Sulzer Ag · SIX:SUN
Sulzer — Investor Day (September 2004)
25 slides from Sulzer's investor day presentation, Sep 13, 2004
Slide 1: Sulzer Metco: Surface Technology Solutions and Services
Sulzer Metco Sulzer Metco Surface Technology Solutions and Services Henri Steinmetz, Division President Capital Market Day 2004 / Henri Steinmetz / page 1
Slide 2: Our Business: Surface Technology Solutions and Services
Our Business: Surface Technology Solutions and Services Sulzer Metco Thermal spray, thin film, and related The challenge technologies Wear, corrosion, oxidation, friction, etc. Comprehensive capabilities Thermal spray and thin film integrated systems, equipment and services Thermal spray and
Slide 3: Orders Received: Split by Segment and Market Area
Orders Received Split by Segment and Market Area Sulzer Metco Orders received 2003 by segment Orders received 2003 by market area Total CHF 423 million Total CHF 423 million 1% 2% 15% 34% Speciality markets 28% 54% Automotive 20% 18% Industrial gas turbines Switzerland Europe (excl. Switzerland) 28%
Slide 4: Major Customers
Major Customers Sulzer Metco General Electric Volkswagen Pratt & Whitney Daimler Engelhard ChryslerTRW Automotive Rolls Royce ZF Friedrichshafen MTU 1st and 2nd tier automotive Siemens Westinghouse OEMs Capital Market Day 2004 / Henri Steinmetz / page 4
Slide 5: Industry Segments
Industry Segments Sulzer Metco Aerospace IGT* Automotive Specialties Airfoils, inserts, landing Airfoils, seals, vane Cylinder bores, fuel Steel rolls, paper rolls, gears, flaps, etc. clusters, rotors, etc. pumps, ball pivots, etc. plactics & tooling, oil & gas equipment Airflow control
Slide 6: Expertise in Critical Technologies
Expertise in Critical Technologies Sulzer Metco Thermal PVD Plasma Carbon New Turbine Spraying (Thin Film) Nitriding Friction Materials Components (Thin Film, Lining Innovative) (Innovative) Process Molten Vaporized Nitrogen Carbon Gold-nickel- Non- particles particles diffusion material chromium co
Slide 7: Thermal Spray Products and Services Provider
Thermal Spray Products and Services Provider Sulzer Metco Equipment Coating Coated and Materials Services Components Spare Parts Capital Consumables Service Supply Goods Contracts Contracts Capital Market Day 2004 / Henri Steinmetz / page 7
Slide 8: Proprietary Technologies
Proprietary Technologies Sulzer Metco IONIT OX® IONIT® Corrosion Protection Wear Protection Patented, proprietary diffusion technology Unique combination of plasma-nitriding, nitro-carburizing and oxidizing Potential to replace the salt-bath / chrome plating processes (CHF 750 m) Î Better cost
Slide 9: Target Industry Segments: Market Sizes and Growth Expectations
Market Sizes and Growth Expectations Sulzer Metco in million CHF Services Equipment Consumables Coatings Turbine Comp. SM Sales 2003 Aero 29% Target Industry Segments IGT 18% 300 2’000 >2’000 5’000+ 3’000 20’000+ 4%* 5%* 5%* 6%* 10%* 5%* Auto- motive 19% Specialty Markets 34% Thermal Spray & related
Slide 10: Industry Growth Drivers
Industry Growth Drivers Sulzer Metco Traditional, cyclical industries growing at average 5% p.a., e.g. thermal spray ‘New’ industries growing at 10% p.a., Cyclicality offset e.g. plasma-nitriding (thin film) by new Improve performance and reduced costs opportunities Offsetting of high raw materi
Slide 11: Market Trends
Market Trends Sulzer Metco Old New Equipment Equipment Added Value Consumables Market Market Consumables Services Services Differentiation by transitioning from products to solutions Capital Market Day 2004 / Henri Steinmetz / page 11
Slide 12: Competitive Landscape
Competitive Landscape Sulzer Metco • Progressive Tech, Inc. • GTV GmbH EQUIPMENT • PST* Sulzer Metco CONSUMABLES SERVICES • HC Starck (Bayer) • Balzers AG • Deloro Stellite plc • PST* • Höganäs AB • Tocalo Co. Ltd. • Showa Denko K.K. • Bodycote Ltd. • Engelhard * PST = Praxair Surface Technologies,
Slide 13: Growth History
Growth History Sulzer Metco CHF Millions 500 450 50% Organic growth 50% By acquisitions 400 350 300 250 200 150 100 50 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 1H 04 Capital Market Day 2004 / Henri Steinmetz / page 13
Slide 14: Sulzer Metco's Portfolio Lifecycle
Sulzer Metco’s Portfolio Lifecycle Sulzer Metco Product Portfolio as % of Total Revenue Business Volume 60% 35% 5% Embryonic Early Growth Maturity Decline Growth Lifecycle Stage Good mix of products and services Growth-driven portfolio Innovation key driver Maintenance of installed base Pa
Slide 15: Growth Strategy
Growth Strategy Sulzer Metco New geographic market penetration External Accelerated growth in ‘new’ industries growth Solid acquisition platform Differentiation through innovation Organic growth Customer satisfaction Improved productivity, faster delivery, reduced quality costs Operation
Slide 16: Financial Performance
Financial Performance Sulzer Metco Mid-term 2004 in million CHF 2001 2002 2003 targets Jan.–June Orders received 429 430 423 268.0 7–9% organic Net sales 422 465 424 255.2 growth Order backlog 93 54 54 68.2 EBITDA 59 43 43 28.7 EBITA 45 25 17 15.5 ROS (EBITA/sales) 11% 5% 4% 6.1% 11–12%
Slide 17: Sulzer Presence: Automotive Applications
Sulzer Presence: Automotive Applications (Sulzer Metco) Sulzer Metco Piston rings Valve seats/spring Cylinder bores Ball pivots Connector rods Gear selector shafts Synchronizer rings Clutch discs Shifter forks Brake discs Capital Market Day 2004 / Henri Steinmetz / page 17
Slide 18: Cylinder Bores: RotaPlasma
Cylinder Bores Sulzer Metco RotaPlasma® Sulzer Metco proprietary solution Coating of the cylinder bores from inside Elimination of cast iron sleeves Higher engine efficiency Better vehicle performance Reduction in emissions Early growth stage; major automobile manufacturers adopting the
Slide 19: Automotive Ball Pivots: IONIT OX
Automotive Ball Pivots Sulzer Metco IONIT OX® Corrosion Protection Sulzer Metco proprietary solution Reduced maintenance, higher safety and performance Average 8 ball pivots per car Aiming for 30% of all vehicles Expansion plan in China & USA Growing market due to cost, safety, vehicle per
Slide 20: Gear Selector Shafts: IONIT OX
Gear Selector Shafts Sulzer Metco IONIT OX® Corrosion Protection Sulzer Metco proprietary solution Reduction of manufacturing steps from 11 to 3 Easy and smooth gear changing 24 million manual gearboxes made per year Aiming to be preferred solution on all manual gearboxes Growing business
Slide 21: Automotive Transmission Components
Automotive Transmission Components Sulzer Metco Synchronizer Rings Shifter Forks Clutch Discs Management of component lifecycle Smooth and quick power transfer 24 million manual gearboxes made per year Strong growth due to popularity Lifecycle of Surface Technologies on Gearbox Parts of automa
Slide 22: Gold-Nickel-Graphite Materials
Gold-Nickel-Graphite Materials Sulzer Metco 1 mm Protects against electromagnetic interference Embryonic stage with global growth prospects Expansion underway in North America and Asia Utilize existing capabilities to expand into new markets Capital Market Day 2004 / Henri Steinmetz / page 22
Slide 23: Summary
Summary Sulzer Metco Growing, innovative industries and markets Differentiation through innovation and complete solutions package Value-creation through operational excellence (productivity and speed) Accelerated growth into new geographic regions and industries, through further acquisitions
Slide 24: Questions?
Sulzer Metco Questions? Capital Market Day 2004 / Henri Steinmetz / page 24
Slide 25: Safe Harbor Statement
Safe Harbor Statement Sulzer Metco 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