Lars Josefsson President Sandvik Mining and Construction. 1 Sandvik Mining and Construction

Transcription

1 Lars Josefsson President Sandvik Mining and Construction 1 Sandvik Mining and Construction

2 Safety first SAFETY MANAGEMENT SYSTEMS WORKPLACE RISK ASSESSMENT Safety first everywhere our equipment is in use and in our own organization Our aim is to achieve zero work related injuries and illness OHSAS EHS FULLY INTEGRATED IN PRODUCT DEVELOPMENT 2 Sandvik Mining and Construction

3 Sandvik Mining and Construction Equipment, tools and services for the mining and construction industries 2007 Sales SEK 33,100 M EBIT SEK 4,979 M, 15.1% ROCE 31.2% 15,200 employees 3 Sandvik Mining and Construction

4 Financial objectives Sandvik Tooling Sandvik Mining and Construction Sandvik Materials Technology Growth 7% 9% 8% ROCE 30% 25% 20% 4 Sandvik Mining and Construction

5 Sandvik Mining and Construction Q2 Invoiced sales SEK M, Quarter EBIT- margin ROCE 12-months 50% 40% 30% Order intake +/- 0% (p/v) Excl project business, + 16% Invoiced sales + 19% (p/v) EBIT 14.0% of sales SEK 1,370 M, + 8% % Strategic expansion Currency effect SEK -180 M % ROCE 27.9% (32.2) NWC improvements % 5 Sandvik Mining and Construction

6 Making our business more efficient Building a strong platform for the future 6 Sandvik Mining and Construction

7 7 Sandvik Mining and Construction Q1-98 Q2-98 Q3-98 Q4-98 Q1-99 Q2-99 Q3-99 Q4-99 Q1-00 Q2-00 Q3-00 Q4-00 Q1-01 Q2-01 Q3-01 Q4-01 Q1-02 Q2-02 Q3-02 Q4-02 Q1-03 Q2-03 Q3-03 Q4-03 Q1-04 Q2-04 Q3-04 Q4-04 Q1-05 Q2-05 Q3-05 Q4-05 Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q Growth and a healthy margin increase EBIT INVOICING BSEK BSEK

8 Sales by region AUSTRALIA 19% EUROPE 26% ASIA 12% NAFTA 14% AFRICA & MIDDLE EAST 18% SOUTH AMERICA 11% Good market mix - More than 50% in Southern Hemisphere 8 Sandvik Mining and Construction

9 Securing the demand in supply New equipment assembly capacity being built Rapid increase of capacity in both new and existing production facilities Sourcing teams focused on addressing critical component supply The new roller factory in Schöppenstedt is one example of high productivity solutions 9 Sandvik Mining and Construction

10 Copper Lower grade More excavated material/ton ore More equipment needed Source: Raw Materials Group 10 Sandvik Mining and Construction

11 Mineral exposure COAL 26% IRON 15% DIAMOND 4% GOLD 17% BASE METALS 25% PLATINUM GRP 13% 11 Sandvik Mining and Construction

12 Opening business opportunities by closing the productivity gap Maximizing the value generation of the solution Minimizing total cost of production COST DEVELOPMENT PRODUCTIVITY GAP 2001 Source: BCG TOTAL PRODUCTIVITY Sandvik Mining and Construction

13 Opening business opportunities by closing the productivity gap Maximizing the value generation of the solution Minimizing total cost of production COST DEVELOPMENT PRODUCTIVITY GAP Source: BCG TOTAL PRODUCTIVITY 13 Sandvik Mining and Construction

14 CapEx drives OpEx we can really influence customer productivity Mobile mining equipment capex account for < 3% of total mining cost but influences 40% of the total mining cost Mobile equipment (CapEx) Labor Spare parts Tires Fuel Other Op. Exp. Overheads & Distribution 14 Sandvik Mining and Construction

15 Main trends and business drivers MARKET TECHNOLOGY CUSTOMERS Continued high demand Increased exploration activities New infrastructure investments Lack of skilled people Safety and productivity drives mechanization and automation Surface to underground From drill and blast to continuous processes Mobile and flexible units Focus on productivity Consolidation through mergers and acquisitions Globalization, search for synergies Towards solutions applications and performance contracts Sustainability is an issue 15 Sandvik Mining and Construction

16 Sandvik International Mining School Post-graduate Program for Engineers Joint project of Sandvik and University of Leoben, Austria University of New South Wales, Australia University of Witwatersrand, South Africa Technical University of Helsinki, Finland Camborne School of Mines, England Colorado School of Mines, USA 16 Sandvik Mining and Construction

17 Safety first SAFETY MANAGEMENT SYSTEMS WORKPLACE RISK ASSESSMENT Safety first everywhere our equipment is in use and in our own organization Our aim is to achieve zero work related injuries and illness OHSAS EHS FULLY INTEGRATED IN PRODUCT DEVELOPMENT 17 Sandvik Mining and Construction

18 The choice of the planet ALL MAJOR SITES CERTIFIED ACCORDING TO ISO CLEAR GOALS FOR R&D GREEN ENVIRONMENTAL RISK ASSESSMENT PRO- GRESS EDUCATION AND TRAINING PROGRAMS Mining and construction are sensitive working areas We develop new solutions that will minimize the environmental impact of the operational processes In the end we help our customers to operate in a more sustainable way 18 Sandvik Mining and Construction

19 Sustainability in Mining New methods economically viable alternative Resource efficiency Mine only what is used State-of-the-art methods required Precision Mining Automine Energy efficiency Mechanised Mining up to 40% more energy efficient than Un-Mechanized More R&D required to lower total energy consumption for mining equipment Coordination required with other initiatives 19 Sandvik Mining and Construction

20 Sandvik Mining and Construction Customer Segments UNDERGROUND HARD ROCK MINING UNDERGROUND SOFT ROCK MINING SURFACE MINING CONSTRUCTION EXPLORATION Sales by customer industries Construction UG Soft Rock Mining Aftermarket parts, tools, consumables and services Sales by product type Equipment Surface mining UG Hard Rock Mining Exploration Project sales 20 Sandvik Mining and Construction

21 Underground Hard Rock Mining Key end products Gold Iron ore Platinum Copper Nickel Diamonds Key competitors Atlas Copco Boart Longyear Caterpillar Furukawa Metso Minerals UG Hard Rock Mining 21 Sandvik Mining and Construction

22 Underground Soft Rock Mining Key end products Coal Potash Gypsum Salt Key competitors DBT Eickhoff Joy Global Kennametal Oldenburg Underground Soft Rock Mining 22 Sandvik Mining and Construction

23 Surface Mining Key end products Gold Iron ore Copper Coal Key competitors Atlas Copco Bycyrus Joy Global Krupp Metso Minerals Terex Surface Mining 23 Sandvik Mining and Construction

24 Construction Key target niches Quarrying Surface civil engineering Underground civil engineering / Tunneling Demolition & recycling Key competitors Atlas Copco Metso Minerals Terex Construction 24 Sandvik Mining and Construction

25 Exploration Key end products Gold Copper Nickel Key competitors Atlas Copco Boart Longyear Fordia Schramm Terex Halco Exploration Sandvik is the only supplier of a complete offering of tools, consumables, drill rigs and related equipment for all types of exploration. 25 Sandvik Mining and Construction

26 Solid base for the future People Safety and Environment Successful re-organization Strategic sourcing Capacity expansion Focus in Asia Widest product offering Focus on strategic acquisitions Continuous improvements 26 Sandvik Mining and Construction

27 We are a winning team 27 Sandvik Mining and Construction

28 Sandvik Mining and Construction 28

29 Cautionary Statement Some statements herein are forward-looking and the actual outcome could be materially different. In addition to the factors explicitly commented upon, the actual outcome could be materially effected by other factors like for example, the effect of economic conditions, exchange-rate and interest-rate movements, political risks, impact of competing products and their pricing, product development, commercialisation and technological difficulties, supply disturbances, and the major customer credit losses. 29 Sandvik Mining and Construction