.a. 16’000 Est. potential/p.a. 24’000 compressors compressors 7.6% Market share LATAM APAC (80% is BC business) § 0.2 bn CHF 1.0 bn CHF
Slide 23: Market Summary: Bottom of the Cycle Reached
Market Summary Bottom of the Cycle Reached USA, Middle- Mid to long-term Both UO&G and Plastic and East, Australia, gas Marine cycles industrial gases and Russia are consumption Overall market have (almost) consumption expected to and trade will will recover reached bottom expected to account for in
Slide 24: Way Forward MRP 2018 – 2022
WAY FORWARD MRP 2018 – 2022 Marcel Pawlicek CEO Investor Day January 9, 2018 Page 24
Slide 25: Burckhardt Compression at the IPO 2006
Burckhardt Compression at the IPO 2006 Investor Day January 9, 2018 Page 25
Slide 26: ...and Today
…and Today A Network of Qualified Employees Around the World Investor Day January 9, 2018 Page 26
Slide 27: Our Vision
Our Vision Customers at The Core of Our Business "We are customers' first choice for gas compression solutions across the entire product life cycle." Investor Day January 9, 2018 Page 27
Slide 28: Way Forward BC Group 2022
Way Forward BC Group 2022 Investor Day January 9, 2018 Page 28
Slide 29: Way Forward, BC Group Targets 2022
Way Forward, BC Group Targets 2022 (SERV incl. Arkos) Systems Division • Sales CHF 340 mn BC Group • Keep leading market position in all segments • Sales CHF 700 mn • Use strong global presence and • Keep leading market position in Shenyang Yuanda Compressor Systems Division • Focus on operational e
Slide 30: Our Key Capabilities for Success Lie in Differentiation
Our Key Capabilities for Success Lie in Differentiation Anticipating & solving Field Service challenges together with Representative (FSR) as customers pro-active caretaker Systems Division Services Division Technical competence for the most demanding Offer and realize applications engineering solut
Slide 31: Systems Division: Way Forward MRP 2018 – 2022
SYSTEMS DIVISION WAY FORWARD MRP 2018 – 2022 Fabrice Billard President Systems Division Investor Day January 9, 2018 Page 31
Slide 32: Systems Division Way Forward – Targets
Systems Division Way Forward – Targets Systems Division • Sales CHF 340 mn • Keep leading market position in all segments • Use strong global presence and Shenyang Yuanda Compressor • Focus on operational excellence • EBIT Margin of 0 - 5% Investor Day January 9, 2018 Page 32
Slide 33: Systems Division: Short-Term Challenges but Strong Basis for the Future
Systems Division Short-Term Challenges but Strong Basis for the Future First half-year not good but as expected We have strategically well-located • Profitability currently negative: Down- factories and a strong product line for cycle + learning curve LNGM the future • Good progress on improvement p
Slide 34: Systems Division – Outlook
Systems Division – Outlook Keep Leading Market Position and Improve Margin Market strategy to maintain leading Focus on operational excellence position • 5 key improvement projects with focus • Markets are expected to pick-up in on operational excellence 2018 - 2019, esp. Marine • Reduced already FT
Slide 35: Systems Division – Our Mission
Systems Division – Our Mission The Optimal Gas Compression Solution for Each Customer Achieve #1 market position in key reciprocating compressor applications Live our success factors, especially “Think Customer", “Break Barriers” and “Take Ownership” Use our global footprint to be close to customers
Slide 36: Systems Division: Eight Key Capabilities for Success
Systems Division Eight Key Capabilities for Success Differentiating capabilities to “win the game” Required capabilities to “play the game” Providing robust & Anticipating & solving proven “Fit-for- challenges together with purpose” products customers Technical Strong Q-System to competence for the
Slide 37: Systems Division: Strategic Directions Mid-Range Plan 2018 – 2022
Systems Division Strategic Directions Mid-Range Plan 2018 – 2022 • Strengthen customer care Defend position in • Reduce Laby®-GI costs Marine market • Develop new solutions • Key account management for selected licensors, EPCs, National and Build on leading International Oil Companies Market positio
Slide 38: Systems Division: Top 5 Initiatives
Systems Division Top 5 Initiatives to Implement the Strategic Directions Boost global Launch M-Line Push value Expand Global Develop new procurement (SYCC product engineering Support Center solutions for outside China) in Pune Marine Defend position in Marine market Build on leading position in PCI
Slide 39: Systems Division – Key Initiative: Value Engineering
Systems Division – Key Initiative Value Engineering Understanding the cost influencers Voice of the customer Brainstorming 20+% cost reduction possible on selected product line Cross-functional international teams, incl. suppliers Investor Day January 9, 2018 Page 39
Slide 40: Systems Division – Key Initiative: Global Support Center Pune
Systems Division – Key Initiative Global Support Center (GSC) in Pune, Opening Aug. 2017 Investor Day January 9, 2018 Page 40
Slide 41: Systems Division – Key Initiative: M-Line Launch
Systems Division – Key Initiative M-Line Launch as a Second Product Line in API 618 Market Outside China B- Line Value engineering & new refinery compressor BC compressor M-Line = SYCC M-Line business development compressor with BC and promotion at new customers project management, assembly and test
Slide 42: Systems Division – Top Initiatives: Next 12 Months
Systems Division – Top 5 Initiatives Concrete Improvements over the Next 12 Months Initiative Expected status • Global strategic procurement team in place, incl. members in India and China Procurement boost • Category strategies defined and implementation started for top 5 categories • Number of sup
Slide 43: Systems Division Summary
Systems Division Summary Market outlook Total market expected to grow in 2018 – 2019, then stabilizes LDPE (Hyper Compressor) expected to recover in 2017 – 2019, because of rise in plastics consumption in China and SEA Ongoing strong refinery market and recovery in industrial gas Marine se
Slide 44: Services Division: Way Forward MRP 2018 – 2022
SERVICES DIVISION WAY FORWARD MRP 2018 – 2022 Martin Wendel President Services Division Investor Day January 9, 2018 Page 44
Slide 45: Services Division Way Forward – Targets
Services Division (incl. Arkos) Way Forward – Targets Services Division • Sales CHF 360 mn • Grow 6 - 8% per year • Organic growth on BC and OBC business • Further growth through acquisitions (OBC) • EBIT Margin of 20 - 25% Investor Day January 9, 2018 Page 45
Slide 46: Our Offering – Service, Expertise, Hands-on
Services Division Our Offering – Service, Expertise, Hands-on Our Service Products Customer Service Cases • Wear and capital parts Preventive maintenance • Field service Corrective maintenance • Component repair in BC Service Center • Technical support & troubleshooting Overhaul & repair • Eng
Slide 47: Services Division: Strong OEM Image and Potential to Grow
Services Division Strong OEM Image and Potential to Grow First half-year according to expectation, We have a strong growth potential in full year on track the OBC business for the future • Strong sales • Today, BC’s market share in OBC is • Lower gross profit margin due to changed limited product mi
Slide 48: Services Division – Outlook
Services Division – Outlook Become a Leading Service Provider and Hold Margin Further grow order intake and sales Develop service organization by 6 - 8% per year • 5 key initiatives to support growth, • Enlarge our market share in the OBC streamline global processes and develop service market, moder
Slide 49: Services Division – Our Mission
Services Division – Our Mission We Create Customer Convenience and Trust Our values and behaviors are our DNA for collaboration internal and with Customer see us globally as service customers and partners provider in all our market segments with OEM know-how and engineering skills Set up global proc
Slide 50: Services Division: Ten Key Capabilities for Success
Services Division Ten Key Capabilities for Success Differentiating capabilities to “win the game” Required capabilities to “play the game” Professional FSR assignments FSR as Sales consulting pro-active caretaker (technical and commercial) Fast & reliable supply Offer and realize of spare parts SERV
Slide 51: Services Division: Strategic Directions Mid-Range Plan 2018 – 2022
Services Division Strategic Directions Mid-Range Plan 2018 – 2022 Enhance differentiating capabilities Focus on improvement of our differentiating capabilities Improve speed to market Implement global processes and systems as ERP/CRM Think customer, act Improve internal customer orientation and ther
Slide 52: Services Division: Top 5 Initiatives
Services Division Top 5 Initiatives to Implement the Strategic Directions Global Global service Professional Global Marine ERP/CRM setup customer care engineering & service platform project management Enhance differentiating capabilities Improve speed to market Think customer, act service Develop se
Slide 53: Key Initiative: Revamp of BC Hyper Compressor in LDPE Plant
Services Division – Key Initiative Global Engineering and Project Management Revamp of BC Hyper Compressor in LDPE plant Maximize plant capacity, approx. +50% Customer Benefits Increase mass flow from 46t/h to 63t/h • Increased reliability • Lower lifecycle costs • Environmental improvements in Reva
Slide 54: Key Initiative: Revamp of Hydrogen Gas Compression System
Services Division – Key Initiative Global Engineering and Project Management Revamp of a hydrogen gas compression system of Ingersoll Rand Customer Benefits Tightened Health, Safety & • Leakage rate down to zero Environment • Complete compressor revamp regulation with latest technology and API 618 c
Slide 55: Services Division – Top Initiatives: Next 12 Months
Services Division – Top 5 Initiatives Concrete Improvements over the Next 12 Months Initiative Expected status • Global Template finalized Build up global ERP/CRM • First roll-out in Germany executed • Global roll-out scheduled Further develop the global • New agent concept / agreements rolled out •
Slide 56: Sales Target – Strong Growth with OBC
Services Division Sales Target – Strong Growth with OBC Sales CHF mn 400 Target of 11% CAGR on reported sales 2016 – 2022 350 Sales excl. Arkos to grow by 300 6% CAGR 250 * Both BC and OBC driven mostly by 200 engineering and project 150 management, field service and long term service contract
Slide 57: Workshop Tour
WORKSHOP TOUR Moritz Hochlehnert Head of Assembly Investor Day January 9, 2018 Page 57
Slide 58: Workshop Tour – Positions
Workshop Tour – Positions Position What Who 1 US Market (BCUS and Arkos) Mike O’Neil, Danny Cannon 2 Service Engineering Sabine Gams, Samuel Rimann 3 China, SYCC (M-Line) Xiwen Ren, Keven Li, Paolo Collaro 4 India, BCIN, GSC Milind Wagle, Jochen Ehmer 5 Service Setup (Global, Regional, Local) Jiri R
Slide 59: Financials
FINANCIALS Rolf Braendli CFO Investor Day January 9, 2018 Page 59
Slide 60: Sales and EBIT Targets BC Group
Sales and EBIT Targets BC Group FY 2016 (Actual) FY 2022 (MRP) SALES (CHF mn) EBIT (CHF mn) SGA: 15 – 17% of sales (FY 2016: 14%) CAGR 4% 700 • Over-proportional growth in Services, including Arkos 558 • Stable SGA in SYST • Lean Corporate Structure (CHF 4 – 5 mn, including income from real estate
Slide 61: Sales and EBIT Targets Systems Division
Sales and EBIT Targets Systems Division FY 2016 (Actual) FY 2022 (MRP) SALES (CHF mn) EBIT (CHF mn) Sales: • Keep leading market position 367 • Backlog decreases FY 2016 – FY 2018 340 • Global launch of selected SYCC products CAGR -1% EBIT-Margin: 0 – 5% (FY 2016: 0%) • Cost reductions from: • Pro
Slide 62: Sales and EBIT Targets Services Division
Sales and EBIT Targets Services Division FY 2016 (Actual) FY 2022 (MRP) SALES (CHF mn) EBIT (CHF mn) Sales: • Moderate growth of spare parts sales 360 on installed BC compressor base CAGR 11%* • Further growth in: • OBC • SYCC service business in China 191 • Engineering services and project manage
Slide 63: Balance Sheet BC Group – Assets
Balance Sheet BC Group – Assets FY 2016 (Actual) FY 2022 (MRP) Assets Stable level of current assets and net CHF mn working capital 900 • Normalization of (overdue) accounts 800 receivables, mainly in China 700 • Improvement of currently negative balance of project financing 600 500 Stable level o
Slide 64: Balance Sheet BC Group – Equity & Liabilities
Balance Sheet BC Group – Equity & Liabilities FY 2016 (Actual) FY 2022 (MRP) Equity & Liabilities Moderate increase of balance sheet total CHF mn by 5% 900 45% • Including full consolidation of Arkos 800 44% (net impact CHF ~40 mn) • Repayment of bank loans considered, 700 43% except for some mort
Slide 65: M&A Considerations: Planned Execution of Call Options SYCC & Arkos
M&A Considerations Planned Execution of Call Options SYCC & Arkos Call and put option structure in Shenyang place, based on a pre-agreed Yuanda 60% 100% EBITDA multiple Compressor Call option executable from FY 2020 onwards Call and put option structure in place, based on a pre-agreed Arkos 40
Slide 66: M&A Considerations: Other Acquisitions
M&A Considerations Other Acquisitions Systems Services Broad access to potential financing sources would be available if necessary Acquisitions other than the Add-on acquisitions remaining 40% SYCC are continue to be part of the not part of the strategic OBC strategy but are not Cash direction
Slide 67: RONOA Implementation
RONOA (Return on Net Operating Assets) Implementation Burckhardt Compression will introduce RONOA as a KPI in the course of the MRP. • Optimization of NOA • Break-down of assets by category and Division (Systems and Services)* • Target setting and performance management • Enhanced NWC cockpit • Inte
Slide 68: External Boundary Conditions / Assumptions to the Mid-Range Plan
External Boundary Conditions / Assumptions to the Mid-Range Plan 2018 – 2022 Oil price within a No new sanctions, No major change range of USD nor the lifting of in global political 40 - 60 per barrel existing ones environment Gas price within a No major change range of USD 3 - 5 in interest rates p
Slide 69: Financial Targets FY 2017: Guidance Confirmed
Financial Targets FY 2017 Guidance Confirmed Guidance FY 2017 Order Intake • No upturn in the Systems Division order intake expected until FY 2018 at the earliest • Continued growth in the Services Division Sales • At prior year level Gross Margin • Systems Division 8 - 10% • Services Division 45 -
Slide 70: Human Resources
HUMAN RESOURCES Sandra Pitt CHRO Investor Day January 9, 2018 Page 70
Slide 71: Rapid Globalization Over the Last 15 Years
Rapid Globalization Over the Last 15 Years 2002 (MBO) 2017 400 employees approx. 2’300 employees 3/4 in Switzerland 1/3 in Switzerland Investor Day January 9, 2018 Page 71
Slide 72: Our Goal: Encourage our Employees to Enhance Their Potential
Our Goal Encourage our Employees to Enhance Their Potential 1 Leadership Training One Voice Leadership training based on the Values and Behaviors of Burckhardt Compression Level 1-4 Internal Management 2 Development Program Local Training (IMDP) 5 English, Project Management, Customer Training, Lean
Slide 73: One Voice – We Are Ready to Change!
One Voice – We Are Ready to Change! One Voice: We all speak the same language! • Global leadership training for all leaders • Focus – Leading change & integration of Values and Behaviors of BC • Mix of divisions, regions, subsidiaries • Strong involvement of Executive Board • Start in summer 2017 –
Slide 74: IMDP – Promote Talents and Generate Value!
IMDP – Promote Talents and Generate Value! IMDP: Prepare the new generation of leaders • Global program of 18 months • 15 nominated participants from base & middle management • Mix of divisions, regions, subsidiaries • Members of top management act as mentors We will rock it in 2018! Strong link to
Slide 75: Short-Term Incentive BC Group
Short-Term Incentive BC Group Participation in the Financial Success Global incentive program with the aim of participation in financial success Threshold and cap The percentage is purchasing power adjusted per country Participants are managers and experts Each Global Grade is eligible for a percent
Slide 76: Short-Term Incentive BC Group: Participation in the Financial Success
Short-Term Incentive BC Group Participation in the Financial Success In addition, a quantitative factor on both group and divisional level is applied: Group Factor RONOA (GF): 0.5x – 1.5x Divisional Factor EBIT (DF): 0.5x – 1.5x Percentage of net income Group net Actual STI = X X DF or GF (dep
Slide 77: Long-Term Incentive BC Group
Long-Term Incentive BC Group Part of Senior Management Compensation Global incentive program with the aim of Senior Management retention The LTI amount is purchasing power adjusted per country Threshold and cap Participants are Each Global Grade is eligible Senior Management for a target LTI amount
Slide 78: Long-Term Incentive BC Group
Long-Term Incentive BC Group Part of Senior Management Compensation Investor Day January 9, 2018 Page 78
Slide 79: Marine Applications: Boil-Off Gas (BOG) Management
MARINE APPLICATIONS BOIL-OFF GAS (BOG) MANAGEMENT SYSTEMS DIVISION Daniel Grötzinger Segment Manager Gas Transport ＆ Storage Investor Day January 9, 2018 Page 79
Slide 80: Marine BOG Management Compressors on Large LNG Carriers – A Success Story
Marine BOG Management Compressors on Large LNG Carriers A Success Story Feb. 2013: 1st order for a Laby®-GI used as fuel gas compressor on a dual fueled 174’000 m3 LNG Carrier Since 2013, total 44 LNG carriers with MAN ME-GI engines and Laby®-GI compressors have been ordered Until Dec. 2017,
Slide 81: Marine BOG Management Compressors Market Drivers
Marine BOG Management Compressors Market Drivers LNG carriers More LNG carriers will be required to cover the increasing LNG trade Small LNG carriers and bunker vessels are becoming an additional market Merchant shipping New environment regulation will be in place by 2020 IMO MARPOL Annex IV
Slide 82: Overview of Marine Propulsion Alternatives
Overview of Marine Propulsion Alternatives LPG and LNG Likely to Be the Most Competitive Post 2020 Marine Advantages Disadvantages fuel solutions Low sulfur MGO • No additional CAPEX needed • High fuel costs (OPEX) (0.5%) High sulfur HFO • Existing FGSS remains, additional • Additional space for scr
Slide 83: Different Types of LNG Fueled Ships Are Entering the Market
Different Types of LNG Fueled Ships Are Entering the Market Investor Day January 9, 2018 Page 83
Slide 84: BC Can Deliver Optimal Compression Solutions for all Marine BOG Applications
BC Can Deliver Optimal Compression Solutions for all Marine BOG Management Applications Burckhardt Compression is market leader in boil-off gas (BOG) management compressor solutions We offer a portfolio of compressor solutions for all types of vessels Laby® 8 – Laby®-GI Marine High and Low 20 ba
Slide 85: Gas Carriers: Our Traditional Markets
Gas Carriers Our Traditional Markets LPG Carriers (since 1970) Order book 11/2017: 75 New vessel orders 2017: 19 Market size for fuel gas BOG management compressors per year: CHF 20 – 30 mn Large LNG Carriers (since 2013) Order book 11/2017: 110 New vessel orders 2017: 13 Market size
Slide 86: BC with First References with Bunker Vessels and Small LNG Carriers
BC with First References with Bunker Vessels and Small LNG Carriers LNG bunker vessels/small LNG carriers Order book 11/2017: 9 New vessel orders 2017: 4 New projects for BC in 2017 1x 7’500 m3 LNG bunker vessel (2x Marine High-Pressure Compressor) 2x 7’500 m3 small LNG carrier (2x Laby®
Slide 87: Merchant Shipping as a Developing Market
Merchant Shipping as a Developing Market First projects under discussion with yards and owners USP’s of Burckhardt Compression Laby® compressors Cold gas capable compressor No gas pre-heating needed Oil-free, no contamination of down stream equipment with oil No oil filtration needed G
Slide 88: Assembly and Test Location Busan, Korea
Assembly and Test Location Busan, Korea Inaugurated November 2015 for the Marine Market Busan, Korea Number of employees: 25 Workshop area: 2’000 m2 Local content, assembly, test and packaging for local market Focus Marine market close to the top Korean shipyards Investor Day January 9, 2018 Page
Slide 89: Marine Service «Total Care»
MARINE SERVICE «TOTAL CARE» SERVICES DIVISION René Brunner Manager Business Development Marine Investor Day January 9, 2018 Page 89
Slide 90: What Burckhardt Compression Offers
What Burckhardt Compression Offers Dry dock realization for entire HiCom Skid (2.5 and 5 year dock) Condition monitoring and shut down prevention by Prognost 24/7/365 Emergency Hotline Spare part holding at Burckhardt Compression Global field service organization Hot spot service Train
Slide 91: Laby-GI and Laby Compressors
Laby®-GI and Laby® Compressors Laby®-GI (LNG application) Laby® (LPG application) Investor Day January 9, 2018 Page 91
Slide 92: Today's Service Experience with LNG
Today’s Service Experience with LNG 9 ships with a total of 11 compressor systems in full operation 4 ships with 4 compressor systems have completed gas trial More than 50’000 operating hours recorded Compressor systems more than 80% operational (average) expected annual operating hours: 7
Slide 93: Service Center Setup to Support Marine Business
Service Center Setup to Support Marine Business Neuss, DE 24-7 available Bicester, GB Winterthur, CH Edmonton, CA Paris, FR Busan, KR Toronto, CA Teheran, IR Tokyo, JP Madrid, ES Houston, US Shanghai, CN Istanbul, TR Dubai, AE Singapore, SG São Paulo, BR Sunnyrock, ZA Kolkata, IN Sydney, AU Service
Slide 94: Prognost MT System Architecture Ready to Go
Prognost MT (Marine Technology) System Architecture Ready to Go Remote Ship onshore Management Diagnostic Office (BCAG) Chief Engineer (Bridge) ONSHORE Laby®-GI LNG VESSEL Performance & Condition Cross-head (p-V diagram) vibration Investor Day January 9, 2018 Page 94
Slide 95: Early Failure Detection of Loose Piston Rod-Crosshead Connection
Early Failure Detection of Loose Piston Rod-Crosshead Connection Online crosshead plot Waterfall trend Amplitude TDC BDC Crank angle Time TDC Investor Day January 9, 2018 Page 95
Slide 96: Monthly Machine Condition Reports
Monthly Machine Condition Reports Remote access Compressor health analysis Feedback to crew “Safe next sail” CMC – Compressor Monitoring Concept Investor Day January 9, 2018 Page 96
Slide 97: BC Equity Story
BC EQUITY STORY Marcel Pawlicek CEO Investor Day January 9, 2018 Page 97
Slide 98: BC Is Well-Positioned in Attractive Markets
BC Is Well-Positioned in Attractive Markets 2016 – 2017 Expected to Be the Bottom of the Cycle Attractive market The overall industry has reached bottom and starts recovering Chemicals, petrochemicals and industrial Well-positioned in major growth markets gases consumption expected to grow Chi
Slide 99: Key Capabilities for Success
Key Capabilities for Success Differentiating Capabilities to Win the Game Anticipating & solving Field Service challenges together with Representative (FSR) as customers pro-active caretaker Systems Division Services Division Technical competence for the most demanding Offer and realize applications
Slide 100: Two Divisions – One Company
Two Divisions – One Company One strong Product life brand cycle competence Economic Large installed stability in base and cyclical market references conditions Global foot- print, local Broad presence offerings shared locations OEM competences, recognition one stop shop 1+1=3 and reputation Inve
Slide 101: Seven Good Reasons to Invest
Seven Good Reasons to Invest Global presence and Divisional setup: closeness to the customer • Economic stability in cyclical market conditions • Agility on the respective markets Attractive markets with predictable long-term growth potential One strong brand Broad experience in any gas compression
Slide 102: Burckhardt Compression – Compressors for a Lifetime
&, Burckhardt y Compression Compressors for a Lifetime”