20161115 Capital Markets Day 2016 - Compressor Technique · Atlas Copco Capital Markets Day 2016...

COMPRESSOR TECHNIQUE

Atlas Copco Capital Markets Day 2016

Nico Delvaux, Business Area President

AGENDA

1. Facts in Brief

– Compressor Technique

– Financial performance

2. Profitable growth

– Presence

– Innovation

– Service

– Operational excellence

– People

3. Summary

Compressor Technique


2

1. Facts in Brief- Compressor Technique

- Financial performance

2. Profitable growth- Presence

- Innovation

- Service

- Operational excellence

- People

3. Summary

FACTS IN BRIEF



3



Global leader

providing innovative

compressed air and

air and gas treatment

solutions for

sustainable

productivity


4

Profitable growth

with asset light

and agile

organization

Compressors




5

Medical Electronics Chemical /petrochemical …and more

Textile Wood & paper Food & beveragesAssembly

Air & gas treatment solutions

DEMAND DRIVERS

Global growth, industry capital

expenditures/investments

Energy efficiency and productivity

requirements from the industry

Total life cycle cost

Total solutions

Increased demand for services

Environmental awareness



6

OUR DIFFERENTIATORS

Brand name and reputation

Size and global/local presence

Master all technologies

Full value proposition

Innovation leader

Service, largest installed base



7

Oil-injected

screw technologyTurbo technology

Piston technology

Oil-free screw technology

Scroll technologyTooth technology

COMPRESSOR TECHNIQUE (EXCLUDING VACUUM)

0%

5%

10%

15%

20%

25%

0

10 000

20 000

30 000

40 000

50 000

2008 2009 2010 2011 2012 2013 2014 2015 Sept.2016

Revenues, MSEK

Operating margin, %

Adjusted operating margin, %



8

Financial performance since 2008

Not restated for the move of Specialty

Rental to Construction Technique in 2012.

12 months figures.

COMPRESSOR TECHNIQUE (EXCLUDING VACUUM)

In Brief

Leverage investments in presence and innovation

Grow market share and customer share

Strengthen service platform and extend service offer

Support organic growth with more acquisitions

Q3 2016

Order growth 3%, flat organically

– Growth in industrial compressors

– Tough market conditions for gas and process

compressors

– Continued growth for service

Orders, revenues and operating margin*



9

0%

5%

10%

15%

20%

25%

30%

0

2 000

4 000

6 000

8 000

10 000

12 000

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Orders received, MSEK Revenues, MSEK

Operating margin, %

ROCE

68%

*Restated figures

PRESENCE



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STRATEGY FOR GROWTH

Develop core for equipment and service

Expand core

Complement organic growth with acquisitions

Innovation



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EXPAND CORE



12

Extend product offering

Build competence

Global network

Low pressure

Dedicated product offering

Dedicated organization

Focus on logistics

Marine business

Extend partnerships

Competence center

Dedicated resources

Railway compressors

Dedicated division

Geographical expansion

Offering for all standards

Medical business

EXPAND CORE:

PROFESSIONAL AIR

COMPRESSOR MARKET – PISTON AND SCREW

PISTONS ROTARY SCREWS

11kW 30kW 90kW200W 7kW XX MW

Mark

et

Siz

e i

n U

nit

Un

it V

alu

e

High Distribution Channel Density

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MARKET SEGMENTS

INDUSTRY CONTRACTOR DENTALAUTOMOTIVEWORKSHOP AGRICULTURE CONSUMER



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THE WORLD OF PROFESSIONAL AIR



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PISTON COMPRESSOR ACQUISITIONS

FIAC MARCH 2016

Italian manufacturer of mainly piston compressors

– Assembly in Italy, China and Brazil

– Sales to large importers in more than 110 countries

Large range of Piston Block Technology

Revenues of MSEK 640 (2014) and about

400 employees

SCHNEIDER DRUCKLUFT AUGUST 2016

German manufacturer of mainly piston compressors

– Assembly in Germany and Czech Republic

– Indirect sales in Germany, Czech Republic and Slovakia

Revenues of MSEK 250 (2015) and about

110 employees



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PROFESSIONAL AIR OPPORTUNITIES



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GLOBAL MANUFACTURING PRESENCE

CUSTOMER SHARE….EXTEND USER EXPERIENCE

MA

R 2

016

AU

G 2

016

LEVERAGE RECENT ACQUISITIONS

E-BUSINESS

ACQUISITIONS



19

Presence

Expand

the core

Product

range &

Technology

Full value

chain

INNOVATION



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LIFE CYCLE COST COMPRESSOR INSTALLATION



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Energy cost

Maintenance cost

Investment cost

INNOVATION DRIVERS



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Total

cost of

ownership

Cost

Noise

and

footprint

Legislation

Local

requirementsTechnology

changes

INNOVATION: DUAL OFFER STRATEGY



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For the “Total cost of ownership” market – which is features driven

Full feature, value adding options, premium priced

INNOVATION: MODULAR DESIGNBasic and premium range

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For the “value for money” market – which is price driven

No full feature, basic design and features, competitive pricing

Twin tower adsorption dryersCommon vessel platform for all variants

INNOVATION: SIMPLIFY



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Heater Blower Purge

HeatlessHeated purge

Heater Blower Purge

Heated Zero Purge

Heat Of Compression


Heater Blower Purge

Heated Zero Purge

Heat Of Compression


Heater Blower Purge

Heated Zero Purge

Heat Of Compression

Heatless

Heated Zero Purge

Heat of Compression

Heated Purge

50% energy

savings on

average

Easy service

8% more free

air delivery

50% footprint

reduction

Maximum

uptime

Lowest total cost

of ownership

“Big business in

a small package”

UPSCALING PROVEN GA VSD+ DESIGN

37-75kW In production Compressor Technique


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SERVICE



27

SERVICE AS A STRATEGIC GROWTH PILLAR

Before 2008 From 2008 onwards

Division 1 Division 2 Division 3

Service Service Service

Division 1 Division 2 Division 3 Service

Division

SERVICE DIVISION

MarketingSales

OperationsTechnicalSupport



28

Inte

nsity R

ela

tio

n

Time

Equipment Sales & Reactive Service

Equipment Sales

Reactive Service

Equipment Sales

Inte

nsity R

ela

tio

n

Time

Pro-active Customer Relationship Management

Full package of Equipment,

Service, Parts & Training

SALES AND CUSTOMER RELATIONSHIP MANAGEMENT



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GLOBAL SERVICE SUPPORT – 24 HOUR OPERATION

Pro-active support anywhere and anytime

Energy management & air optimization

Superior solutions to reduce operational cost

and increase up-time

Committed, trained and experienced people

Close, long-term customer relationships



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>140 countries

> 8,600 Employees

> 4,500 Service Technicians

TACTICAL MATRIX

100%

1 to 1 ratio 100%

Custo

mer

Share

Climbing the Service

Ladder

2

PopulationManagement 1



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GROW OUR MARKET PENETRATION

SERVICE CONTRACT CHARGEABLE SERVICE NOT SERVICED



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Hig

hLow

High LowLIFE CYCLE COST

MA

CH

INE

AV

AIL

AB

ILIT

Y

ADDING CUSTOMER VALUE THROUGH THE SERVICE LADDER

SPARE PARTS

AD-HOC

FIXED PRICE

SERVICE PLANS

ADVANCED SERVICES



33

SERVICE PROVIDER OF THE UTILITY ROOM



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Service contract on the compressor room

Energy saving solutions AIRScan, Central Controller,

Energy Recovery

Compressor monitoring

SMARTLINK

Service on vacuum installations

Piping solutions

Second hand equipment

Our goal: 100% customer share

EVERYTHING CONNECTED



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SMARTLINK INSTALLATIONS

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HOW TO ORGANIZE FOR CONNECTED MACHINES

Digital transformation

– From Big Data to Business value

Smart analytics in diagnostic centers

New competences required

– Data scientist

– Software development



37

DIAGNOSTIC CENTERS



38

STRATEGIC DIRECTION CONNECTIVITY



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Machine modeling based on

connectivity data

Easy machine follow-up/field

testing

Machine health profiling

Pro-active response on

machine warnings

Convert SMARTLINK leads

to Service Sales

New Service Products

focused on availability

IMPROVE MACHINE DESIGNINCREASE PRODUCTIVITYDRIVE REVENUE1 2 3

CONNECTIVITY



40

>69.000CONNECTIONS

SERVICE LEADSMORE

REVENUEADDITIONAL

LOYALTYCUSTOMER

UPTIME

>98%

OPERATIONAL EXCELLENCE



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SERVICE EXCELLENCE

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5

6

OPERATIONALEFFICIENCY

IMPROVEMENT

1

2

4 3

CENTRALIZED PLANNING

Centralized planning by planners

Forward planning of service contracts

Logistics integration

MOBILE SOLUTIONS

Mobile solution for technicians

Real time information flow

Knowledge management

GPS tracking of vehicles

STANDARDIZED SERVICE PRODUCTS

Quoting, selling and executing standardized service products

Increasing transparency

OPERATIONAL REPORTING

Service performance metrics

Reduce time to information

MARKET EFFICIENCY

Installed base management

Territory management

Lead generation

ADMINISTRATION REDUCTION

Reduce back office load

Automate, simplify, accelerate

Improve interface



SERVICE EXCELLENCE

Machine DataMachineMonitoring

ServiceContracts

UrgentBreakdown

Service JobAllocation

ConnectedNavigation

Voice Picking

OvernightDelivery

Daily DirectDelivery

OptimizedTravel Route

Service JobExecution

Service JobReporting

PARTS



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AUTOMATION & LEAN MANUFACTURING



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EFFICIENCY



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Automation LeanRationalisation

footprintCRM system for sales and service

PEOPLE



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PEOPLE

Our most important asset

Time to competence

Diverstity

– Gender

– Culture

Lifetime employment and lifetime learning



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SUMMARY



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SUMMARY

Leverage investments in presence and innovation

Grow market share and customer share

Strengthen the service platform and extend the service offer

Support organic growth with acquisitions

The organization is strong and “fit for more”



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20161115 Capital Markets Day 2016 - Compressor Technique · Atlas Copco Capital Markets Day 2016...

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Transcript of 20161115 Capital Markets Day 2016 - Compressor Technique · Atlas Copco Capital Markets Day 2016...