Compressor Technique. Capital Markets Day 2006 Ronnie Leten, Business Area President

Transcript

1 Compressor Technique Capital Markets Day 2006 Ronnie Leten, Business Area President 1

2 Compressor Technique in brief Compressed Air Market Performance Compressor Technique Strategy Compressor Technique CONTENTS 2 Capital Markets Day December 4, 2006 Ronnie Leten Compressor Technique 3 Capital Markets Day December 4, 2006 Ronnie Leten Market Position World leader in compressed air products and solutions Global coverage with own resources in sales and aftermarket support Focus on dedicated customer segments Technology and cost leadership Focused R&D investments High volumes and focus on core activities Continuous introduction of new and innovative products and services Growth by strong market penetration and presence Advanced global logistics 4 Capital Markets Day December 4, 2006 Ronnie Leten 1

3 Sales and Operating Profit % Sep 06 0 Revenues, MSEK Operating margin, % 5 Capital Markets Day December 4, 2006 Ronnie Leten Our Businesses Share of Revenues Compressed Air Equipment & 59% Solutions 6 Capital Markets Day December 4, 2006 Ronnie Leten Our Businesses Aftermarket 28% Gas Compressors 6% 7 Capital Markets Day December 4, 2006 Ronnie Leten 2

4 Our Businesses Generators 7% Specialty Rental (excl. Prime) 8 Capital Markets Day December 4, 2006 Ronnie Leten Our Vision First in Mind First in Choice by offering customers best value 9 Capital Markets Day December 4, 2006 Ronnie Leten Compressor Technique in brief Compressed Air Market Performance Compressor Technique Strategy Compressor Technique CONTENTS 10 Capital Markets Day December 4, 2006 Ronnie Leten 3

5 The Compressed Air Market Equipment and Aftermarket AMERICAS EMEA FAR EAST TOTAL: ~ BSEK Capital Markets Day December 4, 2006 Ronnie Leten Trends in the Compressor Market TOTAL SOLUTION PROVIDER LIFE CYCLE COST FOCUS ON ENERGY SAVING 12 Capital Markets Day December 4, 2006 Ronnie Leten Life Cycle Cost Maintenance & Installation 10% Compressor 20% 70% Energy Savings Potential Durability / Uptime Solutions Global Support 13 Capital Markets Day December 4, 2006 Ronnie Leten 4

6 Market Electricity Prices 2004 versus GWh per year (EUR per kwh) without taxes EU EU Belgium (25 countries) (15 countries) Czech Republic Germany Spain Italy Poland Finland Sweden UK Norway 14 Capital Markets Day December 4, 2006 Ronnie Leten Technology Trends Air Compressors piston screw turbo SIZE 15 Capital Markets Day December 4, 2006 Ronnie Leten Competitors Ingersoll-Rand, USA Kaeser, Germany Hitachi, Japan Gardner-Denver, USA CompAir, UK Sullair, USA Parker Hannifin, USA + many regional / local, niche competitors 16 Capital Markets Day December 4, 2006 Ronnie Leten 5

7 Compressor Technique in brief Compressed Air Market Performance Compressor Technique Strategy Compressor Technique CONTENTS 17 Capital Markets Day December 4, 2006 Ronnie Leten Orders Received, Geographical Distribution Total YTD +29% September 2006, +28% last 3 months A Portion of BA YTD, % B Year-to-date vs previous year C 3-month value vs previous year 18 Capital Markets Day December 4, 2006 Ronnie Leten Quarterly Volume Growth and Operating Margin Q1 00 Q2 00 Q3 00 Q4 01 Q1 01 Q2 01 Q3 01 Q4 02 Q1 02 Q2 02 Q3 02 Q4 03 Q1 03 Q2 03 Q3 03 Q4 04 Q1 04 Q2 04 Q3 04 Q4 05 Q1 05 Q2 05 Q3 05 Q4 06 Q1 06 Q2 06 Q3 06 Q4 Revenue volume growth: change vs. same quarter previous year, % Quarterly operating margin, % 19 Capital Markets Day December 4, 2006 Ronnie Leten 6

8 Orders per Customer Segment Other 9% 15% Building & Construction Commercial & Public Services and Utilities 8% 4% 3% Mining Automotive Process Chemical, Food, Textile, Paper, etc. 27% 34% Manufacturing 20 Capital Markets Day December 4, 2006 Ronnie Leten Q3 Highlights Strong order growth in all markets and all major product segments Significant order growth in gas and process compressors Higher growth in Western Europe Steady positive development of aftermarket Operating profit up 31%, positive effect from volume and price New manufacturing plant for screw compressor elements in China New acquisition: Bolaite (China) 21 Capital Markets Day December 4, 2006 Ronnie Leten Compressor Technique in brief Compressed Air Market Performance Compressor Technique Strategy Compressor Technique CONTENTS 22 Capital Markets Day December 4, 2006 Ronnie Leten 7

9 Strategy Capitalize on strong market presence Develop new businesses Aftermarket Focused markets Focused segments Multi-branding Global logistics and manufacturing strategy Innovative product development Acquisitions 23 Capital Markets Day December 4, 2006 Ronnie Leten Our Business Air Compressors Focused Segments Compressed Air Treatment Aftermarket Portable Generators Specialty Rental 24 Capital Markets Day December 4, 2006 Ronnie Leten Develop New Businesses Low pressure Airnet Nitrogen 25 Capital Markets Day December 4, 2006 Ronnie Leten 8

10 The Driving Principles for Profitable Growth in the Aftermarket INCREASE THE 1 / 1 RATIO ENERGY SERVICES COMPETITIVE PARTS AND SERVICES CLIMBING THE CUSTOMER LADDER DRIVING EFFICIENCY OF OPERATIONS People Presence Process Products 26 Capital Markets Day December 4, 2006 Ronnie Leten Climbing the Customer Value Ladder Air Network services optimize Monitoring Maintenance agreements keep fit Ad-hoc maintenance Spare parts fix it 27 Capital Markets Day December 4, 2006 Ronnie Leten Focused Segments Trains CNG Marine 28 Capital Markets Day December 4, 2006 Ronnie Leten 9

11 Focused Segments Medical Air LNG Quality Air Solutions 29 Capital Markets Day December 4, 2006 Ronnie Leten Medical Air, BeaconMedaes compressors, air treatment vane, liquid ring, claw MEDICAL AIR PLANT BREATHING AIR / SURGICAL AIR VACUUM PLANT TISSUE / BODY FLUIDS / ANAESTHETIC GAS manifolds valves alarms & data systems outlets head walls trunking PIPE LINE COMPONENTS PATIENT ENVIRONMENT PRODUCTS 30 Capital Markets Day December 4, 2006 Ronnie Leten Focused Markets: USA ALASKA INDUSTRIAL FOOTPRINT Production facilities Regional offices Compressor centers WESTERN CENTRAL Distributors (top 20) EASTERN Acquisitions CONSTRUCTION FOOTPRINT Production facility Service facilities SOUTHERN Distributors (top 18) 31 Capital Markets Day December 4, 2006 Ronnie Leten 10

12 Focused Market: China Plants Atlas Copco Liutech Pneumatech Bolaite BEIJING SHENYANG Sales / service outlets Atlas Copco Liutech Pneumatech Bolaite CHENGDU CHONGQING WUXI SHANGHAI Service Center (logistics) New investments (Bolaite factory) Global sourcing GUANGZHOU 32 Capital Markets Day December 4, 2006 Ronnie Leten Liutech New Factory Inaugurated May 19, Capital Markets Day December 4, 2006 Ronnie Leten Wuxitech Inauguration on Sep 28, Capital Markets Day December 4, 2006 Ronnie Leten 11

13 Focused Market: India Strong growth Global sourcing New sales and service outlets Engineering hub Concentrating production in Pune Started production of CNG 35 Capital Markets Day December 4, 2006 Ronnie Leten Focused Market: India Ludhiana Delhi Ghaziabad Ahmedabad Baroda Mumbai Indore Nasik Pune Kolkata Pune - PC, CC & GECIA Regional offices Area offices Resident sales & aftermarket Resident aftermarket only Nasik PC Bangalore Coimbatore Hyderabad Chennai Madurai 36 Capital Markets Day December 4, 2006 Ronnie Leten Focused Market: India 37 Capital Markets Day December 4, 2006 Ronnie Leten 12

14 Multi-branding Differentiated offer / position Dedicated channels Better territory coverage Business coordinated Synergies 38 Capital Markets Day December 4, 2006 Ronnie Leten Manufacturing and Service Centers Global manufacturing strategy Global design platform strategy Global sourcing Regional Manufacturing Plants Regional Logistics Centers 39 Capital Markets Day December 4, 2006 Ronnie Leten Product Development Understanding customer applications Vitality Index Industrial Compressors < 6 years > 6 years Focus on energy efficiency Oil-free Air solutions Extending the offer Capital Markets Day December 4, 2006 Ronnie Leten 13

15 Large Air Compressor / Range extension Markets Air Separation PTA (Purified Terephtalic Acid) 41 Capital Markets Day December 4, 2006 Ronnie Leten where design, innovation and functionality meet 42 Capital Markets Day December 4, 2006 Ronnie Leten Efficiency in Processes SAP Manufacturing platform rationalization in Europe Global sourcing Regional Logistics Centers in India, China, USA and Brazil 43 Capital Markets Day December 4, 2006 Ronnie Leten 14

16 Conclusions Continuous growth Strong product development portfolio Focus on customer application Expansion in key growth areas Integration new acquisitions Investment in core component manufacturing Material price levels Currency developments 44 Capital Markets Day December 4, 2006 Ronnie Leten We are committed to your superior productivity through interaction and innovation. 45 Capital Markets Day December 4, 2006 Ronnie Leten 46 Capital Markets Day December 4, 2006 Ronnie Leten 15