CMD 2017 SWEDEN OPTIMIZING OPERATIONS JONAS SÖDERKVIST, EVP, SWEDEN & DENMARK

Transcription

1 CMD 2017 SWEDEN OPTIMIZING OPERATIONS JONAS SÖDERKVIST, EVP, SWEDEN & DENMARK

2 SWEDEN OVERVIEW # 2 MARKET POSITION 820 EMPLOYEES (FTE) Sales MIX Sales BY CUSTOMER SECTOR Industrial SMB Large Construction 79 Locations Rental Service Temporary Space OTHER SMB: Small and medium-sized constructors Large: Large constructors Net sales (MEUR) COMPaRABLE EBIT (MEUR) & MARGIN (%) COMPARABLE ROCE R R % 12% 8% 4% 2 15% 1 5% R12 Capital Markets Day

3 SWEDEN KEY ACTIONS & ACHIEVEMENTS NON-PerforMING UNITS addressed FOCUS ON RENTAL sales increased SUPPLY CHAIN PERFORMANCE IMPROVED Pricing development Scaffolding operation turned around Tower cranes unit divested More SMB customers Frame agreements with JM, Skanska Maskin & NCC New Total Solution orders evidence of strong offering Modern warehouse and logistics hub established in Stockholm Improved supply chain processes have raised machine availability Services surcharges reviewed Improved customer segmentation Strengthened safety offering Capital Markets Day

4 Safety, sustainability AND PRODUCTIVITY are construction sectors biggest challenges we can help! Customers ask for Safety, Sustainability & Productivity Analyze the needs in each stage of construction Safe efficient flow of people, machines & materials How we tackle it Create Temporary Factory for the builder Early involvement with large projects Virtual planning ahead is key BENEFITS Better planning gives efficiency Improved safety No interruptions to building work Case: Järfälla swim center Early on make a virtual plan for a safe scaffolding structure, between high ceiling and deep pools Capital Markets Day

5 Sweden Market Outlook: Continued HEALTHY CONSTRUCTION ACTIVITY TO SUPPORT DEMAND for equipment rental 12% Construction output 9.9% 180 CONSTRUCTION OUTPUT BY SECTOR (INDEX) OTHER INDUSTRIAL SECTORS DRIVING DEMAND 8% 4% 3.6% General manufacturing % -3.2% 2017E 2018E 2019E 2020E Source: Euroconstruct Nov E 2018E 2019E 2020E New residential Renovation New non-residential Infrastructure Process industries Capital Markets Day

6 Sweden priorities OPTIMIZING BUSINESS SYSTEMS Simplification and clarification of internal procedures and processes Increase level of digitalization GROW WITH THE SMALL AND MEDIUM SIZED CUSTOMERS Develop our CC concept and sales management Grow market share in largest cities PREFERRED SUPPLIER TO LARGE CUSTOMERS Systematic Key Account Management Strategic partnerships with focus on safety and productivity BUILD THE BEST SUPPLY CHAIN Continue to improve productivity in logistics operation Develop assortment and processes to optimize fleet availability NO Customer CenterS (CC) below EBIT 1 Focus on performance management Provide tools for CC managers and staff to succeed A GREAT PLACE TO WORK Safety first Clear values and leadership Capital Markets Day

7 Denmark OVERVIEW # 3 MARKET POSITION 128 EMPLOYEES (FTE) Sales MIX Sales BY CUSTOMER SECTOR Industrial SMB Large Construction OTHER 13 Locations Rental Service Temporary Space SMB: Small and medium-sized constructors Large: Large constructors Net sales (MEUR) COMPaRABLE EBIT (MEUR) & MARGIN (%) COMPARABLE ROCE R R12 8% 4% -4% -8% -12% 1 5% -5% -1-15% R12 Capital Markets Day

8 Denmark MARKET OUTLOOK AND priorities % 2% Construction output % 2.8% 2.5% GROW WITH THE SMALL AND MEDIUM SIZED CUSTOMERS Develop customer service and ease of doing business with Accelerate growth in largest cities BUILD THE BEST SUPPLY CHAIN Optimize product offering and logistics model Increase level of digitalization 1% 2017E 2018E 2019E 2020E Source: EUROCONSTRUCT Nov 2017 NO Customer Centers (CC) below EBIT 1 More sales force driven Use more temporary CCs Restructuring of network in Q4, appr. 2 MEUR one-off cost A GREAT PLACE TO WORK Safety first Clear values and leadership Capital Markets Day

9 Q&A Capital Markets Day