The Japan Experience2006 - JETRO · METTLER TOLEDO Slide 2 Confidential / 11/8/2006 METTLER TOLEDO...
Transcript of The Japan Experience2006 - JETRO · METTLER TOLEDO Slide 2 Confidential / 11/8/2006 METTLER TOLEDO...
METTLER TOLEDO
11/8/2006Slide 1 Confidential /
“The Japan Experience”
Karl M. LangHead Asia/Pacific
Mettler-Toledo International Inc.8606 Greifensee
Switzerland
METTLER TOLEDO
11/8/2006Slide 2 Confidential /
METTLER TOLEDO – a global company
The GROWTH challenge
Analyses Market Growth and Market Penetration
METTLER TOLEDO in Asia/Pacific
METTLER TOLEDO in Japan
Japan – Experience
Japan – Future challenges
Summary
Agenda
METTLER TOLEDO
11/8/2006Slide 3 Confidential /
METTLER TOLEDO – a global company
The GROWTH challenge
Analyses Market Growth and Market Penetration
METTLER TOLEDO in Asia/Pacific
METTLER TOLEDO in Japan
Japan – Experience
Japan – Future challenges
Summary
Agenda
METTLER TOLEDO
11/8/2006Slide 4 Confidential /
A global company
METTLER TOLEDO• 1.5 bio USD sales• 10’00 employees• HQ in Greifensee, Switzerland• 1996: Buyout from Ciba (Novartis)• NYSE: MTD (IPO 1997)• Precision instruments for use in
laboratories, manufacturing, and food retail
METTLER TOLEDO
11/8/2006Slide 5 Confidential /
… your toothpaste contains an average of more than 50 components?
The mix is determined with the help of our analytical balances.
And it’s accurate right down to the microgram!
Did You Know That ...
METTLER TOLEDO
11/8/2006Slide 6 Confidential /
Did You Know That ...
... beer quality has been monitored since the beginning of brewing?
Today it’s an automated process with our sensors.
Hops and malt would be lost without them!
METTLER TOLEDO
11/8/2006Slide 7 Confidential /
Did You Know That ...
... your child can bite into an ice creamwithout any worry of popping out a tooth?
Every day – with no ifs, ands or buts!
Our detectors spot even the smallest foreign objects.
METTLER TOLEDO
11/8/2006Slide 8 Confidential /
Did You Know That ...
… Fahim weighed 140 kg a week after he was born? And his father weighs over 5 tons!
Once a month, all of the elephants in the zoo are weighed on our scales.
And the terminal delivers all the big numbers.
METTLER TOLEDO
11/8/2006Slide 9 Confidential /
Did You Know That ...
... our self service scale knows apples from oranges
It all adds up to a more pleasant experience!
The built-in camera makes your selection easier.
METTLER TOLEDO
11/8/2006Slide 10 Confidential /
Did You Know That ...
METTLER TOLEDO
11/8/2006Slide 11 Confidential /
Global Manufacturing, Sales & Service
Innovation Centers MT Partners
MT Sales & Service Organizations
Global manufacturing strategy with focused innovation centersApprox. 4’800 employees in sales & service in 35 countriesGlobal manufacturing strategy with focused innovation centersApprox. 4’800 employees in sales & service in 35 countries
METTLER TOLEDO
11/8/2006Slide 12 Confidential /
METTLER TOLEDO – a global company
The GROWTH challenge
Analyses Market Growth and Market Penetration
METTLER TOLEDO in Asia/Pacific
METTLER TOLEDO in Japan
Japan – Experience
Japan – Future challenges
Summary
Agenda
METTLER TOLEDO
11/8/2006Slide 13 Confidential /
Group Sales and Sales per Region
in mUSD
1482
936 10
96 1148 12
14 1304 14
04
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
1065
878
849
Americas 41%
Europe41%
Asia / RoW18%
METTLER TOLEDO
11/8/2006Slide 14 Confidential /
METTLER TOLEDO – a global company
The GROWTH challenge
Analyses Market Growth and Market Penetration
METTLER TOLEDO in Asia/Pacific
METTLER TOLEDO in Japan
Japan – Experience
Japan – Future challenges
Summary
Agenda
11/8/2006Slide 15 Confidential /
METTLER TOLEEO 30% 34% 30% 3%
Americas Europe Asia-Pacific
3%
Oth
er
Bn US$ 7,329
United States
Canada
Mexico
BrazilArgentina
ChileColombia VenezuelaPeru
Germany
France
Italy
United Kingdom
Spain
NetherlandsSwitzerland
TurkeySwedenIrelandAustriaPolandBelgiumFinland
DenmarkPortugal
Czech RepublicGreeceNorwayHungary
Japan
China
South Korea
IndiaTaiwanAustraliaIndonesiaThailand
MalaysiaSingaporePhilippinesPakistanNew Zealand
Hong Kong, China
Rus
sia
Isra
elSo
uth
Afric
aSa
udi
Arab
iaIra
n
Egypt
Algeria
Oth
er
100%
80%
60%
40%
20%
0%
RO
W
50% of worldwide Manufacturing GDP80% of worldwide Manufacturing GDP
Manufacturing GDP by Region
11/8/2006Slide 16 Confidential /
METTLER TOLEEO
ArgentinaCanada Mexico Brazil
UnitedStates
SwitzerlandNetherlandsIrelandPolandUnited KingdomItaly
SpainFrance
Germany
AustraliaIndonesiaThailandTaiwanIndia
South Korea
Japan
China
Americas Europe Asia-Pacific
79
52
113
0
50
100
150
200
240
50% of worldwide manufacturing growth
80% of worldwide manufacturing growth
Real Manufacturing GDP Growth(in Bn US$ per year, Ø 2003-05)
Real Manufacturing GDP Added (annually)
11/8/2006Slide 17 Confidential /
METTLER TOLEEO
METTLER TOLEDO – a global company
The GROWTH challenge
Analyses Market Growth and Market Penetration
METTLER TOLEDO in Asia/Pacific
METTLER TOLEDO in Japan
Japan – Experience
Japan – Future challenges
Summary
Agenda
11/8/2006Slide 18 Confidential /
METTLER TOLEEO
Growth Customer Processesgrowing economiesunder-penetrated marketsuncovered territories
Cost Innovation Processes (mainly China)low-cost manufacturinglow-cost R&Dlow-cost suppliers
Objectives Asia/Pacific
11/8/2006Slide 19 Confidential /
METTLER TOLEEO Asia – Sales & Service
Taipei
Ho Chi Minh City
Bangkok
MumbaiHong Kong
Seoul
Changzhou
Shanghai
Kuala Lumpur
Singapore• 13 Sales & Service Country Operations• 3 R&D and Manufacturing Operations• > 3000 employees
CAGR > 20%
METTLER TOLEDO
11/8/2006Slide 20 Confidential /
METTLER TOLEDO – a global company
The GROWTH challenge
Analyses Market Growth and Market Penetration
METTLER TOLEDO in Asia/Pacific
METTLER TOLEDO in Japan
Japan – Experience
Japan – Future challenges
Summary
Agenda
METTLER TOLEDO
11/8/2006Slide 21 Confidential /
Sales & Service Japan
Sales & Service Japan47 employees in sales, marketing and engineering35 employees in service
Our own experienced and highly qualified sales and service specialistsadd value to the processes of our customersOur own experienced and highly qualified sales and service specialistsadd value to the processes of our customers
Tokyo
Ho Chi Minh City
Kuala Lumpur
Taipei
Bangkok
Mumbai
Shanghai
Hong Kong
Seoul
Changzhou Tokyo
Kuala Lumpur
Taipei
Bangkok
Mumbai
Shanghai
Hong Kong
Seoul
Changzhou Tokyo
Singapore
METTLER TOLEDO
11/8/2006Slide 22 Confidential /
METTLER TOLEDO in Japan (1/2)
1953: 1st METTLER balance sold in Japan.1953: Agency Agreement with Siber Hegner. Siber Hegner is the
prime partner for MT in Asia.Successful development of MT business in Asia.Focus on “easy to sell” products.Miss to develop strong strategic positions for many “new”product lines (agents unwilling to pre-invest).
1991: MT decides to focus on business development in A/P.Setup of 1st MT operation in Japan within Ciba Takarazukapremises (MT part of Ciba since 1980).Continuous expansion with product lines not marketed viaSiber Hegner.
METTLER TOLEDO
11/8/2006Slide 23 Confidential /
METTLER TOLEDO in Japan (2/2)
1997: Cancellation of agency contract with Siber Hegner.Transfer of Siber Hegner handled business to MT-JP including most MT related employees.Triggers agency transfers in other Asian countries.Siber Hegner subsequently becomes a competitor by introducing competing products.
2006: MT-JP with 120 employees, >4bJPY in sales, HQ in Tokyo, BO in Osaka, several SOHOs in other prefectures.Responsible for sales of all MT Laboratory, Process Analytics and Industrial products.Sales growth in low single digits.Food Retail products not introduced in Japan (Retail offers hardly any niches, dominated by Japanese competitors).Additional sales via OEM partner in the range of ~1bJPY.
METTLER TOLEDO
11/8/2006Slide 24 Confidential /
METTLER TOLEDO – a global company
The GROWTH challenge
Analyses Market Growth and Market Penetration
METTLER TOLEDO in Asia/Pacific
METTLER TOLEDO in Japan
Japan – Experience
Japan – Future challenges
Summary
Agenda
METTLER TOLEDO
11/8/2006Slide 25 Confidential /
Japan - Experience
Cost of doing business:
METTLER TOLEDO
11/8/2006Slide 26 Confidential /
Japan - Experience
Cost of doing businessEurope Japan
85
5147
Distribution(local)
Avg. discount
TIB
Supplier
100
List Price
Distribution(local)
Avg. discount
TIB
Supplier
80
4037
100
21%
~40%
~50%
METTLER TOLEDO
11/8/2006Slide 27 Confidential /
Japan - Experience
Cost of doing business: Higher
Change Management: Very resistant to change (anything)
METTLER TOLEDO
11/8/2006Slide 28 Confidential /
Japan - Experience
Cost of doing business: Higher
Change Management: Very resistant to change (anything)
People: Diligent, patient, loyal
METTLER TOLEDO
11/8/2006Slide 29 Confidential /
Japan - Experience
Cost of doing business: Higher
Change Management: Very resistant to change (anything)
People: Diligent, patient, loyal
Timelines: How to explain to HQ?Impatience kills many good initiatives
METTLER TOLEDO
11/8/2006Slide 30 Confidential /
Cost of doing business: Higher
Change Management: Very resistant to change (anything)
People: Diligent, patient, loyal
Timelines: How to explain to HQ?Impatience kills many good initiatives
Customer Satisfaction: A great learning experience much beyond Japan
Japan - Experience
METTLER TOLEDO
11/8/2006Slide 31 Confidential /
METTLER TOLEDO – a global company
The GROWTH challenge
Analyses Market Growth and Market Penetration
METTLER TOLEDO in Asia/Pacific
METTLER TOLEDO in Japan
Japan – Experience
Japan – Future challenges
Summary
Agenda
METTLER TOLEDO
11/8/2006Slide 32 Confidential /
Japan – Current Challenges
Productivity:Segregation of tasks: Preparation (M) and Execution (S)Concentration (Administration)Automation (ERP, CRM, SFA, SMS)
Change is culture (mindset)
People:Release female powerTraining and development (management, employees)
Market penetration:Organic: displacing competitors (cost)Co-operation (patience)Joint Ventures (challenging to manage)Acquisitions (financial hurdles)
METTLER TOLEDO
11/8/2006Slide 33 Confidential /
METTLER TOLEDO – a global company
The GROWTH challenge
Analyses Market Growth and Market Penetration
METTLER TOLEDO in Asia/Pacific
METTLER TOLEDO in Japan
Japan – Experience
Japan – Future challenges
Summary
Agenda
METTLER TOLEDO
11/8/2006Slide 34 Confidential /
Timing:Phase 1 – Trading house (agency contract)Phase 2 – In parallel, learning and getting familiarPhase 3 – Business transfer, building for long term growth
Success:With products and solutions launched early in the life cycleWith “exclusive” products and solutions (not already covered by locals)
Management:Japanese with experience in Western companies
Productivity, Change, Cost:A constant fight
Penetration:Persistence
Summary
METTLER TOLEDO
11/8/2006Slide 35 Confidential /
ZusammenfassungHerzlichen Dank fürIhre Aufmerksamkeit
Thank you for your attention
www.mt.com