Construction and Mining Technique - Committed to … · 2018-02-20 · – Tunnelling and road...

Construction and Mining Technique

Björn Rosengren

1

Capital Markets Day November 12, 2003 www.atlascopco-group.com

Construction & Mining Technique


0

5 000

10 000

-98 -99 -00 -01 -02 -03Sept

Revenues Operating profit

MSEK

7.7% 6.9% 9.2% 10.2% 8.9% 7.7%

Construction and Mining TechniqueSeptember 200312 month figures

North America

Asia/Australia

Europe

South America

Africa/ Middle East

43%

17%

18%

8%

14%

9.8%* 9.1%*

%* Excluding restructuring costs



Construction> 50% of Business Area– Tunnelling and road

construction– Dam construction – Quarrying– Breaking and demolition– Ground engineering

Demand keys– Infrastructure- and public

investments– Non-building construction

activity

Mining

< 50% of Business Area– Production and

development work− Underground and

surface mining

– Loading and haulage– Exploration drilling

Demand keys– Mining machine

investments– Ore production

Markets / Customers

2


Construction & Mining TechniqueUnderground Drilling Equipment


Södra Länken


Södra länken, connecting the southern suburbs of Stockholm, is the largest road tunnel system ever built in Sweden.

Excavated rock volume 2 million m3

Total length of tunnels 16.6 km

Construction period 1998 - 2004


Construction & Mining TechniqueLHDs and Trucks

3


Integration of Wagner into ÖrebroFocus


Wagner new product range

Increased investments in R&D

New product range in 5 years

Focus


Construction & Mining TechniqueSurface Drilling Equipment

4


Construction & Mining TechniqueRock Drilling Tools


Rock Drilling Tools

Shanks andDTH-bits

Rodplant

Hammerplant

Östersund

SouthAfrica

Fagersta

Closure of Östersund Plant


Construction & Mining TechniqueGeotechnical Drilling Equipment

5


Products

1992

ProductsTerritory

1998

ProductsTerritory

2000

ProductsTerritory

2001

ProductsTerritory

2003

All acquisitions are operating under the Atlas Copco brand

Geotechnical Drilling Equipment in 11 years


Construction & Mining TechniqueConstruction Tools


Construction ToolsKrupp - further implementation of synergies

6



-3000

0

3000

6000

9000

9012 9112 9212 9312 9412 9512 9612 9712 9812 9912 0012 0112 0212 0312-300

0

300

600

900

Revenues, 12 month values, MSEK (left axis)

Earnings before interest and tax, MSEK (right axis)

Earnings before interest and tax before restructuring costs in Wagner, MSEK (right axis)

September 200312 month figures


Construction and Mining Technique ROCE


0%

5%

10%

15%

20%

25%

30%

98 Q

4

99 Q

1

99 Q

2

99 Q

3

99 Q

4

00 Q

1

00 Q

2

00 Q

3

00 Q

4

01 Q

1

01 Q

2

01 Q

3

01 Q

4

02 Q

1

02 Q

2

02 Q

3

02 Q

4

03 Q

1

03 Q

2

03 Q

3

ROCE, excl. restructuring costs ROCE


Modular design conceptExample surface drill rigs ROC D, F and L

7


Research and Development

Years

0

5

10

15

1990 Today

Underground drill rigs Surface drill rigs

Average product age - drill rigs


Flow ManufacturingExample surface drill rigs


Aftermarket - Use of ProductsSeptember 200312 month figures


Consumables– Outsourcing– Logistics management

Service and Spare Parts– Service contracts

Rental

40%

45%

50%

55%

60%

0

1000

2000

3000

4000

5000

1998 1999 2000 2001 2002 Sept.2003

Use of products, share of revenues, %Use of products, MSEKEquipment sales, MSEK

8


StrategyOrganic Growth and Acquisitions


Research and Development

New products and solutions, the driving force in organic growth

Extend the product offer based on modular design concept

Design and ergonomics

Develop intelligent product concept

New product development


Radio Remote Control

Balanced design– Low center of gravity– High ground clearance– Exceptional rough

terrain capabilities

ROC D5 RRC

Product Innovation

9


Diamec U6 APC

Product Innovation

New Drill Design– Reliability– Power– Flexibility– Safety and

Ergonomics

New Hydraulic Control System


Simba M6 C

Product Innovation

Computer Controlled

RCS - Rig Control System


Cobra Combi

Product Innovation

Petrol driven drill and breaker– Multi-purpose tool

Portable, Flexible, Economical

Higher operator comfort and less environmental impact– Lower vibrations

− New vibration-dampening handles reduce vibration levels from 8 to 5m/s2

– Less noise− Fulfilling the European Noise Directive (NED)

– Cleaner emissions− Meets US emission regulations EPA1

10


Aftermarket concept

Aggressive growth of aftermarket business

Develop global service concept/competence

Introduce fleet management system

Introduce more aftermarket products

Focus through a separate organisation


Key account strategy

A closer partnership relationship between customers and suppliers, when possible based on performance contracts.


Fundamental believes

Stability

Profitability

Growth

11



Year Aquisition Divestment

1998 JKS Boyles Robbins TBM

2000 Hobic JKS Lamage

2001 Christensen Products

2002 Ankertechnik (MAI)

Krupp Berco Bautechnik

2003 Professional Diamond Drilling Equipment and Mining Drilling Services

Shenyang Rock Drilling Machinery

Aftermarket - Use of ProductsAcquisitions / Divestments


World ore production


Surface mining

12


North America

Russia

Asia

AustraliaSouth Africa

Focused Markets



Order volume growth, +8% – Mining orders continued to improve– Stabilization of order trend for light

construction equipment

Operating margins rebound– Very high invoicing offset sharply negative

impact from currency

Acquisition of Chinese rock drilling equipment manufacturer

Q3 2003


%

-20

-15

-10

-5

0

5

10

15

20

25

-20

-15

-10

-5

0

5

10

15

20

25

98 Q

1

98 Q

2

98 Q

3

98 Q

4

99 Q

1

99 Q

2

99 Q

3

99 Q

4

00 Q

1

00 Q

2

00 Q

3

00 Q

4

01 Q

1

01 Q

2

01 Q

3

01 Q

4

02 Q

1

02 Q

2

02 Q

3

02 Q

4

03 Q

1

03 Q

2

03 Q

3

Volume growth: Change in revenues vs. same quarter previous year, %Quarterly operating margin, % %

Construction & Mining TechniqueSeptember 200312 month figures

13



+

Change in volume, Q3 2003 vs. Q3 2002

+

+

+-

+

+8%Orders received per region and trend in Q3 2003



Market Position


Global leader in rock drilling and excavation equipment and tools for hard rock construction and mining applications

Defend strong market position by continuous product and service development and improved market presence and penetration

Further develop position in mining, exploration drilling and light construction equipment


Construction and Mining Technique - Committed to … · 2018-02-20 · – Tunnelling and road...

Documents

Transcript of Construction and Mining Technique - Committed to … · 2018-02-20 · – Tunnelling and road...