Sandvik Mining and Construction

Sandvik Mining and Construction
Anders Ilstam, Group Vice President and
President Sandvik Mining and Construction
11 March 2002
Sandvik Mining and Construction
Machinery, equipment and tools for rock-excavation
2001: Sales SEK 13.5 B (USD 1.4 B)
Driltech Mission
Sandvik Tamrock
Sandvik Rock Processing
(as of Oct 1 2001)
Sandvik Materials Handling
VA-Eimco
JV Sandvik Smith
Sandvik Mining and Construction
SMC Key Figures (Yr 2001 and *pro forma)
Sales
SEK M
Employees
z Sandvik Tamrock
7 629
4 338
z VA-Eimco
2 358
1 316
z Driltech Mission
1 047
385
z Sandvik Materials Handling
1 993
932
z Sandvik Rock Processing*
1 400
876
360
131
14 787
8 073
z Sandvik Smith*
Total, proforma
Sandvik Mining and Construction
SMC - Objectives 2000Î
Top-line growth and continued profitability improvement
6% top-line and 10-15% EBIT over a cycle
z Growth
z Profitability
9 Product mix
9 Product mix
9 Customer offering (R&D)
9 Purchase costs
9 Common platform
z Structure
9 Restructure VA-Eimco
9 Production capacity
9 Acquisitions / alliances
Sandvik Mining and Construction
Sandvik Mining and Construction
Invoiced Sales 2001
...by customer segment
…by market
Materials
Handling
Mining of
Metals
Asia,
Australia
Europe
Infrastruct
ure
Coal
…by application
Africa,
Middle
East
Equipment
Tools,
spares and
services
Sandvik Mining and Construction
NAFTA
South
America
Sandvik Mining and Construction
Invoiced Sales
Operating Profit
M SEK, EBIT
M SEK
Margin
12%
1 600
1 400
16 000
14 000
12 000
10 000
8 000
6 000
4 000
2 000
0
10%
1 200
1 000
800
600
8%
6%
4%
400
200
0
97
98
99
00
0%
97
98
99
00
01
ROCE
CAPEX
M SEK
01
2%
% of sales
500
5%
25%
400
4%
300
3%
15%
200
2%
10%
100
1%
5%
0
0%
97
98
99
Sandvik Mining and Construction
00
01
20%
0%
97
98
99
00
01
World Market Potential
SEK B
Growth
MS
z Sandvik Tamrock
30
3-5%
25%
z VA-Eimco
10
2-3%
24%
4
2-3%
25%
z Sandvik Materials Handling
50
3-5%
4%
z Sandvik Rock Processing
50
2-3%
3%
z Driltech Mission
Sandvik Mining and Construction
SMC - Competition
z Sandvik Tamrock
9 Drills
Atlas Copco, Ingersoll Rand,
Furukawa
9 Loaders
Atlas Copco,CAT/ELF
9 Breakers
Atlas Copco (Krupp), Ingersoll
Rand, NPK
9 Tools
Atlas Copco, Boart
z Rock Processing
9 Metso Minerals, Krupp
Sandvik Mining and Construction
z VA-Eimco
9 Coal Machinery
JOY, Long-Airdox
9 Tools
Kennametal, Boart
z Driltech Mission
9 Ingersoll Rand
z Sandvik Materials Handling
9 Material handling
Krupp, Metso Minerals
9 Conveyor components
Continental
Underground Mining and Tunnelling
The Traditional Process
Sandvik Mining and Construction
The Roadheader Process
ICUTROC
ICUTROC
Sandvik Mining and Construction
AutoMine TM
Adding value to our customers
SYSTEM
FEATURES
z Mobile fleet automation and
process control
z AUTOMATIC TRAMMING
z AUTOMATIC DUMPING
z Customer Benefits
z BUCKET FILLING WITH
TELEOPERATION
9 Better control of oreflow
9 Safety
9 Productivity, target is to
increase utilization by 20%
9 Cost savings (operating cost)
• IRR > 30% in feasibility studies
AUTOMINE
SUBSYSTEMS
z TORO WITH INTEGRATED
CONTROL SYSTEM
z InfraFREE NAVIGATION
z COMMUNICATION SYSTEM
z OPERATOR STATION
z MISSION CONTROL
SYSTEM
Sandvik Mining and Construction
• Payback < 3 years in feasibility
studies
Alpine Reef Miner
➨ Height 1,1 m
➨ High automation
Sandvik Mining and Construction
➨ Platinum milling
➨ High potential
Focus on aftermarket
Sandvik Mining and Construction
Acquisitions
z Sales & Marketing
9 Suh Jun Trading (S.Korea), Former agent in Ghana, JV in Zambia
z Brøyt (Norway)
9 Hydraulic loaders, sales SEK 50 M
z BPI, Neuson (Austria)
9 Drill rigs, sales SEK 120 M, 30 employees
z Beltreco Ltd. (Australia)
9 Leading service company, sales SEK 450 M, 400 employees
z Bafco Mineria y Servicios (Chile)
9 Leading service company, sales SEK 85 M, 180 employees
z Jointly owned company with US-based Smith International
z Parts of Svedala Î Sandvik Rock Processing
Sandvik Mining and Construction
Sandvik Rock Processing parts of Svedala
z Crushers, screens, mobile crushing units
z Sales SEK 1 400 M (EUR 150 M)
z Employees 900
z Production units in Svedala, Arbrå, Chauny
z 100 fieldsales people
z Acquisition of assets SEK 550 M incl. goodwill
z Consignement stock SEK 300 M
z Earnings per share rise as of 2002
Sandvik Mining and Construction
The customer process
Through
Svedala
Sandvik Mining and Construction
A typical crushing & screening plant
Feed
Grizzly
Feeder
Jaw
Crusher
Tunnel
Feeder
Hydrocone
Crusher
Vibrating
Screen
Products
Sandvik Mining and Construction
The Feed Material
23 billion tons/year
15%
5%
7%
17%
5%
27%
24%
Sand & gravel
Oil
Iron ore
Sandvik Mining and Construction
Stone
Cement
Coal
Others
Sandvik Smith
z Roller cone bits
z 50% but 100% consolidation in Sandvik
z Annual sales SEK 360 M
z Employees 200
z HQ in Köping, Sweden
z Production units in Sweden, USA, Italy
z Development, production, marketing and service
Sandvik Mining and Construction
Sandvik Smith products
z Sealed and air-cooled roller
cone bits for the mining and
construction industries
z High performance for
increased customer
productivity
z The market’s most
comprehensive product
range
Sandvik Mining and Construction
SMC is well positioned
z Broad geographic and end-market diversity
9 Infrastructure/engineering projects
9 Mining of metals
9 Mining of coal
9 Materials handling
z Increasing number of service contracts
z Strong brands and new products
z Flexible production - outsourcing vs in-house
¾ Action programs for sustained high profitability
z Continued efficiency activities
z Acquisitions
z Take market shares
Sandvik Mining and Construction
Thank you
Sandvik Mining and Construction