Download - KHD Corporate Presentation - 2013
Corporate Presentation
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KHD Humboldt Wedag
Company Overview
Industry & Market
Strategy for Success
Preparing for the future
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Our typical customers
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Local Global Regional
We are one KHD team committed to global
excellence as a customer-focused
equipment supplier and service company
providing competitive and environmentally
friendly technologies to the cement and
mining industries.
Mission
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KHD Offering
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• Full line engineering and equipment supply
• Individual machines
• Equipment packages
• Spare parts and a full range of plant services
KHD is one of the world‘s leading suppliers of cement plant equipment
• Over 150 years building new technologies, innovations, and high-end processes to meet
the global cement industry demand.
• Technology-focused company specializing in process engineering and project execution.
• Offers a wide range of products and services for the cement industry.
• High competence in eco-friendly and efficient products for pyro-processing and grinding.
• Over 760 employees worldwide.
• Presence in emerging markets like India and Russia / CIS, as well as in established
markets like USA , EMEA, and APA.
About Us
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• With KHD since 2008
• More than 25 years of experience in the
international construction and mining
equipment business
• Prior to joining KHD, was the President of
Construction Materials Division at Metso
Minerals, Inc.
• Bachelor of Science in Mechanical
Engineering from the Technical University
in Hameenlinna, Finland.
Our Executive Management Team
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Jouni Salo, CEO
• With KHD since the end of March 2011
• Previously the Assistant President of
Cement Business at CATIC Beijing Co.
Ltd.
• Has longstanding experience in working
abroad, as well as an MBA, and a degree
in Engineering
• Will develop global EPC business, as well
as KHD’s new customer service center in
the Asia-Pacific region
Yizhen “Mario” Zhu, COO
Operational Structure Beginning 2013
8 CSCs are supported by a global corporate and functional organization
CSC ASIA PACIFIC
KHD Beijing
CSC
INDIA
SSA
HWI Delhi
CSC
AMERICAS
HW INC
Atlanta
Belo Horizonte
Global
Headquarters
Cologne
Special
Markets
CSC
RUSSIA
ZAB Dessau
OOO Moscow
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KHD Operational Management Team
G. Harrison
Vice President -
Project Execution
J. Eloranta
Vice President -
Technology & Products
P. Ringberg
Vice President -
Contract Management
J. Luckas
Vice President -
Governance Risk &
Compliance
D. Uttelbach
Vice President -
Account Management
C. Elliger
CSC Head, RUS/CIS
Y. Zhu
CSC Head, APA R. Cusick
CSC Head, Americas
M. Gierse
CSC Head, India
J. Salo
Chief Executive Officer
Y. Zhu
Chief Operating Officer
Innovation is deeply ingrained in the name
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The “K” in KHD comes from
Peter Klöckner. In the 1920s,
Peter Klöckner created an
industrial conglomerate known
as Klöckner-Humboldt-Deutz
AG, by joining Klöckner Steel
works, with Humboldt Industrial
Plants, and Deutz Motor Works.
Since then, strategic
partnerships have continued to
played a key role in KHD’s
history.
The cement division derives its
name from the original
Humboldt Industrial Plants,
which were named after one of
the most famous German
scientists and explorers,
Alexander von Humboldt. His
work changed the mining
industry, and his spirit of
innovation has shaped KHD for
over 155 years.
The “D” in KHD comes from the
famous Deutz Motor Works.
This company was founded in
the Cologne city section known
as Deutz. Deutz Motor Works
was the first company in the
world to mass produce the
gasoline engine developed by
Nikolaus Otto.
Peter Klöckner
(1863 -1940)
Alexander von Humboldt
(1769 – 1859)
Deutz Motor Company
Ad 1910
K H D
KHD Milestones
Innovation is deeply ingrained in the name
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Innovation is deeply ingrained in the name
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• KHD built the world’s first pre-
heater in 1952
• The new preheater offered:
• Flexibility
• Low waste gas temperature
• High dust separation
efficiency
• Low power demand
• Today, KHD is still recognized
as industrial leader
• High calcination rate
• Lower NOx-emission due to
no build up of Thermal NOx
at the PYROCLON
• Modular Set-Up e.g.
Combustion Chamber
• Processes alternative fuels
• Complete Burn-Out
• Ratio Ø: length = 1: 11 – 12
• Pre-calcination 95%
• Increased production
• KHD was one of the first
companies to develop the
short kiln
• Lower construction costs
associated with only two piers
Preheater PYROCLON® Calciner PYRORAPID® 2-pier Kiln
Innovation is deeply ingrained in the name
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• Low energy consumption
• Low maintenance requirements
• Low space requirements
• Low vibration and noise
• High availability ( >95% )
• High wear surface life
• Modular, compact, all-around grinding system
• Lower energy requirements
• Low maintenance requirements
• Suitable for abrasive materials
• Excellent, local, after sales services for spare parts and replacement of wear parts
• Supervision Services
• Audits for:
• Process functions
• Mechanical Equipment
• Electric and Automation
• Quality and Chemistry
• Environmental matters
COMFLEX® System Roller Press Customer Service
Overview Financials
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Order backlog and order intake (backlog at end of period) in € million
215.2
282.9293.7
432.6
0
100
200
300
400
500
Q3/2011 YE 2011 Q3/2012
Order Intake Order Backlog
165.6
144.0
0
20
40
60
80
100
120
140
160
Q3/2011 Q3/2012
Group revenue
in € million
KHD Humboldt Wedag
Company Overview
Industry & Market
Strategy for Success
Preparing for the future
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• Since it is the main ingredient in concrete, after water, cement is the 2nd most widely used resource in
the world.
• Infrastructure projects drive demand for cement.
• The main ingredient in cement is limestone.
• The cement industry accounts for approximately 5% of the worlds CO2 emmissions.
• Although some cement and clinker (intermediate product of cement) is traded, most cement is produced
for local consumption.
• There are different grades and quality of cement.
• The basic process for making cement has not undergone any revolutionary changes in decades.
Basic Facts
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Our Market
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• Worldwide, there are 2,295 modern Cement Plants,
including 800 in China.
• Global consumption is expected to increase by 6%
in 2012 and 2013.
• Long Term Scenario for returns:
• Political intervention to cap cement prices
• Strong growth in emerging countries
encouraged new entrants into the market
• The pace of capacity addition is slowing in
China, but over 100 mt of new capacity will
be added annually between now and 2015
• Low utilization rates
• Trade flows have slowed during the crisis
and are now mostly intra-regional
Global cement consumption: over 3.5 bn tons Global Cement Consumption
Global Cement Production Capacity
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mill
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China Consumption
RoW Consumption
3564 m. t. in 2011
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China Capacity
RoW Capacity
4225 m. t. in 2011
China: 57.2%
India: 5.7%
USA: 2.0%
Brazil: 1.8%
Russia: 1.5%
RoW: 31.8%
Source: Global Cement Volume Forecast Report: 1H2012 update , Exane BNP Paribas, March 2012
Our Market
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Global Cement Consumption Forecast ‘00 – ‘15
Source: Exane BNP Paribas, March 2012
Theoretical Utilisation Rate ‘00 – ‘15
2000 2011 2015e
Africa 81% 70 % 55 %
Latam 54 % 62 % 65 %
N America 103 % 65 % 65 %
Europe 60 % 57 % 54 %
Asia ex China 64 % 62 % 64 %
China 41 % 83 % 103 %
Middle East 61 % 76 % 77 %
Oceania 81 % 80 % 76 %
World 54 % 73 % 81 %
World ex Ch 65 % 63 % 62 %
• China’s cement consumption in 2011 was over 2 billion
tonnes or roughly 58% of total global consumption and likely
to continue for the immediate future albeit at a slower pace
in 2012 and 2013 to 7% and 6% resp.
• Cement consumption forecast for mature market regions
(North America & Western Europe) over the next two years
currently show modest (1-2%) growth prospect
• Average global cement consumption expected to increase
by 6% in 2012 and 2013 0
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mill
ion tonnes
Global Consumption Forecast (‘08 – ‘13)
China Consumption
RoW Consumption
Source: Global Cement Volume Forecast Report: 1H2012 update
Our Market Presence
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>185
North and
South America
Europe
Africa
Asia
326
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85
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KHD has built over 500 cement plants across the world
Installed Base
KHD employees
Russia
308 India
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2
>140
>150
>110
>80
>28
>28
KHD Humboldt Wedag
Company Overview
Industry & Market
Strategy for Success
Preparing for the future
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KHD Strategy for Success
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Customer-focused growth (I): Account management
covers all sectors of the market
22 *Note: All numbers excluding China
High Risk Countries
14%
5%
6%
7%
13%
3%
43%
• Regional cement companies
• Small, local cement companies
• Government owned cement plants
• Minor players
< 9%
Major Players: 48%
Total Global Capacity 1.500 mt/ p.a. *
Other Players: 52%
• Customer Service Centers (CSCs)
• New CSC Asia-Pacific strengthens market position in China and other Asian growth markets
• New sales offices in key regions Turkey, Saudi Arabia, and Brazil
• Stronger position in Russia after buyout of KHD OOO
• Intensified service activities
• Active marketing
Customer-focused growth (II): Taking the global view
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Increased tendering
activities
Strengthened customer
services and sales
Customer-focused growth (III): Advanced
technology-based services
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• Focused services, in line with technological core competence, add to our asset-light
business model
• New roller-press refurbishment center near New Delhi strengthens customer relationships
• In discussions with possible strategic partners
• CRM system established, group-wide roll-out in 2012
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4 3
Technical Leadership
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• 40 patents in 2011
• KHD COMFLEX® system is one of the most energy-efficient grinding processes
• KHD’s COMBUSTION CHAMBER wins award for ‘Most innovative technology for
alternative fuels use’ at the 6th Global CemFuels Conference (Feb. 12)
• Industry leader in calcining technology with low NOX
• Highly efficient equipment helps reduce CO2
Strategic partnerships: AVIC
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• AVIC International Beijing Co. Ltd. and KHD Humboldt Wedag International AG agreed in December
2010 to join forces
• Long-term exclusive partnership
• Combines AVIC‘s EPC experience and access to low-cost sourcing, with KHD process know-how
and core product technology
• AVIC has invested a 20% stake in KHD
• Agreement became effective in March 2011
• Procurement center, established in 2011, helps to exploit cost advantages of Chinese supply market
Strategic partnerships: AVIC
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By combining the best of East and West, customers have a differentiated EPC option for
Cement Plant Projects with focus on emerging markets.
• Technical leader with core equipment
• Customer Service Centers around the globe
• Strong financial background
• EPC expertise in the cement sector
• Access to projects in China
• Low-cost sourcing
Strategic partnerships: Weir Minerals
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• Exclusive, global long-term sales agreement with Weir Minerals to grow KHD’s market share in the
minerals sector.
• Weir Minerals and KHD complement one another very well. KHD’s HPGR (roller press for minerals)
product is becoming increasingly accepted for minerals applications. However local service is
becoming more and more of a requirement for selling capital equipment in the minerals sector.
• Weir Minerals has access to the main minerals customers and a strong sales and service network
in all the major mining markets, as well as a strategic interest to develop other products.
Win-Win situation for both companies
Head Office: Glasgow
Listed: London Stock Exchange
Branches: Worldwide
Employees: > 9,000
The company constructs and
develops equipment for the mining,
processing industry with strong
service focus.
WEIR Group Company Profile Core Competencies:
Operational Excellence and Commitment
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• True international team = One KHD
• Group-wide emphasis on customer and service orientation, underlined by new
management structure
• Regular exchange of information and ideas
• Standardizing processes using SAP and CRM system
• Performance-based remuneration takes into account customer and service-related KPIs
KHD Humboldt Wedag
Company Overview
Industry & Market
Strategy for Success
Preparing for the future
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Future trends in our industry
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• Growth will be driven by emerging markets
• The BRIC countries will account for 80% of future growth
• Service business will become increasingly important
• Decision making will continue to be driven by environmental requirements and cost cutting
• Chinese competition is looking at growth opportunities outside of China, including
acquisitions in Europe
KHD India team supports a stronger future for local children
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Sweccha campaign:
• Provides local children guidance in life skills, values, attitudes and self esteem
• Creates awareness on environmental issues with projects such as Monsoon Wooding – An
effort to plant trees across Delhi, and establishing partner communities to care for their growth
• Offers children a place to go after school with programs in the areas of remedial courses, sports,
media, photography, dance and fun activities
• Organizes concerts and cultural events
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CEMENTING A
STRONGER FUTURE
Thank You
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