Sandvik Tooling Group in NAFTA Continuing Growth Presented by James T. Baker
Key topics l
Tooling gaining market share
l
Sandvik Coromant #2, closing in on #1
l
PTD on road to recovery
l
Hard Materials expanding
l
Partnership selling paying off
l
Leading our industry in e-commerce
l
Investing in further growth
Sandvik Tooling in NAFTA, May 14-16, 2001, page 2
Tooling in NAFTA Vital statistics l l
37% of total NAFTA sales NAFTA investments in 2000 totaled SEK 200M (USD $20M)
l
2,200 employees
l
8 manufacturing locations
Sandvik Tooling in NAFTA, May 14-16, 2001, page 3
Sandvik Tooling World leading tool supplier to industry l
l
l
l
Sandvik Tooling in NAFTA, May 14-16, 2001, page 4
Decisive impact on customer productivity Tools, systems and knowhow for metalworking Customers: automotive, aerospace, electronics, medical, general engineering… Key driver: industrial activity
Sandvik Tooling Key issues
Top-line growth and maintained profitability
Sandvik Tooling in NAFTA, May 14-16, 2001, page 5
l
Increased market share
l
Expand the potential
Sandvik Coromant Strengths and core competencies l
Acknowledged technical leader
l
Service, support infrastructure
l
Productivity partnership attitude
l
Distribution strength - all channels
l
Superior products, innovations from R&D
l
Growing presence in key areas ü Aerospace ü Die and Mold ü Advanced materials
Sandvik Tooling in NAFTA, May 14-16, 2001, page 6
Sandvik Coromant Strengths and core competencies Capacity Expansion n Fair Lawn NJ
n Stafford TX
n Mebane NC
Investment: $21 million
Investment: $15 million
Investment: $10 million
Production: Carbide inserts
Production: Advanced materials - ceramics, CBN and diamond inserts Carbide inserts
Production: Global supplier of tooling, i.e. toolholders, milling cutters and drilling tools
• Increase capacity • Automated facility • Increase production in NAFTA
Sandvik Tooling in NAFTA, May 14-16, 2001, page 7
Sandvik CTT Strengths and core competencies l
#1 in NAFTA drilling
l
Multi-brand strategy
l
l
l
Comprehensive engineering capability Growing presence in “high end” markets Growing presence in solid carbide
Sandvik Tooling in NAFTA, May 14-16, 2001, page 8
Sandvik Hard Materials Strengths and core competencies l
l
l l
Capacity expansion (carbide rods) Superior carbide drill blanks (from R&D) #1 in PCB blanks Procera Sandvik individually-made dental crowns -thriving
Sandvik Tooling in NAFTA, May 14-16, 2001, page 9
Sandvik Tooling Market trends
l
Cemented carbide inserts and advanced materials tooling
l
High speed steel tools
l
Solid carbide tools
l
Blanks and components in cemented carbide
Total potential in NAFTA approximately SEK 40B or USD 4 billion (excl. dental crowns) Sandvik Tooling in NAFTA, May 14-16, 2001, page 10
Sandvik Tooling The brands Creating a brand is not the goal, creating brand loyalty is.
Carbide Tooling
Solid Carbide
Blanks and components
Sandvik Tooling in NAFTA, May 14-16, 2001, page 11
High Speed Steel
The importance of a brand There is a clear link between brand names, market share and ROI1) l
#1 in profitability is a function of #1 in market share
l
#1 in market share is a function of #1 in brand awareness
l
Most importantly, market share leaders enjoy… ü #1 price leadership ü #1 perception of products and services
1) Source: Harvard Business Review Sandvik Tooling in NAFTA, May 14-16, 2001, page 12
Sandvik Tooling Actions Top-line growth and maintained profitability through: l
Expanded sales force
l
Strengthen partnerships
l
Customer focused management
l
Expand and control sales channels
l
New application areas
l
Leverage R&D powerhouse - new products
l
Acquisitions
l
Tooling synergies
Sandvik Tooling in NAFTA, May 14-16, 2001, page 13
Sandvik Tooling Summary l
Doing very well in NAFTA
l
Fulfilling strategic role
l
Meeting or exceeding goals
l
Continuing aggressive strategic investments
l
Moving into high end markets
Sandvik Tooling in NAFTA, May 14-16, 2001, page 14
