Sandvik Ab · OMXSTO:SAND
Sandvik Ab — Investor Day (2013)
25 slides from Sandvik Ab's investor day presentation, 2013
Slide 1: Sandvik Materials Technology Capital Markets Day 2013
Sandvik Materials Technology Capital Markets Day 2013 Petra Einarsson President Andreas Burman Vice President Finance 1
Slide 2: Safety first!
Emergency Safety first! Number “We strongly believe that Emergency all accidents can be pre- Exit vented. We continuously strive for zero accidents – and take personal Protective Equipment responsibility for safety, because we care.” Petra Einarsson President Alarm Sandvik Materials Technology Assem
Slide 3: Agenda
Agenda • Safety first! • Financial development and update • Core capabilities, mission and strategic direction • Long-term Sandvik Materials Technology • Summary 3 Sandvik Capital Markets Day 2013, Business Area Sandvik Materials Technology
Slide 4: How to reach LTIFR <1 – and when?
How to reach LTIFR <1 – and when? 16.7 >50% of all LTI’s occurred in two units 2012 16 • EHS-positions significantly increased in those units 14 Reduce by • Increased safety-related investments to be able to 12 deal with top-5-risks 9.3 10 every year Hand-injuries are the most frequent injury-type 8
Slide 5: Agenda
Agenda • Safety first! • Financial development and update • Core capabilities, mission and strategic direction • Long-term Sandvik Materials Technology • Summary 5 Sandvik Capital Markets Day 2013, Business Area Sandvik Materials Technology
Slide 6: Financial development
Sandvik Materials Technology Interim report on second quarter 2013 MSEK Financial development Q2-2013 • Order intake 2,820 MSEK • Adjusted for nuclear-order cancellation: 3,880 MSEK • Invoicing 3,967 MSEK • EBIT 496 MSEK, 12.5% of invoicing • Adjusted for metal price effects • ROCE 11% for the past
Slide 7: Step Change delivering according to plan
Step Change delivering according to plan • Step Change has delivered according to plan and has also proven to be a strong execution engine and performance management system. • So far, Step Change has contributed with an EBIT-effect of 1.3 BSEK in total (baseline 2011). • Cost savings of >0.7 BSEK •
Slide 8: Agenda
Agenda • Safety first! • Financial development and update • Core capabilities, mission and strategic direction • Long-term Sandvik Materials Technology • Summary 8 Sandvik Capital Markets Day 2013, Business Area Sandvik Materials Technology
Slide 9: Our core capabilities
Our core capabilities Leading in materials technology 1930 - 2015 • Unique expertise in advanced stainless steels and special alloys for the most demanding industries. Superalloys Nickelalloys • World-leading R&D and metallurgical know-how, combined with unique customer application Duplex steels kno
Slide 10: Our mission
Our mission How we make a difference ”We apply our unique expertise in materials technology to make industrial processes safer and more efficient, yielding greater output while consuming less resources.” 10 Sandvik Capital Markets Day 2013, Business Area Sandvik Materials Technology
Slide 11: Strategic compass
Strategic compass Our direction Make a true Step Change within safety, with the ambition to achieve a lost time injury Safety frequency rate below 1. Continue the materials evolution to be able to meet the demands of our customer’s critical applications in the most demanding industries. Materials ev
Slide 12: Agenda
Agenda • Safety first! • Financial development and update • Core capabilities, mission and strategic direction • Long-term Sandvik Materials Technology • Summary 12 Sandvik Capital Markets Day 2013, Business Area Sandvik Materials Technology
Slide 13: Well positioned for profitable growth
Growth Strategic Business Strategy cylinders direction configuration enablers Well positioned for Sandvik Materials Technology sales 2012 profitable growth General General Energy engineering engineering Energy • Demand for advanced materials is constantly increasing in attractive and fast growing se
Slide 14: Energy trends
Energy trends 2012 - 2020 Oil and gas Nuclear power Renewables Coal CAPEX/year BSEK Business opportunities 5 600 • Increased safety and life time (20-40 years) combined with tougher extraction Oil and gas conditions make SMT well positioned for growth. CAGR* 8% 630 • Major part of steam generator- a
Slide 15: Oil and gas trends
Oil and gas trends 2012 - 2020 Oil and gas CAPEX/year BSEK Business opportunities • As more devices move sub-sea, and both depth and life length increase 2 250 Off-shore with higher safety standards – the growth and the technical demands on CAGR* 11% the materials solution increase drastically. 1 25
Slide 16: Attractive growth opportunities for more advanced materials in the off-shore sector
Sandvik product offering 1. Top-side • Sandvik Attractive growth opportunities for more ClikLocTM advanced materials in the off-shore sector 11 connector • Riser tubes Carbon CRA Duplex Nickel Powder • Pipe alloys /Near-Net- • Welding products CAPEX/year Shape BSEK Material trend 11 100 Top-side CAG
Slide 17: Strategic direction
Growth Strategic Business Strategy Sandvik Materials Technology cylinders direction configuration enablers Strategic direction Share of Share of sales 2012 energy • Capitalize on strong position, especially in energy • Re-allocate R&D/investments. • Safeguard position and establish lean business mod
Slide 18: Strategic growth products
Growth Strategic Business Strategy SMT strategic direction: cylinders direction configuration enablers Strategic growth products • Exploit recent and ongoing strategic investments 2012 2016 • Strengthen Key Account Management Share of sales: ”Accelerate growth through • Increase R&D, investments and
Slide 19: Core and standard
Growth Strategic Business Strategy SMT strategic direction: cylinders direction configuration enablers Core and standard • Growth in line with GDP • Well invested footprint with a 2012 2016 challenging competitive position Share of • Wire footprint project in execution sales: ”Safeguard position and
Slide 20: Low-integrated products
Growth Strategic Business Strategy SMT strategic direction: cylinders direction configuration enablers Low-integrated products • Portfolio-alignment to drive growth and margins 2012 2016 • Three different alternatives: Share of sales: “Grow in energy and areas • Invest in growth in strategic areas (
Slide 21: Scale in Primary-system
Growth Strategic Business Strategy SMT strategic direction: cylinders direction configuration enablers Scale in Primary-system • Leading cost position in Primary- 4 Scale in system Primary- 2012 2016 system • To optimize profitability, Primary- Share of utilization and cost position must sales: “Sec
Slide 22: Strategy enablers
Growth Strategic Business Strategy SMT strategic direction: cylinders direction configuration enablers Strategy enablers • Execution engine for strategy implementation • Performance management system SMT Business System – Operational excellence • Focus areas in implementation: Safety, 5S, Standard O
Slide 23: Agenda
Agenda • Safety first! • Financial development and update • Core capabilities, mission and strategic direction • Long-term Sandvik Materials Technology • Summary 23 Sandvik Capital Markets Day 2013, Business Area Sandvik Materials Technology
Slide 24: Summary
Summary Sandvik Materials Technology • is delivering according to plan. The strategic ambition is to: • To continue to improve profitability growth is crucial, in combination with additonal • Achieve a lost time injury frequency measures to develop a lean business- rate below 1. model for the more s
Slide 25: Q & A Capital Markets Day 2013
Q&A Capital Markets Day 2013 25 25 Sandvik Capital Markets Day 2013, Business Area Sandvik Materials Technology