Nkt A/s · OMXCOP:NKT
Nkt A/s — Non-Deal Roadshow (January 2016)
29 slides from Nkt A/s's roadshow presentation, Jan 6, 2016
Slide 1: NKT Carnegie - Nilfisk Asia Roadshow
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 1 NKT Carnegie - Nilfisk Asia Roadshow 6 January 2016 - Beijing, China
Slide 2: Forward looking statements
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 2 Forward looking statements This presentation and related comments contain forward- looking statements Such statements are subject to many uncertainties and risks, as various factors of which several are beyond NKT Group’s control, may caus
Slide 3: Today's presenters
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 3 Today’s presenters Jakob Bergendorff Eric Wu Nilfisk Asia Nilfisk Global Operations Senior General Manager, Asia Site Director, Suzhou, China
Slide 4: Agenda
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 4 Agenda Nilfisk Asia sales • Introduction • Market situation • Working with global Accelerate strategy and local strategy Nilfisk Global Operations Suzhou site Questions & Answers
Slide 5: Nilfisk overview on products, geographies and segments
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 5 Nilfisk overview on products, geographies and segments Sales entities Manufacturing companies 3% 9% 11% 10% Total: 19% DKK 44% 65% 56% 6,836m 24% 34% 25% Sales by products Sales by geography Sales by customers Floor care EMEA Commercial marke
Slide 6: Nilfisk Asia sales organisation supports clear sales focus
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 6 Nilfisk Asia Sales organisation supports clear sales focus Nilfisk Asia: 9 independent sales companies with 3 group support functions Nilfisk Asia Nilfisk sales Business Development HR Finance China Japan Korea Thailand/Vietnam Singapore/Indo
Slide 7: Floorcare and vacuums are strongholds in Asia
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 7 Floorcare and vacuums are strongholds in Asia Floorcare equipment Vacuum cleaners High-pressure washers Service • Scrubbers and sweepers • Commercial • Professional • Service and • Outdoor • Industrial • Consumer maintenance • Consumer • Part
Slide 8: Market outlook indicates significant overall growth
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 8 Market outlook indicates significant overall growth Asia market outlook 2014-2020 EURm Market outlook is very positive +5% 1.126 1.072 and the average growth is 1.021 expected at 5% 926 972 840 882 Macro economic forecast: • GDP growth 2015:
Slide 9: One of the Asia leaders in a fragmented industry
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 9 One of the Asia leaders in a fragmented industry Professional cleaning equipment industry - Asia market shares Market shares of total Asia market, % 8.0 • Nilfisk is among the Asia leaders in the professional cleaning equipment industry Kärch
Slide 10: Working with Accelerate strategy in Nilfisk Asia
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 10 Working with Accelerate strategy in Nilfisk Asia Accelerate Growing our company to lead the industry Grow market share Strengthen Drive competitive Build strong Power front-end offerings brands supply chain performance Agile and commercial o
Slide 11: Strengthen front-end: strong-hold in high-end, potential in mid-market
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 11 Strengthen front-end Nilfisk has a strong-hold in the high-end and potential to grow in mid-market Market value Nilfisk's across Asia How the market works go-to-market (~45%) • Service • Direct sales High-end • Features • Distributors • Serv
Slide 12: New organisation and approach in China
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 12 Strengthen front-end New organisation and approach in China to support clear sales focus Previous structure: Independent companies New structure: Matrix management 1 HQ company with 10 regional companies 1 HQ company with 9 regional sales of
Slide 13: New organisation and approach in China has clear benefits
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 13 Strengthen front-end New organisation and approach in China has clear benefits Internal changes and benefits External changes and benefits • Build up standard and unified process • More direct sales contact etc. • More transparency in centra
Slide 14: Rest of Asia approached with two go-to-market strategies
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 14 Rest of Asia is approached with two different go-to-market strategies Strategy A: Strengthen position Strategy B: Invest and grow - Optimize sales and service - Build strong local sales - Take market shares from main competitors - Find more
Slide 15: Product offering, brands and supply chain
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 15 Product offering, brands and supply chain New organisational structure will improve our position Actions Benefits • Focused offering for target segments • Easier for the sales reps Drive competitive • Strong product management • Offer tested
Slide 16: Solution selling and market access are essential competitive elements
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 16 Solution selling and market access are essential competitive elements Asia trends How we respond • Commoditisation • Solution selling and strong Viper portfolio • Need for basic products • Introduce Nilfisk Go-Line and extending Viper portfo
Slide 17: Agenda
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 17 Agenda Nilfisk Asia sales • Introduction • Market situation • Working with global Accelerate strategy and local strategy Nilfisk Global Operations Suzhou site Questions & Answers
Slide 18: Asset-light production through assembly-only
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 18 Asset-light production through assembly-only China 30% of global production Hungary (2 sites) ~30% of global production US ~10% of global production China (2 sites) Mexico ~30% of global production ~10% of global production Italy (2 sites) ~
Slide 19: Overview of Nilfisk Suzhou site
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 19 Overview of Nilfisk Suzhou site Basic information Established 2003 History • 2003-2007: Small “start-up” facility • 2007: Moved into current facility, and former Ningbo factory was consolidated into Suzhou site Strategy • Production for Nilf
Slide 20: Key figures of Nilfisk Suzhou site
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 20 Key figures of Nilfisk Suzhou site 300~500 +21,000 m2 15 employees size of the building assembly lines Suzhou is a ‘pure’ assembly operation serving • Group distribution centres in Europe and North America • Individual market organisations i
Slide 21: Product portfolio of Nilfisk Suzhou site
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 21 Product portfolio of Nilfisk Suzhou site focuses on high volume products Industrial vacs Floor care Commercial vacs Consum. vacs/HPW Accessories
Slide 22: Nilfisk Suzhou value chain is driven by LEAN
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 22 Nilfisk Suzhou value chain is driven by LEAN across areas Value chain steps Receive order Release Production from Warehouse Warehouse purchase deliver finish distribution receive parts deliver parts Production Shipping order to goods to cent
Slide 23: Nilfisk Suzhou site layout ensures clear production flow
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 23 Nilfisk Suzhou site layout ensures clear production flow 1st Floor: High pressure washer production 2nd Floor: Vacuum production
Slide 24: Nilfisk Suzhou has benefited from successful LEAN implementation
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 24 Nilfisk Suzhou has benefited from a successful implementation of LEAN 2015 Automation for Excellent line saving: 2014 90 EURt/year Automation for 2014 Compact line Productivity modeling saving: 110 EURt/year 2013 saving: 55 EURt/year Worksho
Slide 25: Nilfisk Suzhou has implemented automation wherever feasible
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 25 Nilfisk Suzhou has also implemented automation whereever feasible O-Ring assembly Robot load Auto inject machine to oil system pallet - Reduce cost - Improve quality - Eliminate waste Auto seal Auto- tape for assemble box cylinder Auto test
Slide 26: Suzhou wages kept low due to lean and automation
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 26 Nilfisk Suzhou's wages have been kept low due to lean and automation Nilfisk Suzhou's salary development and cost of sales ratio Salary development Direct labor costs Indexed to 2010 = 100 % of sales 160 2.5 • Direct labor annual salary has
Slide 27: Nilfisk's Suzhou site has main production advantages
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 27 Nilfisk's Suzhou site has 5 main production advantages Opportunities Suzhou site's advantages Challenges Possibilty to expand 1. On-time delivery performance Increasing labour cost product portfolio beyond 2. Low cost current consumer focus
Slide 28: Agenda: Questions & Answers
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 28 Agenda Nilfisk Asia sales • Introduction • Market situation • Working with global Accelerate strategy and local strategy Nilfisk Global Operations Suzhou site Questions & Answers
Slide 29: Financial calendar
NKT I Carnegie - Nilfisk Asia Roadshow 6 January 2016 I 29 Financial calendar 2016 26 February 2015 Annual Report 3 March Deadline for receipt of resolutions for the AGM 31 March Annual General Meeting 12 May Interim Report, Q1 18 August Interim Report, Q2 11 November Interim Report, Q3 2017 1 March