Competitive strategies for Swiss industries
Philip Mosimann, CEO
Präsentationstitel 1. Monat 2005
Page 1
Contents
1. Brief portrait of Bucher Industries
2. Pre-conditions in Switzerland
3. Examples of competitive strategies
4. Some personal considerations
5. Discussion
WTO 27 March 2012
Page 2
Our businesses – since 1807
Agricultural
implements
Municipal vehicles
Hydraulic systems
Glass container
machinery
Small businesses
World’s leading
manufacturer of
specialised agricultural
machinery for tillage,
seeding, fertilisation,
spraying, landscape
maintenance, hay and
forage harvesting,
livestock bedding and
feeding.
European and
Australian market
leader in municipal
vehicles, offering a
whole range of
compact and truck
mounted sweepers,
winter maintenance
equipment and refuse
collection vehicles.
International leader in
the design and manufacture of custom
mobile and industrial
hydraulic system
solutions, offering an
array of products
encompassing pumps,
motors, valves, power
units, elevator drives
and control systems.
World market leader in
glass container manufacturing and inspection
machinery, offering a
portfolio ranging from
glass forming and
inspection machinery to
complete production
lines and components
for the glass container
industry.
Machinery and equipment for winemaking,
systems and machinery
for processing fruit juice,
instant products and
dewatering sewage
sludge as well as the
Swiss distributorship for
tractors and agricultural
machinery.
Sales CHF 1000 m
Employees 4 500
Sales CHF 400 m
Employees 1 500
Sales CHF 400 m
Employees 1 700
Sales CHF 350 m
Employees 2100
Sales CHF 200 m
Employees 600
WTO 27 March 2012
Page 3
Major manufacturing sites worldwide
WTO 27 March 2012
Page 4
Bucher group strategy (1)
Principles
•
“Stakeholder approach” with long term, industrial view
•
Increase of enterprise value (RONOA>>WACC)
•
Businesses with worldwide technology and market leadership
with #1 to #3 market positions
•
Profitable growth, where profit growth is prioritised
•
Focus on organic growth enhanced with specific targeted
acquisitions strengthening existing businesses
•
Strong balance sheet with high liquid funds for independance
from banks and stock exchange
WTO 27 March 2012
Page 5
Bucher group strategy (2)
Implementation of principles:
•
Do what we understand: machinery and vehicles
•
Do what we can best: “Best owner” of our businesses
•
Do what we can handle: number of businesses 4 to 6
•
Do what we can finance: Cash-flow and growth
•
Do what creates value: Innovation and profitable growth
Consequences in group management
•
Lean and decentralised management structure
•
Lived entrepreneurial attitude with common methodologies
•
Balance of trust and reasonable controls
WTO 27 March 2012
Page 6
Pre-conditions in Switzerland
•
Generell environment
- Excellent infrastructure for business, living, and leisure
- High security level politically, socially, financially
- Internationally open society, entrepreneurial freedom, competitive tax
systems both in business as well as in private
- High cost country with strong currency
•
Education and innovation
- Universities, technical high schools, dual education system
- Established knowledge transfer fro universities to businesses
•
Swiss businesses
- No or very small home market
- Quality, reliability, innovation, automisation, work ethics
- World champion in exports per capita
WTO 27 March 2012
Page 7
FOREX issues – a new phenomena?
USD / CHF
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011
WTO 27 March 2012
Page 8
Euro – Problems with previous currencies
and related governmental behavior?
EUR / CHF
1.8
1.7
1.6
1.5
1.4
1.3
1.2
1.1
1
0.9
1999
2000
2001
WTO 27 March 2012
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Page 9
Competitive strategies
Topics on any board agenda
•
Access to main markets which are outside Switzerland
-
Manufacturing at one place, export worldwide
-
Split of value & supply chain: why, how?
-
Protectionism today and tomorrow
•
Which technologies for which markets
•
What can we do better here than elsewhere? Why, how?
•
What exactly means “better” – customers decide!
•
For which technologies, products, applications is “Swiss
made” the best solution? For which ones not?
WTO 27 March 2012
Page 10
Internal & external growth
Investments: 70% internally, 30% externally
Net sales
CHF million
3,000
2,500
2,000
1,500
1,000
Acquisition base sales
500
Organic base sales
0
2011
2009
2007
2005
2003
2001
1999
1997
1995
1993
1991
1989
1987
1985
1983
1981
1979
1977
WTO 27 March 2012
Page 11
Acceleration of structural change
CHF million
2008: Net sales CHF 2.8 bn
8‘400 employees
3,000
2,000
1,500
Machinery / Laeis
2004/06: Divestment
Laeis Division
1998: Acquisition
Emhart Glass
1996: Creation of
divisions
2,500
Specials
1986: Public offering
Net sales CHF 0.4 bn
2‘730 employees
Emhart
Hydraulics
Municipal
1,000
Kuhn
500
0
2011
2009
2007
2005
2003
2001
Focus Europe,
first transaction in Asia
1999
12 Acquisitions
1 Divestment
WTO 27 March 2012
1997
1995
1993
1991
1989
in DT and FR
1987
1985
1983
1981
1979
1977
3 Acquisitions
Agriculture /
Vehicles / Municipal
Bucher Industries
total
23 Acquisitions
5 Acquisitions
EU, USA, India, Brasil
USA, CN, Europe
6 factory closed
8 Divestments
1 factory closed
1 Divestment
Page 12
Global Footprint (1)
1807 - 1990: Focus Europe (CH, FR, GE)
WTO 27 March 2012
Page 13
Global Footprint (2)
2012: 36 production sites worldwide
WTO 27 March 2012
Page 14
Acquisition…
2002 Knight Manufacturing, Brodhead, USA
WTO 27 March 2012
Page 15
…integration and internal growth
Agricultural machinery, Brodhead today
• USD 30 million invested in buildings since 2003
• Total campus: 13 ha + 32 ha testing area
2008
2006
2004
2011
2008
• Number of employees doubled in the last 6 years
WTO 27 March 2012
Page 16
Production and R & D
Glass container industry
2007 R&D Center Windsor (USA)
2008 Johor Bahru (Malaysia)
WTO 27 March 2012
2011 Majority interest in Sanjin (China)
Page 17
Swiss success story (1)
Hydraulic systems, Frutigen
1974 – 1993
Bei der Übernahme 1997
2000
Heute
WTO 27 March 2012
Page 18
Swiss success story (2)
Hydraulic systems, Neuheim
• Bilder folgen
WTO 27 March 2012
Page 19
Swiss success story (3)
Municipal vehicles, Ventspils, Latvia
WTO 27 March 2012
Page 20
Swiss factory (1)
High automisation
WTO 27 March 2012
Page 21
Swiss factory (2)
Automated manufacturing
WTO 27 March 2012
Page 22
Swiss factory (3)
Rationalised assembly & testing
WTO 27 March 2012
Page 23
Swiss owned & run factory (4)
Manufacturing and assembly
WTO 27 March 2012
WTO 27 March 2012
Page 24
Investments since 2002
sales 2011
employees 2011
CHF m
Switzerland
Capex 2002-2011
CHF m
117
5%
997
10%
117
16%
Rest of world
2 219
95%
9 139
90%
617
84%
Total
2 336
100%
10 136
100%
734
100%
#
factories
Capex / factory
CHF m
Switzerland
3
10%
39
Rest of world
33
90%
20
Total
36
100%
22
WTO 27 March 2012
Page 25
Personal considerations
Cometitiveness in Switzerland
1.
Expand excellent pre-conditions in Switzerland
2.
Intensify co-operation with universities
3.
Innovation and R&D: Continuity as success factor
4.
Make structural changes fast; position company in major
markets
5.
Adapt supplier base to major markets
6.
Permanent modernisation and automisation of factories
7.
Create culture of continued improvement „Kaizen“
8.
Secure strong balance sheet and financing in good times
9.
Understand FOREX hedging as buying of time
10. Build dedicated, competent and creative work force
WTO 27 March 2012
Page 26
Thank you for your kind attention
Präsentationstitel 1. Monat 2005
Page 27