Capital Markets Day Gary Hughes

Transcription

1 Capital Markets Day 2012 Gary Hughes President of Sandvik Mining

2 Environment, Health and Safety First Our EHS vision is to achieve Zero Harm to our people, to the environment we work in, to our customers and our suppliers YTD LTIFR 2 Sandvik Capital Markets Day 29 May 2012, Business Area Mining

3 Sandvik Mining Asia Australia Europe Customer Services Mining Systems Nafta Africa Middle East South America Sales distribution 2011 Equipment Sales distribution 2011 Rock Tools 3 Full year 2011 Sales MSEK 32,232 Operating result MSEK Sandvik Capital Markets Day 29 May 2012, Business Area Mining Employees 13,300

4 Business drivers Positive long term trend Index 2003= Base metals output* Coal output Mining Capex Sales Mining*** Ore grade copper (RS)** *Base metals: iron ore, copper, zinc, lead, nickel ** All operations (primary mines and co-by product) ***Sandvik Mining and Construction until 2006, Sandvik Mining from 2007 onward Source: Mc Kinsey, RMG, BMI, Freedonia 4 Sandvik Capital Markets Day 29 May 2012, Business Area Mining

5 Business drivers Positive long term trend Long- term trend Index 2003= Base metals output* Coal output Mining Capex Sales Mining*** Ore grade copper (RS)** 1.0 *Base metals: iron ore, copper, zinc, lead, nickel ** All operations (primary mines and co-by product) ***Sandvik Mining and Construction until 2006, Sandvik Mining from 2007 onward Source: Mc Kinsey, RMG, BMI, Freedonia 5 Sandvik Capital Markets Day 29 May 2012, Business Area Mining

6 Key trends Supplier industry Competition Footprint Technology Consolidation Shift to Asia Automation and safety Asian expansion Investments to capture growth Remote locations Flexibility and cost competitiveness Advanced services Productivity and energy efficiency 6 Sandvik Capital Markets Day 29 May 2012, Business Area Mining

7 Immediate challenges What I faced in September 2011 Complex organization Internal focus More focus needed in some areas, less in others Gap between Sandvik Mining and our Peers Strong case for change 7 Sandvik Capital Markets Day 29 May 2012, Business Area Mining

8 Actions taken Great spirit and energy Fantastic Expomin Separation from Construction New organization for 14,000 people in 105 days Successful Top 150 meeting Hats off to Peru Strategy roll-out Transparency and Performance management Great energy unleashed in the organization 8 Sandvik Capital Markets Day 29 May 2012, Business Area Mining

9 Our Mining organization A winning team Increased span of control and fewer layers Clear accountabilities Faster decision making Focus on core business 9 Sandvik Capital Markets Day 29 May 2012, Business Area Mining

10 Sandvik Mining Q Record-high order intake, +40% p/v Major mining systems orders 1.6 bn SEK Increased profitability EBIT 1,494 MSEK (1,208) EBIT margin 17.3% (17.0) ROCE annualized quarter result 39.5% ROCE reported rolling 12 months 39.4% Net working capital 28% (25) of invoicing 10 Sandvik Capital Markets Day 29 May 2012, Business Area Mining

11 Strategic direction Focus on our core business Improve our cost effectiveness Excel in Asia Strengthen our position in Underground Coal 11 Sandvik Capital Markets Day 29 May 2012, Business Area Mining

12 Key priorities Aggressive, profitable growth Net working capital management Speed in product development Best country sourcing Expanding customer services 12 Sandvik Capital Markets Day 29 May 2012, Business Area Mining

13 Mining Systems Re-focus on the Core Mining content from 50% to 90% Integrating Equipment to complete Systems Combining equipment and Project expertise Developing our expertise in Mine Planning 13 Sandvik Capital Markets Day 29 May 2012, Business Area Mining

14 Excel in Asia Focus China China largest market in Q1 in terms of order intake China Product Development Center China sourcing team New Customer service center in Luoyang ZhongRui Mining Equipment Manufacturing Co. Ltd 14 Sandvik Capital Markets Day 29 May 2012, Business Area Mining

15 Product development Premium Sandvik DS421 cable bolter Improved productivity, safety and reliability with one operator Sandvik TH550 and TH540 underground trucks Higher payload ratio, cleaner air and enhanced productivity Mid-market UDR Exploration drill rig 15 Sandvik Capital Markets Day 29 May 2012, Business Area Mining

16 AutoMine AutoMine Loading AutoMine Hauling AutoMine Drilling AutoMine Crushing AutoMine Lite AutoMine Process Management 16 Sandvik Capital Markets Day 29 May 2012, Business Area Mining

17 Expanding our Customer Services Elko 2011 Saskatchewan 2011 Luoyang 2012 ZhongRui JV 2012 Guadalajara 2012 Bogota 2011 Kumasi 2012 New customer service centers Hunter Valley Sandvik Capital Markets Day 29 May 2012, Business Area Mining

18 In Summary Sandvik Mining Sandvik Clear targets Clear accountabilities Well defined core Clear direction Ambition Speed Focus Globalize Open Mind Fair Play Team Spirit 18 Sandvik Capital Markets Day 29 May 2012, Business Area Mining

19 Q&A 19 Sandvik Capital Markets Day 29 May 2012, Business Area Mining