Sulzer Ag · SIX:SUN
Sulzer — Investor Day (October 2008)
17 slides from Sulzer's investor day presentation, Oct 20, 2008
Slide 1: Sulzer Turbo Services
Capital Market Day 2008 Sulzer Turbo Services Peter Alexander, Division President | Status October 20, 2008
Slide 2: Our business: Service and repair of Thermal Turbomachinery
Our business: Service and repair of Thermal Turbomachinery Sulzer Turbo Services Products and services Focus on land-based gas turbines, steam turbines and compressors Repair and maintenance of all types of turbines and compressors Global network with operations Customer benefits High reliab
Slide 3: Financial performance H1-2008
Financial performance H1-2008 Sulzer Turbo Services 2008 2007 millions of CHF Jan.–Jun. Jan.–Jun. U% U% adj.1) Order intake 154.4 172.3 -10.4 -0.3 Sales 149.6 134.4 11.3 22.8 EBITDA 17.6 15.2 15.8 EBIT 13.7 11.7 17.1 ROS (EBIT/sales) 9.2% 8.7% — Order backlog (as of 06/30 and 12/31) 153.1 157.6 -2.9
Slide 4: Sales split by market segment and by region
Sales split by market segment and by region Sulzer Turbo Services Sales by market segment1) Sales by region1) 2% 12% 20% 26% 6% 48% 46% Other industrial markets Europe Power generation North America 26% HPI (Oil und gas, Latin America downstream) 2) Asia, Australia 14% Oil and gas Africa (upstream)
Slide 5: Developing geographically: Acquisition in Latin America
Developing geographically Acquisition in Latin America Sulzer Turbo Services Facility/operational site Sales office Netherlands (2) Canada Switzerland ASP NAM EMA Abu Dhabi, UAE Malaysia Belle Chasse, USA La Porte, USA India Indonesia SAM Latin America: Venezuela Brazil (2) Uruguay Argentina Countri
Slide 6: Products and services at a glance
Products and services at a glance Sulzer Turbo Services Service Products Technologies Gas turbines Complete unit repair Component repair Parts – manufacturing Parts – procurement/ sourcing Steam turbines Field services Technical supervision Control retrofits Re-application Compressors Modifications
Slide 7: Innovation and solutions within Turbo Services
Innovation and solutions within Turbo Services Sulzer Turbo Services Turbo Services does not sell commodity products… …solutions are developed for our clients Design and analysis capability… … in-house high-end engineering Innovation every day provides solutions… … rapid prototyping and applic
Slide 8: Innovative coatings to reduce fuel consumption
Innovative coatings to reduce fuel consumption Sulzer Turbo Services Sealing on the first row of turbine blades can be problematic Improved sealing in gas turbines improves efficiency and reduces fuel consumption Joint project with Sulzer Innotec to develop a new coating system Innovative si
Slide 9: Blade re-design to meet a customer's needs
Blade re-design to meet a customer’s needs Sulzer Turbo Services A customer found that their blades were failing early in life due to a deformation on the shroud of the turbine blades Working with the customer and their insurance company, a tailor-made solution was developed The new design has
Slide 10: Rehabilitation of a power plant in Libya
Rehabilitation of a power plant in Libya - a typical contracts and engineering project Sulzer Turbo Services A 35 year old power plant with seven gas turbines needed a major rehabilitation Working with the client, a customized solution was developed The improvement plan included the repair or
Slide 11: Markets at a glance
Markets at a glance Sulzer Turbo Services Segment Current situation Outlook to 2009/10 Oil and gas Good market; some Continued growth (upstream) maintenance delayed opportunity HPI Good market; some Expecting some (oil and gas, maintenance delayed; slowdown in 2009 downstream) upgrades coming CPI Go
Slide 12: Our customers across the globe
Our customers across the globe Sulzer Turbo Services Utilities AES Corp, Calpine, Duke Energy, EGAT, EON, EPZ, EVN, GS Power, Long Wang, NTPC, PLN , RWE, SCECO, SSE, TNB Oil and gas BP, Chevron Texaco, HPI El Paso, Exxon Mobil, Kazak Oil, Pemex, Pertavesa , Petrobras, Petronas, Sonatrac, Pertamina,
Slide 13: Our capabilities
Our capabilities Sulzer Turbo Services Our diversity is our strength Competitors Sulzer Turbo OEMs Wood GTS Local players Segment Services Gas-turbine (mature) ■ ■ ■ ■ Gas-turbine (advanced) ■ ■ ■ Steam turbines ■ ■ ■ ■ Compressors ■ ■ ■ ■ Field service ■ ■ ■ ■ Capital parts ■ ■ ■ ■ Capital Market D
Slide 14: Midrange targets
Midrange targets Sulzer Turbo Services millions of CHF FY2007 H1-2008 Midrange targets Order intake 313.2 154.4 Organic sales growth Sales 279.0 149.6 >7.0% EBITDA 32.4 17.6 EBIT 25.1 13.7 ROS (EBIT/sales) 9.0% 9.2% >10.0% Order backlog (as of 12-31/06-30) 157.6 153.1 Employees1) (as of 12-31/06-30)
Slide 15: Summary: Review and outlook
Summary: Review and outlook Sulzer Turbo Services Continued high level of activity Creating value Drive ROS >10%, ROCE >14% Operational excellence initiatives Geographic development Exciting opportunities with Contracts and Engineering Differentiate through service, innovative technolo
Slide 16: Capital Market Day 2008
Capital Market Day 2008 Peter Alexander, Division President | Status October 20, 2008
Slide 17: The Safe Harbor Statement under the US Private Securities Litigation Reform Act 1995
Sulzer Turbo Services THE SAFE HARBOR STATEMENT UNDER THE US PRIVATE SECURITIES LITIGATION REFORM ACT 1995 This presentation contains forward-looking statements, including but not limited to, projections of future performance of materials and products, containing risks and uncertainties. These state