Folie 1 - Oerlikon Barmag
Folie 1 - Oerlikon Barmag Folie 1 - Oerlikon Barmag
1 SAURER Company Presentation December 2005
- Page 2 and 3: Highlights � Saurer consists of t
- Page 4 and 5: 4 SAURER TEXTILE SOLUTIONS
- Page 6 and 7: Position in the textile value chain
- Page 8 and 9: Innovations and key products 8 �
- Page 10 and 11: Textile mill consumption is increas
- Page 12 and 13: Success with mid-end twisting machi
- Page 14 and 15: Key management capabilities 14 Hand
- Page 16 and 17: 16 SAURER TRANSMISSION SYSTEMS
- Page 18 and 19: Strong position in Europe - new pot
- Page 20 and 21: Innovations and key products CARS A
- Page 22 and 23: 22 SAURER GROUP
- Page 24 and 25: Shareholder structure Free float -
- Page 26 and 27: Short-term outlook (2005) 26 � En
- Page 28 and 29: Outlook 2008: Substantial growth po
- Page 30 and 31: TEXTILE MARKET POSITION 30 STAPLE F
- Page 32 and 33: SAURER HISTORY 32 � 1853: Founded
- Page 34 and 35: VALUE GENERATION TRANSMISSION SYSTE
1<br />
SAURER<br />
Company Presentation<br />
December 2005
Highlights<br />
� Saurer consists of two perfectly positioned divisions: No. 1 world market<br />
position in Textile Solutions with an average market share of 30%; No. 1 in<br />
specialities with Transmission Systems (Graziano Trasmissioni).<br />
� Significant growth potential in Textile Solutions (market consolidation) and<br />
Transmission Systems<br />
� Excellent position in Asia with integration capabilities (leverage for new<br />
business in Asia)<br />
� Strong balance sheet with EUR 600m financing capacities for acquisitions<br />
� Competent management team with experience in management of cyclical<br />
businesses
Saurer – two growth oriented businesses<br />
3<br />
Textile<br />
Solutions<br />
Sales: EUR 1209m<br />
EBIT: EUR 77m<br />
Employees : 5861<br />
We are the undisputed market<br />
leader for full service solutions in<br />
textile machinery – we<br />
continuously set new benchmarks<br />
for efficient textile production<br />
SAURER<br />
Transmission<br />
Systems<br />
Sales: EUR 384m<br />
EBIT: EUR 22m<br />
Employees: 2970<br />
We are the preferred supplier of<br />
transmissions, components and<br />
systems for defined specialty<br />
markets and set high standards in<br />
reliability, price performance and<br />
flexibility
4<br />
SAURER TEXTILE SOLUTIONS
Strong market position, broad product offer<br />
5<br />
Staple fiber<br />
spinning<br />
Main competitors<br />
Rieter, Toyoda,<br />
Murata, Savio<br />
Jingwei<br />
Market position<br />
Chemical fiber<br />
technology Nonwovens Embroidery<br />
TMT, Rieter,<br />
Filteco<br />
Reifenhäuser, Dilo,<br />
NSC<br />
1, 2 1 2,3 1<br />
Lässer, Tajima,<br />
Barudan
Position in the textile value chain<br />
Focus on Spinning<br />
6<br />
Filament<br />
Texturizing<br />
Air-jet<br />
Spinning<br />
Spinning preparation<br />
Twisting<br />
Rotor<br />
Spinning<br />
Weaving / Knitting<br />
Finishing<br />
Synthetic staple fiber<br />
Embroidery<br />
Manufacturing<br />
Saurer Saurer Partners<br />
Ring Spinning<br />
Winding<br />
Nonwoven
Present in the most important market: Asia<br />
7<br />
Sales<br />
split<br />
Textile<br />
Solutions<br />
°<br />
°<br />
°<br />
°<br />
30%<br />
17% 14%<br />
35%<br />
95 02 04 95 02 04 95 02 04<br />
°<br />
° ° °<br />
°° °<br />
° °<br />
°<br />
20% 14%<br />
� key market asia – over 70% of sales !<br />
°<br />
°<br />
°<br />
35%<br />
°<br />
72%<br />
63%<br />
°<br />
°<br />
°<br />
° °<br />
°<br />
°
Innovations and key products<br />
8<br />
� Saurer spends 6% - a very high figure in this industry - of sales in<br />
R&D each years to maintain its leading position; examples:<br />
� WinPro: Revolutionary long staple fiber spinning/twisting system with<br />
highest productivity and quality<br />
� Filament spinning: i-COON 20 end winder (<strong>Barmag</strong>) sets new productivity<br />
standards<br />
� Autocoro 360: the most successful automatic rotor spinning machine for<br />
over a quarter of a century, with new features such as Corolab (cleaner)<br />
and fancy yarn unit<br />
� Nonwovens: Saurer offers all key nonwoven technologies from a single<br />
source; Saurer can now offer complete turn key plant for stapel fiber<br />
spinning, filament spinning and nonwovens
Operations in china secure proximity to<br />
customers and lower cost base<br />
Success<br />
factors<br />
9<br />
2003/4<br />
realized<br />
Sales &<br />
Service<br />
Organisation<br />
�10 local service<br />
centers in Asia<br />
�Local service<br />
and process<br />
engineers in<br />
India and China<br />
- can be<br />
deployed<br />
anywhere in the<br />
world<br />
Local<br />
production<br />
and sourcing<br />
�Lower costs<br />
base and<br />
natural hedge<br />
�Sourcing in<br />
Asia for Asia,<br />
but also for<br />
the rest of the<br />
world<br />
�Opening of<br />
Suzhou II in<br />
Q4 05<br />
China<br />
specific<br />
products<br />
�Modular<br />
concepts<br />
�China<br />
configurations<br />
�Total<br />
solutions<br />
approach<br />
Local talents<br />
& culture<br />
�Worldwide<br />
culture<br />
program<br />
�Over 1000<br />
people<br />
working in<br />
China<br />
Adaptation<br />
of European<br />
structure<br />
�Reduction of<br />
capacity<br />
�Site<br />
development<br />
programs
Textile mill consumption is increasing<br />
m tonnes<br />
ø<br />
growth:<br />
2.5-3.5%<br />
p.a.<br />
10<br />
50<br />
45<br />
40<br />
35<br />
30<br />
25<br />
20<br />
15<br />
10<br />
Manmade<br />
total<br />
Cotton<br />
Manmade<br />
staple<br />
Manmade<br />
filament<br />
5<br />
0<br />
Wool<br />
1970 1975 1980 1985 1990 1995 2000 2005 2010<br />
� But due to improved efficiency, market for textile machinery is overall slightly<br />
declining; growth must come from consolidation and entrance into new segments
Five companies were acquired in 2005<br />
11<br />
COMPANY BUSINESS FIELD SALES VOLUME [EUR m]<br />
(visible 2006)<br />
Autefa Nonwovens ~30<br />
Kortec Nonwovens ~ 3<br />
Fehrer Nonwovens ~30<br />
Ermafa Plastics ~ 6<br />
recycling
Success with mid-end twisting machine FOCUS<br />
12<br />
� Very successfully launched in<br />
2005<br />
� Developed within only 9 months,<br />
mainly for the Indian and Chinese<br />
market<br />
� Superior Saurer technology, but<br />
reduced to the maximum for the<br />
actual market needs<br />
� Can compete in pricing with local<br />
products
Management of market cycles is crucial<br />
13<br />
% change to previous quarter<br />
40<br />
20<br />
0<br />
-20<br />
-40<br />
81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03<br />
Source: VDMA<br />
� Saurer has learned to manage the always shorter and steeper cycles of the textile<br />
market
Key management capabilities<br />
14<br />
Handling of cyclical markets<br />
� Low fixed cost basis, flexible working hours scheme, low vertical<br />
integration, superior, flexible logistics, broader product range…<br />
Doing business in key market Asia<br />
� Successful business in Asia and China – setting up new operations, access<br />
to market is “daily business”<br />
� Well trained local Chinese Management<br />
Experienced team<br />
� Management has been with Saurer for several years<br />
� Excellent business, market and technical know-how
Strategy for sustainable growth (MUSANGALA)<br />
15<br />
1<br />
2<br />
3<br />
4<br />
5<br />
Exploit our strong product and total solution<br />
leadership position<br />
Generate 30% growth from better understanding<br />
of customer and faster realization of new solution<br />
Expand market position and/or technology base<br />
by acquisition of leading companies<br />
Continuously improve process orientation,<br />
flexibility and low cost base<br />
Create a challenging and inspiring working<br />
climate that attracts talents
16<br />
SAURER TRANSMISSION<br />
SYSTEMS
Specialized supplier of transmissions<br />
17<br />
Agriculture Luxury and sports<br />
cars<br />
Main competitors<br />
- Captive business<br />
(OEMs)<br />
- ZF, Carraro<br />
Market position<br />
Dana<br />
Earth moving,<br />
Forklifts, other<br />
Getrag, Magma, ZF,<br />
Dana<br />
1 (Europe)<br />
1 1 - 3<br />
- no presence in<br />
US/Asia<br />
� Position as specialized supplier for transmissions and components for small series at<br />
relatively low cost prevents fierce competition as in „mainstream“ car markets
Strong position in Europe – new potential in<br />
NAFTA and Asia<br />
18<br />
°<br />
°<br />
Sales<br />
Transmission<br />
°<br />
° °<br />
°<br />
°<br />
°<br />
19%18%<br />
11%<br />
Systems 95 02 04 95 02 04<br />
95 02 04<br />
America Europe Asia<br />
°<br />
86%<br />
78% 78%<br />
°<br />
°<br />
°<br />
3% 3 4%<br />
°<br />
°<br />
°
Agriculture and luxury cars: Two strongest<br />
segments<br />
TOTAL SALES 2004: EUR 384 m<br />
19<br />
Earth Moving<br />
9,1%<br />
Forklifts<br />
3,9%<br />
Sales by application field Sales by type of product<br />
Other Sectors<br />
13,1%<br />
Cars<br />
24,2%<br />
Agriculture<br />
49.7%<br />
4WD &<br />
Subassemblies<br />
(Groups)<br />
5,2%<br />
Synchronizers<br />
& Subsystems<br />
(Groups)<br />
16,9%<br />
Bevel<br />
Gears<br />
(Groups)<br />
11,5%<br />
Drive-Axles<br />
(Groups)<br />
8%<br />
Gearboxes<br />
(Systems)<br />
10,3%<br />
Spur Gears<br />
(Components)<br />
48,1%
Innovations and key products<br />
CARS<br />
AGRICULTURE<br />
OTHER<br />
20<br />
• Alfa Romeo 156:<br />
4WD system (rear diff. & front PTU)<br />
• Aston Martin DB9: manual gearbox<br />
and for the automatic transmission,<br />
the rear diff<br />
• Maserati Quattroporte and Ferrari<br />
Scaglietti: two new AMT gearbox<br />
applications<br />
• VW Transporter: front PTU for the<br />
4WD model<br />
• Magna Steyr: special synchronizer for<br />
Magna ITC (Integrated Transfer Case)<br />
• FENDT<br />
• CNH<br />
• JOHN DEERE<br />
• Transbus Dennis, new inverted portal<br />
axle for city bus<br />
� Project together with partner Prodrive<br />
� A new project for a new customer in<br />
the sport luxury car segment<br />
� Further development of the relationship<br />
with Ferrari Group<br />
� Further development of the relationship<br />
with VW<br />
� Special component development for Magna<br />
Steyr<br />
� Application of different GTG technologies<br />
� Several new project for components<br />
(gears)<br />
� New Client and new application of IPA<br />
technology
Transmission systems strategy: growth in<br />
specialties, mainly in NAFTA and Asia<br />
21<br />
1<br />
2<br />
3<br />
4<br />
Focus on specialties markets<br />
Cost effectiveness and flexibility to handle small and<br />
middle size specialties markets<br />
Acquisitions to consolidate specialty segments and<br />
technologies<br />
Geographical expansion in niche markets in NAFTA and<br />
Asia
22<br />
SAURER GROUP
With two divisions best in class<br />
23<br />
Textile<br />
Solutions<br />
Transmission<br />
Systems<br />
Two businesses with its own markets, strategy, knowhow,<br />
and competition – one goal: to be best in class<br />
� Know-how synergies<br />
- Experience e.g. in establishing business in China from Textile<br />
industry can be used in Transmission Systems business<br />
� Management synergies<br />
- Management of a cyclical industrial company<br />
� Financial synergies<br />
- Different cycles, cash management
Shareholder structure<br />
Free float<br />
- in the progress<br />
of transfer<br />
24<br />
36%<br />
Treasury<br />
shares<br />
1%<br />
15%<br />
42%<br />
Laxey Partners<br />
6%<br />
Zürcher<br />
Kantonalbank<br />
(ZKB)<br />
Free float<br />
- registered<br />
Corporate entities: 32%<br />
Individuals: 11%<br />
Shares in the<br />
progress of transfer: 57%<br />
(thereof 15% Laxey, 6% ZKB)<br />
� Saurer is interested in having a shareholder base with long-term horizon
25<br />
OUTLOOK
Short-term outlook (2005)<br />
26<br />
� End of multi-fiber agreement and soft-landing in China has caused a<br />
certain degree of uncertainty; we expect :<br />
- Lower volumes in Textile Solutions and<br />
- Higher volumes in Transmission Systems<br />
� Second half 2005 on level of first half with hope for improvement<br />
in textile business
Paradigma change from cost reduction to growth<br />
from:<br />
Looking inward<br />
- Consolidation<br />
- Risk reduction<br />
27<br />
to:<br />
Looking outward<br />
- Growth and innovation<br />
- Seize business opportunities
Outlook 2008: Substantial growth potential in<br />
textile an transmission systems<br />
28<br />
Textile Systems Solutions<br />
Transmission Systems<br />
New organic<br />
growth<br />
Acquisition<br />
Textile<br />
Business as<br />
usual<br />
New organic<br />
growth<br />
Acquisition<br />
Transmission<br />
Business as<br />
usual
29<br />
BACK-UP
TEXTILE MARKET POSITION<br />
30<br />
STAPLE FIBER<br />
Market Volume Market Saurer<br />
Brands in CHF m Share Pos. Main Competitors<br />
Ringspinning Zinser 500-1000 25% 2,1 Rieter, Toyoda, Marzoli,<br />
LMW<br />
Winding Schlafhorst 500-800 35% 1,2 Murata, Savio, Jingwei<br />
Rotor Spinning Schlafhorst 400-800 60% 1 Rieter, Savio<br />
FILAMENT<br />
Filament Spinning <strong>Barmag</strong> 650-1000 40% 1 TMT, Rieter<br />
Synth. Staple fiber Neumag 200-400 40% 1 Lurgi Zimmer, HILLS, Fare<br />
Texturing <strong>Barmag</strong> 350-500 35% 1 TMT, Rieter, Jingwei<br />
TWISTING<br />
Twisting Allma, Hamel, 500-750 30% 1 Murata, Rieter, Leewa,<br />
Systems Volkmann Savio, Rifa<br />
EMBROIDERY<br />
Embroidery Saurer 300-500 50% 1 Lässer,<br />
Systems Melco (excl. multihead) Tajima, Barudan<br />
NONWOVENS<br />
Airlaid/Spunbond Neumag 400-600 10-50% 3 Reifenhäuser, Rieter,<br />
Fleissner
SAURER TEXTILE GLOSSARY<br />
WEAVING AND KNITTING YARNS<br />
Yarn type Filament Staple<br />
Saurer Processes (Filament-) Spinning Ring spinning<br />
Texturing Winding<br />
Twisting Rotor spinning<br />
Twisting<br />
Chemical staple fiber plants<br />
Materials Chemical fiber: Natural fiber:<br />
- Polyester - Cotton<br />
- Polyamide - Wool<br />
- Polypropylene Chemical fiber:<br />
- Acrylic - Polyester - Polyamide<br />
- Elastane - Polypropylene - Acrylic<br />
- Viscose<br />
Blends<br />
NONWOVENS<br />
Yarn type Filament Staple<br />
Saurer Processes Spunbond Air-laid<br />
Materials Chemical fiber Chemical fiber<br />
31<br />
Filament Spinning: After heating the polymer, the<br />
melt is spun to endless yarn (filament) via spin packs.<br />
The yarn is drawn and taken up. Saurer Brands:<br />
<strong>Barmag</strong>, Neumag<br />
Texturing: Mechanical or thermal processing of<br />
filament to achieve properties similar to those of natural<br />
fibers; mainly for textile applications. Saurer Brand:<br />
<strong>Barmag</strong>.<br />
Twisting: Twisting of one or several yarns into a ply<br />
yarn. This can be done with filament as well as with<br />
staple yarns. Saurer Brands: Allma, Volkmann<br />
Ring spinning: By drafting and twisting, staples are<br />
spun into ring yarn. Process is always followed by<br />
winding. Saurer Brand: Zinser<br />
Winding: The ring yarn is winded from the cops to<br />
large bobbins. Thereby is quality check is executed.<br />
Saurer Brand: Schlafhorst<br />
Rotor spinning: Also called open-end spinning; with<br />
suction, the staples are drawn to a rotor and thereby<br />
spun to a rotor yarn. Saurer Brand: Schlafhorst<br />
Chemical staple fiber plants: Process analog to<br />
filament spinning, but after the spinning, staples of<br />
defined length are cut. These staple serve as input<br />
material for the ring or rotor spinning process. Saurer<br />
Brand: Neumag<br />
Nonwovens: The filaments or staples which build the<br />
fabric are bonded with thermal, chemical, or mechanical<br />
forces. There is no weaving/knitting process. Saurer<br />
Brand: Neumag
SAURER HISTORY<br />
32<br />
� 1853: Founded by Franz Saurer in a village close to St. Gallen, Switzerland<br />
� 1866: Franz Saurer moves to Arbon; marriage with Paulina Stoffel, owner of a successful manufacturing business<br />
� 1869: Installation of first Saurer embroidery machine<br />
� 1903: Start of production of trucks, major sales abroad<br />
� 1920: Saurer becomes a limited company<br />
� Up to 1953: Success story, strong growth mainly in vehicles business<br />
� 1973: Oil crisis marks turning point – vehicle production starts to lose competitiveness – definitive end of vehicle<br />
production activities in 1990<br />
� From 1988 on: Consequent textile oriented strategy; start of a series of acquisitions:<br />
- 1988, Carl Hamel AG, Arbon, Switzerland, twisting machines<br />
- 1990, Volkmann GmbH, Krefeld, Germany, twisting machines<br />
- 1991, Schlafhorst, Mönchengladbach, Germany, rotor spinning and winding machines, and Zinser<br />
Textilmachinen GmbH, Ebersbach, Germany, ring spinning machines<br />
- 2000, <strong>Barmag</strong> AG, Remscheid, and Neumag, Neumünster, both Germany, chemical fiber filament spinning<br />
and texturing, chemical staple fiber machines<br />
- 2003: M&J Fibretech and Ason, Denmark/USA, Nonwovens machinery<br />
� 1992: Integration of Graziano Trasmissioni (Transmission Systems) into Saurer by means of a stock swap – focus<br />
on two business pillars textile machines and transmission systems as strategic complements<br />
� 2003/4: Divestment of Surface Technology activities – Saurer has become the world’s leading textile machinery<br />
supplier and the leading manufacturer of transmissions for agricultural, earth moving and special vehicles, and<br />
luxury sports cars
VALUE GENERATION SAURER TEXTILE SOLUTIONS<br />
33<br />
Time to money Sales Fulfillment After sales<br />
Product leadership Premium supplier Logistic champion Customer intimacy<br />
High R&D efforts to<br />
maintain product<br />
leadership position<br />
Innovation based on<br />
deepest knowledge<br />
of customer leads to<br />
product<br />
differentiation and<br />
price premium<br />
S u p p o r t p r o c e s s e s – Facilitation Champion<br />
Selling with price<br />
premium due to<br />
superior total<br />
solution offer<br />
Strong logistics<br />
lead to quick<br />
quality delivery<br />
and a minimum<br />
of capital<br />
employed<br />
Local around the<br />
clock around the<br />
world services
VALUE GENERATION TRANSMISSION SYSTEMS<br />
34<br />
Time to money Sales Fulfillment<br />
Top technology applications<br />
for niches<br />
Co-developments<br />
with customers and<br />
partners to generate<br />
reliable, high<br />
performing and<br />
cost effective<br />
products<br />
Strength in design<br />
and manufacturing of<br />
small series products<br />
Premium supplier in defined<br />
niches for high class modules<br />
S u p p o r t p r o c e s s e s – Facilitation Champion<br />
Customer intimacy<br />
leads to long and<br />
good margin<br />
contracts<br />
Manufacturing champion<br />
for small volumes<br />
High flexibility and<br />
cost effectiveness to<br />
manage the wide<br />
range of products with<br />
perfect on time<br />
delivery and with the<br />
demanded quality
KEY FIGURES (II)<br />
in EUR 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995<br />
Sales 1'614<br />
EBITDA 189<br />
35<br />
1'746<br />
166<br />
1'698<br />
149<br />
1'593<br />
100<br />
1'426<br />
151<br />
867<br />
23<br />
1'152<br />
110<br />
1'250<br />
136<br />
1'114<br />
91<br />
1'151<br />
in % of sales 11.7% 9.5% 8.8% 6.3% 10.6% 2.7% 9.5% 10.9% 8.2% -0.7%<br />
Cash Op.Activities 165<br />
Capital Expenditures 61<br />
Free Cash Flow 1) 104<br />
Net Debt (Cash) (141)<br />
Equity incl. minority int. 519<br />
Intangible Assets (98)<br />
Tangible Cap.Employed 280<br />
Turns of Cap.Employed 4.9<br />
1) Before proceeds from sale of assets<br />
125<br />
50<br />
75<br />
32<br />
471<br />
(120)<br />
383<br />
4.4<br />
145<br />
52<br />
93<br />
106<br />
433<br />
(129)<br />
410<br />
3.7<br />
117<br />
64<br />
53<br />
208<br />
426<br />
(138)<br />
496<br />
3.3<br />
110<br />
74<br />
36<br />
189<br />
481<br />
(190)<br />
480<br />
3.1<br />
(9)<br />
63<br />
(72)<br />
75<br />
412<br />
(38)<br />
449<br />
2.0<br />
90<br />
93<br />
(3)<br />
(21)<br />
503<br />
(46)<br />
435<br />
2.8<br />
119<br />
52<br />
67<br />
(71)<br />
508<br />
(49)<br />
387<br />
3.2<br />
82<br />
46<br />
36<br />
(47)<br />
481<br />
(37)<br />
397<br />
2.6<br />
(8)<br />
(25)<br />
47<br />
(71)<br />
(23)<br />
506<br />
(39)<br />
445<br />
2.3