Gn Store Nord A/s · OMXCOP:GN
Gn Store Nord A/s — GN ReSound Group — Investor Day (April 2002)
93 slides from Gn Store Nord A/s's investor day presentation, Apr 30, 2002
Slide 1: GN ReSound Group Capital Market Day
GN ReSound Group Capital Market Day April 30th, 2002
Slide 2: Today's challenge is to improve margins and grow share
Today’s challenge is to improve margins and grow share 1 of 12 Amongst Amongst biggest the leaders the best Grow Our Business Today Integrate Our Business Establish operational excellence Reshape industry structure Make Otometrics the leader Establish global sales Time 1999 2000 2001 200
Slide 3: Agenda
Agenda Introduction J. Mailind Sales & Marketing • Europe & Asia J. F. Andersen • US A. Dozier Technology H. Schimmell Operations M. Mann GN Otometrics M. Brock Profitability & Cash Flow C. Fensholt Closing the Gap J. Mailind 3
Slide 4: GN ReSound Organization
GN ReSound Organization Today´s January 2002 Executive Management speakers Jesper Mailind, Group President & CEO Alan Dozier, EVP and Group President North America Carsten Fensholt, EVP &CFO HR committee IP, Industry Relations Finance & IT and Viennatone Nikolai Bisgaard Carsten Fensholt Research &
Slide 5: Jesper Mailind, President and CEO
Jesper Mailind, President and CEO 1997 - GN ReSound Group President 1995 – 1997 Nycomed Danmark A/S President 1988 – 1997 Nycomed Pharma Group, Norway Senior Vice President, Sales/Marketing 1985-87 McKinsey & Co., Inc. Education MBA, Insead M.Sc. Business Economics Age 45 5
Slide 6: Alan Dozier, EVP, President North America
Alan Dozier, EVP, President North America Jan. 2001 - GN ReSound Group EVP & Group President 1985 – 2000 Bausch & Lomb. US President (update) VP, Sales & Marketing General Manager Director of Marketing 1991 – 1996 U.S. Pharmaceuticals Corporate VP and President U.S. Education MBA, Cornell Age 47 6
Slide 7: Jesper Funding Andersen, Snr. VP of Int. Business
Jesper Funding Andersen, Snr. VP of Int. Business Feb. 2002 - GN ReSound Group Snr. VP, International Business 1994 – 2001 Maersk Medical Group President, Europe General Manager, incl. Largest BU Corporate Strategy 1990 - 1994 McKinsey & Company Education M.Sc. Economics Age 36 7
Slide 8: Henrik Schimmell, Snr. VP of Research & Core Technology
Henrik Schimmell, Snr. VP of Research & Core Technology 1999 - GN ReSound Group Snr. VP of Research & Core Technology 1998 – 1999 GN Danavox Director, R&D 1997 – 1998 Barco A/S Director, R&D 1992 - 1997 RE Technology Corporate R&D Manager Education Ph.D. ( “Optical Gigabit Distribution Systems”) M.S
Slide 9: Mike Mann, VP of International Operations
Mike Mann, VP of International Operations 2001 - GN ReSound Group VP, Manufacturing 2000 – 2001 SONUS Director, E-Commerce 1996 – 2000 Siemens Audiologische Technik Director of Manufacturing Operations Manager 1988 - 1992 Starkey Laboratories Education M.Sc. Mathematics and Architecture Age 37 9
Slide 10: Michael Brock, President, GN Otometrics
Michael Brock, President, GN Otometrics 1996 - GN Otometrics A/S President 1979 – 96 Brüel & Kjær A/S President, Sound&Vibration Division Sales & Marketing Manager Acoustic Portfolio Manager Innovation & Key Customer Contact Education M.Sc, Electronics Engineering Age 47 10
Slide 11: Carsten Fensholt, EVP, CFO
Carsten Fensholt, EVP, CFO 2001 - GN ReSound Group Chief Financial Officer 1998 – 2001 Sony Nordic Managing Director Chief Financial Officer 1988 - 1996 Mars Inc. Finance Director Finance Manager Education M.Sc. Economics Age 39 11
Slide 12: GN ReSound Group reshaped the industry
GN ReSound Group reshaped the industry R2001, Hearing Aids Siemens GN ReSound Group WD Phonak Group Starkey Widex ReSound Beltone GN Danavox Philips Viennatone 12
Slide 13: The Starting Point
The Starting Point EBITA %, year prior to merger 10% 7% 7% -4% -5% Viennatone Danavox Philips Beltone ReSound (1999) (1999) (2000) (2000) (1999) 13
Slide 14: Many other transactions have taken place
Many other transactions have taken place Target name Timing # of employees Danavox Acquiring entity ~800 ReSound Corp. June 1999 ~1.200 Danplex A/S August 1999 ~60 AB Transistor Jun 2000 ~150 Beltone Jun 2000 ~1.250 Ternen Jul 2000 ~50 Hortmann Aug 2000 ~35 Bass & High Dec 2000 ~20 ICS Dec 2000 ~30
Slide 15: Three complementary business units
Three complementary business units GN ReSound Group GN ReSound Beltone GN Otometrics • Danavox and • Beltone and Philips • Madsen ReSound • Danplex • Hortmann • Viennatone • ICS • Auditdata • Global coverage • Global coverage • Global coverage 15
Slide 16: Each brand adds unique value
Each brand adds unique value “Care” “Knowledge” “Innovation” 16
Slide 17: Global Presence
Global Presence Sales subsidiary Manufacturing R&D Global distribution center 17
Slide 18: Revenue mix
Revenue mix Percent, 2001 Oceania & South GN Otometrics America North Asia America 10 5 12 43 30 60 41 Beltone Europe GN ReSound 18
Slide 19: Workforce mix
Workforce mix Employees by Geography Employees by Function Actual, End March 2002 Actual, End March 2002 Admin. U.S. 325 Sales & Europe distr. 1,172 714 1,595 2,107 200 R&D 579 Asia Production Total = 3,346 19
Slide 20: Product mix
Product mix Percent, 2001 GN Otometrics Analog 10 29 44 17 Digital Programmable 20
Slide 21: P&L comparison
P&L comparison Key figures 2001 WD Phonak GNR (FY01/02E) Revenue (m) 3,506 ~2,900 2,906 Revenue growth 18.5% ~26% 28.9% 2000-2001 EBITA (m) 683 ~380 203 EBITA margin 19.5% ~13% 7.0% 21
Slide 22: Restructuring already done
Restructuring already done • ReSound and GN Danavox sales organisation merged in US, Germany, Holland, Switzerland, France and UK • Manufacturing capacity in China increased • Component plant in Denmark established • GN ReSound and Beltone/Philips sales organisations merged in Norway, Sweden, Belgiu
Slide 23: Agenda
Agenda Introduction J. Mailind Sales & Marketing • Europe & Asia J. F. Andersen • US A. Dozier Technology H. Schimmell Operations M. Mann GN Otometrics M. Brock Profitability & Cash Flow C. Fensholt Closing the Gap J. Mailind 23
Slide 24: Consolidation to two brands
Consolidation to two brands 1999 2000 2001-2004 Danavox + Viennatone ReSound ReSound + + ReSound Beltone + + Beltone Philips Risk Risk of of negative negative sales sales synergies synergies 24
Slide 25: Product pruning
Product pruning 264 Philips 90 189 56 Beltone 66 ~100 122 49 ReSound 38 23 38 38 27 Viennatone 25 Danavox 46 47 32 1999 2000 2001 2004 Note: Impact from parts pruning is even more significant 25
Slide 26: Canta share & breakdown
Canta share & breakdown Revenue % of ReSound brand Canta split by 7 & 4 30% Canta 4 Other 46% Canta 70% Canta 7 54% 26
Slide 27: Canta holds up against later launches
Canta holds up against later launches Canta 4/7 Revenue Triano Triano launch launch Diva Diva launch launch Adapto Adapto launch launch Canta Canta 4/7 4/7 launch launch Time 27
Slide 28: 2001 revenue growth by market
2001 revenue growth by market Revenue 2000-2001 Market 0-10% Norway, France, Netherlands, Belgium, Italy, Sweden, Japan 11-20% Germany, Brazil, China, Austria, Switzerland, Spain, Canada 21-30% + New Zealand, Denmark, Australia, UK US came in at 0% growth, due to Beltone experiencing negative growth
Slide 29: 2001 market shares
2001 market shares Market share (revenue) Market 0-10% Australia, Italy 11-20% Switzerland, Canada, US, New Zealand, Germany, Japan, Denmark, Norway, UK, France 21-30% + Austria, Spain, Belgium, China, Sweden, Brazil, Netherlands In two-thirds of these markets, GN ReSound is number 1, 2 or 3 29
Slide 30: Low/mid price digital segment is emerging
Low/mid price digital segment is emerging Q1, 2002 Segments US NL Germany High-end digital 15% 20% 20% Medium digital 22% 12% 30% 8% 20% Low-end Program- 13% digital mable 18% 15% 10% 32% 40% Analogue 25% 30
Slide 31: Digital portfolio vs. market segments
Digital portfolio vs. market segments CONCEPTUAL Canta MARKET TODAY 2002 family High digital Canta 7 Med digital Canta 4 Canta 2 Low digital (May ‘02) P-analog Analog 31
Slide 32: The Canta family is complete - for now
The Canta family is complete - for now... Category = I Category = II Category = III Benefit Triano Canta7 Diva Adapto Canta4 Prisma Claro Aero Signia Canta2 Senso+ Natura 2 Music-D Bravo DigiFocus II Phoenix Mezzo Senso P DigiLife 25 Ergo A Series Price 32
Slide 33: ...and Canta sales continue to grow
…and Canta sales continue to grow Canta 2/4/7 Revenue Canta Canta family family Triano Triano launch launch Diva Diva launch launch Adapto Adapto launch launch Canta Canta 4/7 4/7 launch launch Time 33
Slide 34: Agenda
Agenda Introduction J. Mailind Sales & Marketing • Europe & Asia J. F. Andersen • US A. Dozier Technology H. Schimmell Operations M. Mann GN Otometrics M. Brock Profitability & Cash Flow C. Fensholt Closing the Gap J. Mailind 34
Slide 35: GN ReSound Group North America
GN ReSound Group North America Maximizing the potential of each business while also leveraging competencies and capabilities across the businesses 35
Slide 36: GN ReSound - moving forward
GN ReSound - moving forward Great high-end digital technology and audiology training Lack of focus on operations Broadened product portfolio, with a focus on operations and market related drivers resulting in an expanded competitive position 36
Slide 37: Growth drivers
Growth drivers The “Old” Success The “New” Success Formula Formula Products (Features) Products (Benefits) Audiology Training Comprehensive Training Sales “Detailing” Customer Relationship Management “Push” Marketing “Business Building” Marketing 37
Slide 38: US Market development
US Market development Total (units) Digital segment (units) +2% +0% +.4% +54% +37% +61% 1999 2000 2001 2002, Q1 1999 2000 2001 2002, Q1 38
Slide 39: US development in digital segment
US development in digital segment 37% 15% High 25% 19% 17% Mid 12% 17% Low 8% 10% Q1 2000 Q1 2001 Q1 2002 39
Slide 40: US Canta sales
US Canta sales Units 10,000 8,000 6,000 4,000 2,000 April May June July Aug Sept Oct Nov Dec Jan Feb March 2001 2002 40
Slide 41: Canta is broadening the digital market reach
Canta 2 is broadening the digital market reach High End 15% Canta 7 (Flat/Declining) Middle 12% Canta 4 (Growing) Low End 10% Canta 2 (Growing) 41
Slide 42: Distribution consolidation
Distribution consolidation Government • VA “Networks” 10% • Beltone 15% • Miracle Ear 30% • Avada • Audibel National/Regional Groups 10% • Sonus • HearX/Helix •Newport Audiology 10% 25% Local Chains Buying Groups Consolidation Independent Dispensers All numbers are GN ReSound US estimates 42
Slide 43: Targeting growth in all channels
Targeting growth in all channels Independent Dispensers Expansion into mid-market customers Buying Groups Focus on Regional groups Local Chains 20-Plus Focused accounts National/Regional Groups Sonus, Others Government (Veterans Re-building key relationships Administration) 43
Slide 44: The right to grow
The right to grow The Canta Family Product quality and supply Sales execution, training, customer service Business-building marketing 44
Slide 45: Beltone is moving forward
Beltone is moving forward Brand Name, Direct Marketing and Network Relations Market-Lagging Technology Great Marketing, Competitive Technology and the Ability to Compete in the Open Market 45
Slide 46: Positive development in points of sale
Positive development in points of sale 2,000 1,750 1,800 1,570 1,600 1,380 1,400 1,220 1,175 1,175 1,200 1,200 1,200 1,000 Avada 800 Stabilization 600 Audibel and Growth 400 200 0 2000 2001 2002 Total U.S. Locations 46
Slide 47: The benefits of network affiliation
The benefits of network affiliation Networks 15% • Marketing Support • Training • Products • Exclusive Market Areas TOTAL MARKET 47
Slide 48: Sources for new network members
Sources for new network members • Other “Networks” (e.g. Miracle Ear, Sonus) • Multi-Line Owners • ENTs • Former Beltone Owners & Fitters • AUDs (NAFDA) Approach = To Build the Network in a high quality manner, member by member 48
Slide 49: Beltone - a powerful business model
Beltone - a powerful business model • Number one Brand Name in the Market • Broad Product Line • Exclusive Market Areas • Best Marketing Support in the Industry • New Digital Technology - Oria™ • Comprehensive Training Program • A Growing Package of Network Support 49
Slide 50: Beltone's revenue by technology
Beltone’s revenue by technology The U.S. Market Beltone Digital Digital 20% Share Share 20% 37% 63% 80% Analog Analog and programmable and programmable share share 50
Slide 51: Beltone University training programs
Product training: Practice growth: Basics - for beginning Advanced Consultative Care fittes process - presentation skills for Digital - mastering getting patients to accept high-end fittings amplification Practical fitting - enhancing patient Growing Your Business - Strategies acceptance with & prac
Slide 52: Leveraging core competencies
Beltone, GN ReSound and GN Otometrics - leveraging core competencies Database Database Broad Broad Product Product Marketing Marketing Line Line Audiology Audiology Training Training Brand- Brand- Building Building Customer Customer Relationship Relationship Selling Selling Skills Skills Management
Slide 53: Agenda
Agenda Introduction J. Mailind Sales & Marketing • Europe & Asia J. F. Andersen • US A. Dozier Technology H. Schimmell Operations M. Mann GN Otometrics M. Brock Profitability & Cash Flow C. Fensholt Closing the Gap J. Mailind 53
Slide 54: R&D investments, size & headcount
R&D investments, size & headcount Primary R&D Sites 200 headcount 2000 2001 Research & Core Technology sites R&D 167 173 – Chicago – Copenhagen 6% 6% of of 2001 2001 – Eindhoven revenue revenue 54
Slide 55: R&CT and Brand Divisions
R&CT and Brand Divisions Research & Core Technology R&CT Platforms Organized in Competence Centers, Multi-Site GN ReSound Brand Div Beltone Brand Div Products - Products - Product Road Map Road Map Development Teams in Brands 55
Slide 56: Consolidation of platforms
Consolidation of platforms 56
Slide 57: Hard-wired vs. software-based platform
Hard-wired vs. software-based platform Signal Processing A: load x Algorithm sub y mult a RO add y -P HI store y Parameter output y Memory jump A As ing wit le alg Program RAM CTRL h pr o ogr rithm OS DFS COMPNR BM ADDR amm cas MAC able t in s IRQ par ilico Data RAM ROM amt n ers -P RO ! Program O E
Slide 58: Software based DSP platform
Software based DSP platform Improved Time-to-Market Less Development Complexity Reduced Development Cost Resources focused on new products Program RAM OSDFS COMP NRBM CTRL DSP platform the industry trend ADDR MAC IRQ Data RAM ROM Program P RO EEPROM Memory - OS HI DFS COMP ZOOM NRBM 58
Slide 59: Development cycle - open DSP platform
Development cycle - open DSP platform Q1 Q2 Q3 Q5 Q6 Q7 Q8 Hardwired Chip design 2nd Tape-Out Integration & Test & M T/V Verification Manufact. Iteration 1st Tape-Out .. Test in real product … In real HW Algorithm development Research Trial? Research Alpha Trial Beta Trial Trial Software Based Algor
Slide 60: Future trends
Future trends Improved Comfort Wireless Platforms & Complete Lines Improved Intelligent Speech Understanding devices End-User Focused Fitting Sessions 60
Slide 61: Agenda
Agenda Introduction J. Mailind Sales & Marketing • Europe & Asia J. F. Andersen • US A. Dozier Technology H. Schimmell Operations M. Mann GN Otometrics M. Brock Profitability & Cash Flow C. Fensholt Closing the Gap J. Mailind 61
Slide 62: Operations starting point
Operations starting point La f5 d op ck o o er ize era f rg s t ski ons i Me ium- ies lls e d pan m om c Challenge and Opportunity Technology Focused Mindset 62
Slide 63: Manufacturing and distribution - the tour
Manufacturing and distribution - the tour Demand flow Labor Systems force & processes reduction Improved Efficiency ITE plant Plant consoli- consoli- dation dation 63
Slide 64: Demand flow
Demand flow “Demand Flow Technology is a business strategy…it is an absolute business discipline and for every one of us from the factory floor to the office, it is another way to simplify the business, it is a way to put order into everything you do” Jack Welch Former CEO General Electric 64
Slide 65: Advantages of demand flow
Advantages of demand flow MATERIAL FE E DE R K PR Advantages of flow: O CE SS •Less inventory FLOW PROCESS FGI •Higher quality •Lower skill level TEST MACHINE CELL required K E •In-built continuous AV W P K improvement DI AS MB Q LY SE VCD MATERIAL W W K 65
Slide 66: Demand flow implementation status
Demand flow implementation status Done Chicago, UK > 25% Bloomington Eindhoven Start-up 2002 Spain Tokyo Start-up 2003 European sites 66
Slide 67: Manufacturing labor force development
Manufacturing labor force development # of labor, operations US: US: 11.5-14.3$/hr. 11.5-14.3$/hr. Xiamen: Xiamen: 1.5$/hr. 1.5$/hr. ~2,000 Eindhoven 1,800 Chicago China Plant Plant consolidation consolidation (mass (mass Viennatone production) production) Redwood City Outside China 2001 2004 67
Slide 68: Main plant consolidation
Main plant consolidation 2000 2003 / 2004 Præstø ~100 ~100 FTE+ FTE+ rent rent savings savings Vienna Cork (2002 (2002 alone) alone) Eindhoven Cork China China Chicago 68
Slide 69: Custom plant consolidation
Custom plant consolidation 2000 2002 Minnetonka Eagan Bloomington 45 45 FTE FTE ++ rent rent Redwood City savings savings Site #1 From 2 to 1 Site Japan, Spain, Austria, Holland Site #2 and ongoing ... 69
Slide 70: Continuous improvement mindset
Continuous improvement mindset • Corrective and preventative actions • Key performance indicators Eliminate waste Constant performance Synchro- dialog nize Manage flow variability • Product mix • Labor schedules • Product ramp- • Suppliers ups 70
Slide 71: Agenda
Agenda Introduction J. Mailind Sales & Marketing • Europe & Asia J. F. Andersen • US A. Dozier Technology H. Schimmell Operations M. Mann GN Otometrics M. Brock Profitability & Cash Flow C. Fensholt Closing the Gap J. Mailind 71
Slide 72: GN Otometrics profile
GN Otometrics profile 10 30 60 • Market share Worldwide • Technology and knowledge leader • Full solution provider under 6 brands • All major markets Global • Dedicated sales organization • 250 employees worldwide 72
Slide 73: GN Otometrics (also) consolidated the industry
GN Otometrics (also) consolidated the industry R2001 GN Otometrics MADSEN GSI/Viasys Biologic Interacoustics (WD Total) Maico ICS Medical Dec 2000 Danplex/Rastronics August 1999 Hortmann August 2000 Auditdata January 2001 Amplaid 73
Slide 74: Revenue growth has been substantial
Revenue growth has been substantial DKK mio. 290 Organic Organic growth growth ´00-´01 ´00-´01 was was 17% 17% 180 110 120 80 1997 1998 1999 2000 2001 74
Slide 75: The leading player in this industry
The leading player in this industry Total market is ~1.3 bn. DKK growing approx. 5% (end user prices) Frye 3% Biologic Amplaid 10% 3% Other GSI 33% 10% IA GNO Maico 9% 25% 7% Source: GNO estimate 75
Slide 76: Manufacturing sites are consolidated
Manufacturing sites are consolidated Odense Copenhagen Copenhagen Stuttgart Chicago Chicago 76
Slide 77: Product portfolio is being revised
Product portfolio is being revised Significant product pruning Moving towards platforms ….and standardized accessories 77
Slide 78: Segments in diagnostic audiology
Segments in diagnostic audiology Industry, Military, Schools Doctors HI Dispensers Audiometry & Infant Fitting&Test ABR, Office Man. Impedance Screening Systems Balance SW 78
Slide 79: Services to three distinct segments
Services to three distinct segments Segments Industry, Industry, • Occupational Health military, military, • Hearing Screening Programs schools schools • HI Test • ENT’s, pediatricians, GP’s Doctors Doctors • Assessments and diagnostics • HI Referrals and control • Audiologic assessment HI HI dispen
Slide 80: Products and services in five main categories
Products and services in five main categories Products & Services Audiometry Audiometry & & • Hearing threshold assessment Impedance Impedance • Objective middle ear diagnosis • Newborns and children Infant Infant • Objective hearing assessment screening screening • Inner ear or neurological • Audio
Slide 81: Leader in most segments and services
Leader in most segments and services TOTAL MARKET SIZE = DKK ~1.3 bn. GN GN Industry, Military, N/A Schools GN GN GN Doctors N/A GN GN HI N/A Dispensers Audiometry & Infant Fitting&Test ABR, Office Man. Impedance Screening Systems Balance SW 81
Slide 82: Leading technologies & patents
Leading technologies & patents Bluetooth™ General audiology Software competencies Contacts to leading university hospitals & KOL’s worldwide Several patents and exclusive license agreements 82
Slide 83: GN Otometrics is a strong group asset
GN Otometrics is a strong group asset Access to HI customers and influencers Reinvents “How to fit a hearing aid” Integrates assessment and fitting Detects & monitors potential hearing loss from birth onwards Strong “stand alone” business 83
Slide 84: Agenda
Agenda Introduction J. Mailind Sales & Marketing • Europe & Asia J. F. Andersen • US A. Dozier Technology H. Schimmell Operations M. Mann GN Otometrics M. Brock Profitability & Cash Flow C. Fensholt Closing the Gap J. Mailind 84
Slide 85: Revenue & margins by quarter
Revenue & margins by quarter DKK m. 800 10.0% 700 9.0% 8.0% 600 7.0% 500 6.0% 400 5.0% 300 4.0% 3.0% 200 2.0% 100 1.0% - 0.0% Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q1 Q2 02 01 Q1 03 Q1 Q3 01 04 Q4 01 Revenues 391 497 665 702 701 725 724 756 EBIT A Margin 7.2% 6.8% 8.6% 3.6% 6.1% 5.2% 7.6% 8.9% 85
Slide 86: Gross margin improvement
Gross margin improvement 0.5-1.5% 0-0.5% 2.5-4.0% 0.5-1.5% 56.3- 3.5-5.5% 62.3% 49.3% 2001 Plant Pruning Demand Direct Process 2004 closure (Brand, flow materials & & product, parts) procedure transfer 86
Slide 87: OPEX/fixed cost reductions
OPEX/fixed cost reductions 38%* 2001 Overhead Oto- Indirect Systems 2004 reduction metrics materials integration * S,D,G&A as % of revenues 87
Slide 88: IT systems
IT systems 2000 2001 2002 2003 Navision Navision Navision Navision SAP SAP SAP System selection MfG Pro MfG Pro Man man Simplicity Various & Control other 88
Slide 89: Cash flow improvement
Cash flow improvement Stock Debtors Payables/Suppliers Systems & procedures 89
Slide 90: Global supply chain
Global supply chain Old Supply Chain New Supply Chain Weekly 90
Slide 91: Global inventory
Global inventory 60% 70% 20% 20% 20% 10% Plants GDC Subs Plants GDC Subs 91
Slide 92: Agenda
Agenda Introduction J. Mailind Sales & Marketing • Europe & Asia J. F. Andersen • US A. Dozier Technology H. Schimmell Operations M. Mann GN Otometrics M. Brock Profitability & Cash Flow C. Fensholt Closing the Gap J. Mailind 92
Slide 93: Less complexity will close the Margin Gap
Less complexity will close the Margin Gap Fewer Fewer plants plants 2001 2004 Fewer Fewer brands brands Fewer Fewer products products & & parts parts Less Less overhead overhead Fewer Fewer systems systems Demand Demand flow flow Cash Cash flow flow focus focus Operational Operational excellence exc