”going east” – alfa laval in asia and russia · ”going east” – alfa laval in asia and...

””Going Going east” east” –– Alfa LavalAlfa Lavalin in Asia Asia and and RussiaRussia

”Controllerdagarna””Controllerdagarna”Teknikföretagen, May 25Teknikföretagen, May 25

Peter LeiflandPeter LeiflandExecutiveExecutive VP VP

Region Region AsiaAsia, Latin America, Africa and Oceania , Latin America, Africa and Oceania

© Alf a Lav al Slide 3 www .alfalaval.com

A global company

Year 200Year 20033

•• Total sales: MTotal sales: MSEK 14,000SEK 14,000•• No. of employees: No. of employees: 9,4009,400•• 20 production units20 production units•• 70 service centres70 service centres•• Sales Companies in 50 countries Sales Companies in 50 countries •• Other sales representation in more than 45 countriesOther sales representation in more than 45 countries


Capital salesCapital sales//core product groupcore product group

Heat TransferHeat Transfer41%41%

SeparationSeparation30%30%

Fluid HandlingFluid Handling18%18%

Heat Transfer Separation Fluid Handling

Market share36%

Market share24%

Market share10%


Alfa LavalGroup

President and CEOPresident and CEO

Operations-divisionPurchasingLogisticsManufacturing

Operations-divisionPurchasingLogisticsManufacturing

Process TechnologyDivision

Food TechnologyEnergy & EnvironmentProcess IndustryLife ScienceParts & Service

Process TechnologyDivision

Food TechnologyEnergy & EnvironmentProcess IndustryLife ScienceParts & Service

EquipmentDivision

Marine & DieselSanitaryComfort & RefrigerationFluids & UtilitiesOEMsParts & Service

EquipmentDivision

Marine & DieselSanitaryComfort & RefrigerationFluids & UtilitiesOEMsParts & Service

-Support functions-Support functions

Sales companiesAsia, Oceania, Africa, Latin AmericaEuropeNorth America

Sales companiesAsia, Oceania, Africa, Latin AmericaEuropeNorth America


Orders received by RegionOrders received by Region

Cen

trC

entr.

& E

ast

9 %

. & E

ast

9 %

North A

merica

17 %

North A

merica

17 %

Asia 25 %

Asia 25 %

L. Am

e rica 4 %

L. Am

e rica 4 %O

t her 2 %O

t her 2 %

Western EuropeWestern Europe30 %30 %

Nordic 13 %

Nordic 13 %

January – December 2003

--

----

++++

++

+++18%

+23%


Orders received by CountryOrders received by Country

Russia 4%

Russia 4%

January – December 2003

China 7%China 7%

India 4%India 4%

+51%

+44%

+26%

Growth 2000Growth 2000--20032003


Performance Asia and CEE

•• Same gross Same gross marginmargin--level level as West Europeas West Europeand and AmericasAmericas

•• Lower sales Lower sales and administration and administration costcost•• Shorter payment Shorter payment termsterms


China1984

South Korea1979

Japan1930

Philippines1986

India1937

Saudi Arabia1995

Thailand1983

Singapore1978

Indones ia1993

Taiw an1986

Malaysia1969

Establishment of sales companies

Pakistan1987

Dubai1994


Ukraine

Poland1991

Cz/Slov1991

Balt ic1996

Russia1993

Turkey1991

Romania1996

Bulgary 1997

Establishment of sales companies

Hungary1991


Manufacturing in Asia and CEE

Russia1995

India1963

China 1994

Japan 1962

Poland2000


World wide uniform standards –our key to success•• Global Global product catalogues product catalogues and and pricelistspricelists


BeforeBefore

PricingPricing

NowNowRCPL* RCPL* -- Discount %Discount %

Market Market pricingpricing

*Recommended Customer Price List*Recommended Customer Price List

€

€€

“Transfer Price” x “Transfer Price” x FactorFactor

CostCost++


•• Global Global product catalogues product catalogues and and pricelistspricelists•• Sales channelsSales channels

World wide uniform standards –our key to success


Sales Sales cchannelshannels

End Users

Distributors

System Builders

Contractors

Distributors

Distribution in % per type of channelDistribution in % per type of channelEquipment Division, last 12 months June 2003Equipment Division, last 12 months June 2003

18

36

18

28Own sales force


•• Global Global product catalogues product catalogues and and pricelistspricelists•• Sales channelsSales channels•• Sales Sales & Market & Market planningplanning



CustomersCustomers

How we drive growth

Salesman

Sales Companysegment

Central segmentAL Group GearboxGearbox

AcceleratorAccelerator

ConnectConnect

The The six gearssix gears

Gap Gap analysisanalysis & & TargetsTargets

Key Key growth driversgrowth drivers

CustomerCustomer pyramid & pyramid & gridgrid

Key performance Key performance indicatorsindicators

ActivitiesActivities & & CompetenceCompetence


•• Global Global product catalogues product catalogues and and pricelistspricelists•• Sales channelsSales channels•• Sales Sales & Market & Market planningplanning•• Performance Performance measurementsmeasurements



Financial performance measurements

Continuous improvements of rolling twelve months’ valuesContinuous improvements of rolling twelve months’ values

Country performanceCountry performance

•• Total orders Total orders received received per countryper country•• Profit Profit factor factor = = ConsolidatedConsolidated gross gross marginmargin / /

Local costLocal cost•• Net Net DSO = DSO = Outstanding Outstanding A/R less A/R less advancesadvances

in no of in no of days days of of invoicinginvoicing


SalesPerson

Segments

Activity measurementsActivity measurements

No 7: order No 7: order volumevolume

No 6: hit No 6: hit ratioratio

Sales Productivity

No 3: # of No 3: # of ordersorders

No 1: # of No 1: # of customerscustomers

No 2: # of No 2: # of quotesquotes

Expand Customer Base

No 5:# of orders/No 5:# of orders/# of # of customerscustomers

No 4: order No 4: order volumevolume/ # / # of of customerscustomers

Increase Customer Share


•• Global Global product catalogues product catalogues and and pricelistspricelists•• Sales channelsSales channels•• Sales Sales & Market & Market planningplanning•• Performance Performance measurementsmeasurements•• Competence developmentCompetence development



Alfa Laval UniversityOne Mission

Three Faculties

Management

Manufacturingand Logistics

IS/IT

Research & Development

Technology Sales & Marketing

Products and applications

Selling Skills

Sales & Marketing

Management

To optimise our employees’ competence. Time and time again.


•• Global Global product catalogues product catalogues and and priceslistspriceslists•• Sales channelsSales channels•• Sales Sales & Market & Market planningplanning•• Performance Performance measurementsmeasurements•• Competence developmentCompetence development•• IS / ITIS / IT



•• Standardisation Standardisation and and centralised centralised management & management & operation of hardware and systemsoperation of hardware and systems

•• Similar data definitions, processes and system Similar data definitions, processes and system configurations for ERP in each countryconfigurations for ERP in each country

•• Common data warehouses for analysisCommon data warehouses for analysis•• CRM in the pipelineCRM in the pipeline

IS/IT Standardisation


What is next?


Hyundai


Geographical splitGeographical split

Distribution of shipbuildingDistribution of shipbuilding

0,00,0

20,020,0

40,040,0

60,060,0

80,080,0

100,0100,0

19701970 19751975 19801980 19851985 19901990 19951995 20002000 20052005

Perc

ent

Perc

ento

fofC

GT

CG

T

JapanJapan

South KoreaSouth Korea

ChinaChinaWestern Europe

Eastern EuropeOther World

Trends and Medium Term Forecast Trends and Medium Term Forecast Source: MSR May 2003Source: MSR May 2003


“Business is moving east”•• CustomersCustomers in in AsiaAsia and Central & Eastern Europe and Central & Eastern Europe willwill

set new set new productproduct standards standards -- productproduct management and management and R&D in the region?R&D in the region?

•• ProductionProduction and and engineeringengineering in in AsiaAsia and Central & and Central & Eastern Europe Eastern Europe -- closercloser to to customerscustomers and and lower costlower cost

•• New global New global competitors will emergecompetitors will emerge with with domestic domestic basebase in China, in China, IndiaIndia, South Korea and , South Korea and RussiaRussia

”going east” – alfa laval in asia and russia · ”going east” – alfa laval in asia and...

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