Oerlikon Segment Coating

Transcription

1 Oerlikon Segment Coating August 2013 Dr. Hans Brändle, CEO Segment Coating Page 1 05/08/2013

2 Key investment highlights 1 Attractive growth market megatrend towards advanced surface engineering 2 Undisputed global market leader with non-replicable coating service network 3 Geographical expansion and operational excellence as key success factors 4 Undisputed technology leader: Innovation at the core of the Balzers DNA 5 Sustainable growth and profitability for more than a decade Page 2 07/08/2013

3 1 Megatrend towards advanced surface engineering Technologies for engineering material properties of metals Hardening Thermal Diffusion PVD (a) CVD (b) Hard Chroming Thermal Spray Hardness Toughness Bulk properties Surface properties Wear resistance Friction Technology trends PVD substitutes CVD PPD TM replaces hard chroming (a) PVD = Physical Vapor Deposition (b) CVD = Chemical Vapor Deposition Page 3 07/08/2013

4 1 Thin film technology: fastest growing advanced surface solution Common technology Plasma Human hair 0.05 mm 50 x thin-film mm mm Plasma-assisted deposition of thin-films under high vacuum Page 4 07/08/2013

5 1 Thin film technology as an attractive growth market Needs Market characteristics Dynamic growth of applications Sustainable market growth: > 2 times GDP growth; CAGR ~7% Megatrend towards advanced surface engineering Clean surface technologies as the market standard of tomorrow Increase productivity Reduce friction and wear Change to clean surface solutions Entry barriers R&D as key entry barrier in high-end applications Customer proximity - and thus high density network as success critical for tool coating services Meeting particular requirements of highly diverse industrial applications Competition Limited number of high-end suppliers Few service providers with global footprint Page 5 07/08/2013

6 1 Unique benefits of thin film coatings Benefit on TOOLS for metal processing Increased wear resistance - enables higher productivity and leads to lower cost per piece - improves life time Benefit on COMPONENTS for the automotive and mechanical engineering market Reduced friction - enables better fuel efficiency Increased wear resistance - enables higher load capacity - extends life time - improves reliability Page 6 07/08/2013

7 Key investment highlights 1 Attractive growth market megatrend towards advanced surface engineering 2 Undisputed global market leader with non-replicable coating service network 3 Geographical expansion and operational excellence as key success factors 4 Undisputed technology leader: Innovation at the core of the Balzers DNA 5 Sustainable growth and profitability for more than a decade Page 7 07/08/2013

8 2 Non-replicable network of 92 coating centres in 33 countries close to our customers # of coating centres Emerging Markets Established Markets per July 2013 Page 8 05/08/2013

9 2 48h service as a standard: the coating service cycle of Oerlikon Balzers Pickup or parcel service ~1 day Customers Automotive Tooling ~1 day Pickup or parcel service Fundamentals Adding value to the customer s product: 1. Receive parts 2. Coat parts 3. Send parts back to same customer Key success factors Delivery time Constant quality in product and service ~0.5 to 3 days Goal Just in time < 48h service (requires customer proximity < 200km) Coating Oerlikon Coating JGC Presentation, June 23, 2009 Page 9 07/08/2013

10 2 One-stop-shop for reconditioning as natural expansion of existing business model Production Example: a drill can be reconditioned up to 10 times Logistics One-stop-shop for tool reconditioning Recoating Regrinding Page 10 07/08/2013

11 Key investment highlights 1 Attractive growth market megatrend towards advanced surface engineering 2 Undisputed global market leader with non-replicable coating service network 3 Geographical expansion and operational excellence as key success factors 4 Undisputed technology leader: Innovation at the core of the Balzers DNA 5 Sustainable growth and profitability for more than a decade Page 11 07/08/2013

12 3 Strong footprint in emerging markets Emerging markets as growth drivers Early mover: Expansion into emerging countries Sales: Emerging markets drive growth India Korea Singapore Brazil Argentina Thailand Hungary Turkey Poland Romania China Indonesia Russia Malaysia 12-m-trailing; March 08 = Emerging Countries Established Countries Mexico Czech Rep Total Sales per Region Accelerated shift to Asia Extraordinary growth of China operations HanZhong Chengdu Chongqing WenLing Jinan % 21% 60% 31% 20% 49% Suzhou Tianjin DongGuan Xi An Wuhan Changchun Europe Americas Asia * Page 12 07/08/2013 * Size of Germany as comparison

13 3 Operational excellence: Internal benchmarking as key success factor Ranking Gross Profit per Coating Centre 2006 & 2012 (adjusted by depreciation) Ø 2012 Δ +~800 bps Ø top centres > bps Next 25 centres > bps GPDA 2012 GPDA 2006 Page 13 05/08/2013

14 Key investment highlights 1 Attractive growth market megatrend towards advanced surface engineering 2 Undisputed global market leader with non-replicable coating service network 3 Geographical expansion, operational excellence as key success factors 4 Undisputed technology leader: Innovation at the core of the Balzers DNA 5 Sustainable growth and profitability for more than a decade Page 14 07/08/2013

15 4µm 4 Oerlikon Balzers as pioneer for tribological thin films 1979: Oerlikon Balzers accomplishes breakthrough for hard, wear resistant thin films, deposited at temperatures below 500 C. Advantage: exact replication of surface (e.g. sharp edges); homogenous thin film with defined texturing ; lower deposition temperature than CVD Technology used: reactive PVD (also called Ion-Plating) Thin and homogeneous film High edge definition Page 15 07/08/2013

16 4 Innovation at the core of Oerlikon Balzers DNA PECVD 2000 Cathodic Arc IONITRON 1979 Sputtering Page 16 07/08/2013

17 4 epd for automotive exterior: unlimited corrosion resistance & exiting new features i.e. Front Grills: Chrome effects (gloss, mat) Back lightning Radar transparent Dark chrome i.e. Mirror Housings: Translux (hidden turn light) i.e. Door Handles: RF-transparent for key-less go Back lightning i.e. Door panels: Highly resistant regarding corrosion (Russian mud) i.e. Bumper panels: Straight production process > allows usage of flexible parts which can be bent to final curvature during assembly Page 17 07/08/2013

18 4 Thin film technology about to enter the aerospace market Page 18 07/08/2013

19 4 The smooth revolution: S3p as the holy grail of thin film technology? Rough coatings: a long lasting problem S3p as the unique solution Over more than a decade the industry has made attempts to deposit hard and smooth coatings Smooth coatings: a brilliant idea industrialized S3p as the solution State of the art: arc evaporated coatings end mill chip flute, drill end mill chip flute, drill microdrill <1mm surface roughness microdrill <1mm surface roughness competition Page 19 07/08/2013

20 Key investment highlights 1 Attractive growth market megatrend towards advanced surface engineering 2 Undisputed global market leader with non-replicable coating service network 3 Geographical expansion and operational excellence as key success factors 4 Innovation at the core of the Balzers DNA 5 Sustainable growth and profitability for more than a decade Page 20 07/08/2013

21 HY1 5 Sustainable CAGR combined with high profitability for more than a decade Sales development Profit development mchf Sales actual Sales in LC CAGR > 7% 30% 20% % 0% EBIT% EBITDA% 0-10% Market leadership Technology excellence Constant and high service quality Continuously following our customers (present in 33 countries to date) Continuously setting new industrial standards Standardized technology and business processes / Constant and high product quality Performance driven management of a widely spread multi-cultural organization Page 21 07/08/2013

22 6 Our leadership philosophy: think global act local Global management team Responsible for: Global strategy, technology, standardized business processes, leadership pipeline 23 local management teams 92 coating centres in 33 countries ~ employees Responsible for: Local market, local P&L, local strategy Advantage Distributed leadership stabilizes the overall performance Distributed leadership and standardized business processes leverage best of global and local Oerlikon Coating JGC Presentation, June 23, 2009 Page 22 07/08/2013

23 5 Managing a high-performing decentralized & multi-cultural organization as key challenge balzers.experience 2011: multi-cultural key event employees from worldwide locations visited Balzers for the first time Page 23 07/08/2013

24 5 Unique DNA enabling further expansion Balzers DNA sequences Balzers key success factors Innovation Established pioneer with ability to industrialize own and adapted innovations and technologies Balzers continuously sets industrial standards Service orientation Service-minded company culture nurtured by daily feedback of key customers Coating Services as sustainable and profitable business model Multi-cultural mindset Ability to develop and manage a highperforming decentralized & multi-cultural organization Unique footprint in fast growing emerging markets Operational excellence Ability to standardize and validate processes and continuously improve the operational performance by benchmarking all sites/coating centers Consistent quality at high performance level in all coating centers worldwide Page 24 07/08/2013

25 5 Current strategy focus on sustainable and profitable growth Sequoia Implementing organic growth strategy Focus Components Focus Asia / China Driving Innovation String-of-Pearls Acquiring (small) companies fitting into the strategy Successfully integrated acquired pearls Samputensili IT 05 Gear cutting Goldstar US 06 Gear cutting VST Keller DE 07 Forming tools PPD Technopoli BR 07 Polishing Market share Market share Technology Technology Suomen Plasmapinta FI 08 Local market Hartec DE 10 epd on plastics Rox AT 13 Regrinding Market share Technology Technology Page 25 07/08/2013

26 Key take away 1 Attractive growth market megatrend towards advanced surface engineering 2 Undisputed global market leader with non-replicable coating service network 3 Geographical expansion and operational excellence as key success factors 4 Undisputed technology leader: Innovation at the core of the Balzers DNA 5 Sustainable growth and profitability for more than a decade Page 26 07/08/2013