kalmar profit improvement is proceeding as … profit improvement is proceeding as planned olli...
TRANSCRIPT
18 November
2014
Kalmar profit improvement is proceeding as planned
Olli Isotalo
President, Kalmar
1. Status of Kalmar
profitability development
2. Kalmar must-win battles
Mobile Equipment
Services
Automation
3. Conclusions
18 Nov 2014 2
Clear progress in Kalmar profitability
development
3.9 7.0
16.0 15.6
25.5
11.2
-19.4
30.7
0.9 2.2
3.9 4.4 5.5
3.4
-6.0
8.0
-30
-20
-10
0
10
20
30
40
Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14
Operating profit excl. restructuring costs Operating profit %
MEUR
18 Nov 2014 3
%
20
15
10
5
0
-5
-10
-15
Improvements in design-to-cost
Kalmar is on track with profit
improvement initiatives
2012 2013 2014
Organisational efficiency and refocused R&D
Development of service business
Ramp-up of production in Rainbow Cargotec Industries joint venture
Further development of integrated port automation solutions
Improvements in design-to-cost
We are on
track with 40M
run rate
improvement
Kalmar
Care
contracts
won
Supply footprint development
Project delivery capability development Forklifts
moved to
Cibolo in
NA
New
products
launched
51M cost-
overruns in
STS
projects
No cost
overruns
from
automation
projects
VICTL
contract
Good order
intake for
RTGs
18 Nov 2014 4
Kalmar Profit Improvement Programme
18 Nov 2014 5
Supply
footprint
and design-
to-cost
2015
2014
Sourcing Sales/
Service
network
Pricing Spare
parts
Total
savings
(2014
impact)
Supply
footprint
and design-
to-cost
Automation
and
Projects
Division
Sales/
Service
network
Total
savings
(2015
impact)
Spare
parts
Pricing Sourcing
Bromma
spreaders Navis TOS
Automation
STS cranes ASCs
Straddle
carriers
Siwertell
RTGs
Shuttle
carriers
Maintenance Crane upgrades
Fleet management Spare parts
Empty container
handlers Reachstackers
Forklift trucks Terminal tractors
Kalmar business mix has changed
Terminal projects
30% Equipment
42% Services
28%
18 Nov 2014 6
Must-win battle:
How to secure competitiveness of
Mobile Equipment
New Kalmar Ottawa T2 distribution tractor
strengthens our market position in Americas
Innovative, operator-
friendly design
Safety enhancements and
easier maintenance and
serviceability
Profit improvement
initiatives integrated
– Design-to-cost
– Sourcing
– Improved pricing power
Excellent launch and
market acceptance
All time record in order
intake and production
Market share growing
18 Nov 2014 8
New G-generation electric forklift
launched for industrial customers
18 Nov 2014 9
Energy efficient and highly
environmentally friendly
product
Equally high performing as
powerful diesel trucks
Reduced total cost of
ownership
Profit improvement
initiatives integrated
– Design-to-cost
– Sourcing
– Improved pricing power
Kalmar Gloria reachstacker enters
Asia and Americas
High-end product developed based on
customer values
Differentiation against low-cost
competition
Profit improvement initiatives
integrated
– Design-to-cost
– Sourcing
– Improved pricing power
Meeting customer requirements in
emerging markets with specialised
offering: T-models a success in APAC,
now entering also Middle East, Africa
and Latin America
18 Nov 2014 10
Must-win battle:
How to set Services back to peer growth
Services development continues
in all areas
Kalmar Care contracts
won in all regions
Kalmar Care for
automated terminals –
work in progress
Crane Upgrades
growth delayed, but
still anticipated
Spare parts pricing and
tool development will
show results in 2015
18 Nov 2014 12
Must win battle:
How to win in automation
Lessons learned from current mega
projects, now we are ready to win
TraPac,
Los Angeles
Status: Commercial
operations partly started,
in the optimisation phase
HHLA, Hamburg
Status: Completed
DPW London
Gateway
Status: Commercial
operations started,
in the optimisation
phase
DPW Brisbane
Status: Commercial
operations started, in the
optimisation phase Patrick, Sydney
Status: Handing over in
process
VICTL,
Melbourne
Status:
Contract
signed
18 Nov 2014 14
Kalmar and Navis have a leading position
in port automation Kalmar’s current market share 30–50%, Navis 80% in automated terminals
Kalmar automation projects
Kalmar/Navis automation
solution
18 Nov 2014 15
Customer
Digital ecosystem revolutionises
the way of working
Testing & simulation Investment in Tampere
Technology and
Competence Centre
Automation test field
Automation laboratory
Simulation environment
Proto shop
Terminal Operating
System (TOS)
Terminal Logistics
System (TLS) Modular system
architecture
Measurement systems
Remote diagnostics
Fault management
Graphical UI framework
Pre-integrated with
Navis N4 TOS and
Kalmar equipment
18 Nov 2014 16
Cooperation with
local partners Strong utilisation of
R&D ecosystem results
University of Tampere
FIMECC
SME partners
Public funding partner:
Tekes
Kalmar has all the capabilities to respond to
the increased demand for port automation
Terminals are looking for different types
of automation
Greenfield projects = New automated
terminals, expansion of current automated
terminals or conversions of existing manual
operations
– Currently approx. 25 projects on-going or planned
– Expected 20 more projects in coming five years
Brownfield projects = Automating existing
manual operations
– Development in early phase
– Currently approx. 130 existing straddle carrier
terminals, of which 10% with automation potential
– Currently approx. 430 existing RTG terminals,
of which 10–15% with automation potential
18 Nov 2014 18
Conclusions
Project delivery capabilities improved based
on lessons learned
Excellent development in Mobile Equipment
will continue
Good progress in Services in most of the areas
Strong future growth expected for port automation
Increased investments in automation and
digitalisation
Kalmar is driving for industry leading financial
performance
18 Nov 2014 19