Sandvik Ab · OMXSTO:SAND
Sandvik Ab — Investor Presentation (January 2015)
23 slides from Sandvik Ab's investor presentation, Jan 29, 2015
Slide 1: Investor Presentation
INVESTOR PRESENTATION Updated 29 January 2015
Slide 2: Business Idea
BUSINESS IDEA Sandvik shall develop, manufacture and market highly processed products, that contribute to improving the productivity, profitability and safety of our customers. Operations are primarily concentrated in areas where Sandvik is – or has the potential to become – a world leader. INDEX Co
Slide 3: Our Vision: We Set the Industry Standard
OUR VISION: WE SET THE INDUSTRY STANDARD It is our guiding principle. We set the industry standard, means that we strive for nothing less than being number one.
Slide 4: Strategic Direction
STRATEGIC DIRECTION • How we will achieve our direction TRULY TECHNOLOGY EXCEPTIONAL GROWTH FLEXIBLE ORIENTED AND AGILE GLOBAL LEADER PEOPLE
Slide 5: Our Way Forward: Key Priorities by Business Area
OUR WAY FORWARD KEY PRIORITIES BY BUSINESS AREA SANDVIK SANDVIK SANDVIK SANDVIK SANDVIK MACHINING MATERIALS MINING CONSTRUCTION VENTURE SOLUTIONS TECHNOLOGY • Consolidate footprint: • Leverage from Multi-brand • Accelerate growth of • Sales efficiency and • Accelerate growth of Manufacturing model,
Slide 6: Strength Factors
SANDVIK STRENGTH FACTORS • Proven track record in premium segments • Technology leadership in product markets • High entry barriers, by vertically integrated business model • Value selling part of corporate culture • Unique product offering • Pricing power • Strong customer relations and strong mark
Slide 7: Opportunities for Our Continued Growth
OPPORTUNITIES FOR OUR CONTINUED GROWTH • Emerging markets a stronger global force • Increased wealth/demographic shift • Increased energy consumption • Industrial innovation • Shorter product life cycles at customers • Expansion possibilities beyond our premium segments 7
Slide 8: Financial Highlights Full Year 2014
FINANCIAL HIGHLIGHTS FULL YEAR 2014 MSEK Invoicing 88,821 MSEK 100 000 50% 90 000 45% 80 000 40% EBIT 10,120 MSEK, 11.4% 70 000 35% 60 000 30% ROCE 13.4% 50 000 25% 40 000 20% 30 000 15% Employees 47,318 20 000 10% 10 000 5% 0 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 9: Financial Targets Fourth Quarter 2014
FINANCIAL TARGETS FOURTH QUARTER 2014 CURRENT TARGET MANAGEMENT FOCUS • Product launches through focused R&D GROWTH 7%* 8% • Increase exposure towards high growth markets and segments • Adjust geographic footprint • Reduce Net Working Capital ROCE 13.4% 25% • Strict capital allocation (investments)
Slide 10: Invoicing by Markets and Segments
INVOICING BY MARKETS AND SEGMENTS SALES 2013 SHARE OF GROUP TOTAL CUSTOMER SEGMENTS Consumer related 3% Other 2% EUROPE ASIA Aerospace 5% 38% 19% Energy 14% NORTH AMERICA AUSTRALIA 19% 8% Mining 32% Automotive 11% AFRICA SOUTH AMERICA 9% 7% Construction 11% Engineering 22% Change (p/v) compared with
Slide 11: Business Areas
BUSINESS AREAS SANDVIK GROUP SANDVIK SANDVIK SANDVIK SANDVIK SANDVIK MINING MACHINING MATERIALS CONSTRUCTION VENTURE SOLUTIONS TECHNOLOGY Equipment, tools, service and technical Holds a clear global leadership by Industry-leading provider of high value- The world’s widest range of rock drilling, Uni
Slide 12: Sandvik Mining
SANDVIK MINING SHARE OF GROUP’S TOTAL INVOICING 2014 30% OFFERING AREAS Mechanical Underground Load Crushing Cutting Rock Tools and Hauling and screening BUSINESS CONCEPT • ”The Safest mining supplier” • Premium brand • Direct sales • Value-adding products and services Drilling Exploration Customer
Slide 13: Mining Demand Drivers, Industry Trends, Market Characteristics
INVOICING SALES DISTRIBUTION MINERAL EXPOSURE MINING DEMAND DRIVERS 2014 2014 Mining capex, metal and mineral prices and extraction levels. Diamond and Other 2% MINING INDUSTRY TRENDS Europe Mining Coals & Australia 10% North Base Systems Minerals 17% Metals • Environment, Health and Safety America
Slide 14: Sandvik Machining Solutions
SANDVIK MACHINING SHARE OF GROUP’S TOTAL INVOICING 2014 34% SOLUTIONS PRODUCT AREAS Sandvik Coromant Seco Tools Walter DormerPramet BUSINESS CONCEPT • Productivity services • World-class logistics to support JIT (Just In Time) supply Premium brands Mid-market brands • Use of a multibrand strategy •
Slide 15: Machining Solutions Demand Drivers, Metal Cutting Industry Trends
END CUSTOMER INVOICING 2014 MACHINING SOLUTIONS SEGMENTS DEMAND DRIVERS Mining 2% Australia 1% • Primary metals consumption leading to global industrial Africa/ Aero- production (automotive, aerospace, energy applications etc.) space Middle East Asia 11% 19% 1% Energy METAL CUTTING INDUSTRY TRENDS 1
Slide 16: Sandvik Materials Technology
SANDVIK MATERIALS SHARE OF GROUP’S TOTAL INVOICING 2014 17% TECHNOLOGY PRODUCT AREAS Primary Products Tube Strip, Wire and Heating Technology BUSINESS CONCEPT • Product innovation, technology leadership and close, long- term customer relationships. • The cutting-edge expertise is based on world lead
Slide 17: Materials Technology Demand Drivers, Industry Trends
END CUSTOMER INVOICING 2014 MATERIALS TECHNOLOGY SEGMENTS DEMAND DRIVERS Mining Aerospace 3% 3% Construction 4% Medical 2% Australia 5% • Energy demand and oil prices (Oil & Gas and Nuclear) Automotive • Consumer demand (razors, electronics, white goods) 7% • Automotive production Africa/ Asia Chemi
Slide 18: Sandvik Construction
SANDVIK SHARE OF GROUP’S TOTAL INVOICING 2014 10% CONSTRUCTION TARGET NICHES Breaking, Crushing Underground Surface Drill & & Screening Aggregates & Civil engineering Blast Contracting Contracting Cement Quarrying Contracting BUSINESS CONCEPT • Target core niches globally • Be Global – Act Local • P
Slide 19: Construction Demand Drivers, Industry Trends, Market Characteristics
SALES DISTRIBUTION INVOICING 2014 CONSTRUCTION DEMAND DRIVERS • Population growth Australia 5% • World economy • Urbanization Surface drill Asia Underground • Infrastructure civil engineering and blast 21% 20% contracting 20% Europe CONSTRUCTION INDUSTRY TRENDS Africa/ Middle 39% Aggregates Breaking
Slide 20: Sandvik Venture
SANDVIK VENTURE SHARE OF GROUP’S TOTAL INVOICING 2014 9% PRODUCT AREAS Varel International Wolfram Bergbau Sandvik Process Sandvik Hyperion Energy Services und Hütten Systems BUSINESS CONCEPT • Sandvik Venture creates value through profitable growth of small to mid-sized businesses of particular int
Slide 21: Venture Demand Drivers, Market Characteristics
VENTURE DEMAND DRIVERS SALES DISTRIBUTION INVOICING 2014 Consumer related Australia • Demand for productivity improvements 4% 1% Mining 11% • Increased recycling focus • Primary metals consumption leading to global industrial Aerospace 4% Engineering Africa/ Asia production (aerospace, energy applic
Slide 22: Group Executive Management
GROUP EXECUTIVE MANAGEMENT OLOF FAXANDER JESSICA ALM MATS BACKMAN PETRA EINARSSON DINGGUI GAO JONAS GUSTAVSSON President and CEO Executive Vice President and Chief Financial Officer and President of President of President of Head of Communications Executive Vice President Sandvik MaterialsTechnology
Slide 23: Sandvik.com
SANDVIK.COM 23