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