the electrolux group€¦ · life cycles 2,500 cost competitive life cycles 30,000 low capacity...
TRANSCRIPT
![Page 1: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/1.jpg)
The Electrolux
Group
Capital Markets Day
Charlotte, November 20, 2014
Jan Brockmann Chief Technology Officer
![Page 2: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/2.jpg)
Overview
2
• Innovation strategy
• Modularization
• Global Product Innovation
• The Internet of Things: Communicating with consumers throughout a product’s lifecycle
![Page 3: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/3.jpg)
Innovation is a key part of our strategy
3
Profitable
growth
Operational excellence
Innovation
People & Leadership
![Page 4: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/4.jpg)
Innovation cornerstones
4
• Global Operations
• Robustness
• Basic product expectations
• Continuous improvement
• Productivity
• Speed to market
• Customization of platforms
• Price premium/Qualifying in segment
• Alignment with purpose
• Leverage our heritage
• Price premium, value/Gross profit
• 70% preference rule
• Product/ Accessories & Consumables/Services
• Connectivity
• Open Innovation
• Brands/ Adjacencies
Consumer Value
Proposition Sustainability
Cost & Quality Modularization
![Page 5: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/5.jpg)
Three key targets 2015
5
Reduce the time
from innovation
to launch by
Variant and cost
reduction through
modularization Increase investment in
innovation
-30%
-20%
+50%
![Page 6: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/6.jpg)
Investment in Innovation; R&D spend
6
2010 SEK 2.1bn
2015 SEK~3.2bn
![Page 7: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/7.jpg)
More innovation and world-class quality
7
2009 2014 2015 Forecast
1.5
2.0
2.5
3.0
%
Warranty and R&D spend in % of net sales – Electrolux Group
2.4 2.4
3.0
1.9
Warranty
R&D Spend
![Page 8: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/8.jpg)
23 Best in test winners and 32 Design awards
8
![Page 9: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/9.jpg)
Overview
9
• Innovation strategy
• Modularization
• Global Product Innovation
• The Internet of Things: Communicating with consumers throughout a product’s lifecycle
![Page 10: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/10.jpg)
Module 1.0 plans completed-execution ongoing
10
Dish care Food preparation Food preservation Fabric care
Cross
product line
Product line
specific
11 module areas 9 module areas 9 module areas 11 module areas
Spray system Lid Work top
Packaging
Accessories & Consumables
Hydraulics/Filtration Cooling system Hob Wash group
Internal air flow s. Cooling system Hydraulics Basket/Racks
Interior Cavity Tub
Ice and water
Electrics & Electronics
Drive train
Compartment Heat pump
Drying group Control II
Product line
specific, but
similar
Door
Body
![Page 11: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/11.jpg)
Modularization 1.0 to 2.0
11
From cost saving to market growth and market agility
Module Area Module Parts
MODULARIZATION 1.0 MODULARIZATION 2.0
Market Product Manufacturing
PRODUCT COST SAVINGS (Focus DM)
COMPLEXITY REDUCTION
PRODUCT COST SAVINGS (DM and DL)
Automation, Design for Automation and
Assembly
INNOVATION ENHANCEMENT
Product Category
IE Front loaded
Washing machine
Platform
Manufacturing Product
Architecture Performance
Step
![Page 12: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/12.jpg)
Movie Modularization
![Page 13: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/13.jpg)
Solid
Radiant
Induction
Gas
Performance steps Module Variants Customer Variants
Control panel
Door Cooling system
Hob Cavity Compartment
Cooled door
Active cooling
No cooling
Cooled
Full glass
Steel inner
BG
BG + F.Ctrl
F.Ctrl
Integrated control
Storage
Warmer
Grill
No compartment
Pyro
Fan
Standard
Gas Pyro
Gas Fan
Gas Standard
Interfaces
Modularization creates a new efficient way to configure products
![Page 14: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/14.jpg)
Cooled door
Active cooling
No cooling
Cooled
Full glass
Steel inner
BG
BG + F.Ctrl
F.Ctrl
Integrated control
Storage
Warmer
Grill
No compartment
Pyro
Fan
Standard
Gas Pyro
Gas Fan
Gas Standard
Solid
Radiant
Induction
Gas
Door Cooling system
Hob Cavity Compartment Control panel
Modularization creates a new efficient way to configure products
![Page 15: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/15.jpg)
Modularization improves time-to- market and capital efficiency
15
Examples: Top- and bottom freezers, global
Lead project
Thailand
Product development
Time
100%
Module development
Product development
2nd wave
Latin America
3rd wave
Thailand II,
(North America)
Capex
100%
Product development
Time
80%
Capex
85%
Time
70%
Capex
80%
![Page 16: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/16.jpg)
Benefit from modularization (direct cost only)
16
Realized
Ongoing
Identified
Potential
Modularization 1.0
SEK 1.5bn Direct material
Modularization 2.0
Direct material and labor
![Page 17: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/17.jpg)
Overview
17
• Innovation strategy
• Modularization
• Global Product Innovation
• The Internet of Things: Communicating with consumers throughout a product’s lifecycle
![Page 18: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/18.jpg)
Rapid global product development in Fabric Care
18
NA
LA
CHINA
SEA / ANZ
Launch
coming
Launch
potential
Launch
planned
Launch
planned
EU/MEA
Launch
>2 MILLION UNITS DEVELOPED IN 3 YEARS IN 7 MARKET REGIONS Mass front load washing machines and dryers with same product architecture, same manufacturing principles, same modular exter ior and interior concepts, differentiated dimensions, design elements and offer line-up
![Page 19: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/19.jpg)
Consumer relevant innovation in Mass+ Laundry
19
Our solution – New Electrolux Group Mass range
Intuitive “step by step”
user interface
Up to 10kg load
XXL door
XXL drum
30’ @ 30° wash
Quick wash option
20 min refresh
Delay start, Finish in,
Finish at
High capacity Ease of use /
simplicity
Save and Manage
time
A+++
![Page 20: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/20.jpg)
Filling a market space by leveraging our professional heritage
Domestic laundry Professional laundry Semi-Professional laundry market
Customers:
• Small hotels and B&B
• Restaurants
• Small cleaning and laundry
companies
Life cycles 2,500
Cost competitive
Life cycles 30,000
Low capacity
High cost
Life cycles 7,500
![Page 21: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/21.jpg)
Global product architectures in Food Preservation- Fuel growth / innovation
21
NA
BRA
CHINA
THAI/APAC
EMEA
Launch
step 2 Launch
Launched/
Launch step 2
coming
Launch
Launch
coming
5 MILLION UNITS DEVELOPED IN 3 YEARS IN ALL REGIONS
Bottom- and Top Freezers with same product architecture, same manufacturing principles, same modular exterior and interior concepts, differentiated dimensions, design and offer line-up
![Page 22: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/22.jpg)
Flexdoor execution AEG premium EMEA
![Page 23: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/23.jpg)
Flexdoor execution Frigidaire mass
NA at retail
![Page 24: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/24.jpg)
Overview
24
• Innovation strategy
• Modularization
• Global Product Innovation
• The Internet of Things: Communicating with consumers throughout a product’s lifecycle
![Page 25: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/25.jpg)
Lifetime business through direct dialogue using connected products
25
0 50 100
% of registeredconsumers
Gross margin
Net sales
0 50 100
% of registeredconsumers
Gross margin
Net sales
0 100
% of registeredconsumers
Gross margin
Net sales
Sale of products Aftermarket sales
(service, consumables)
Relatively low incentive for product
registration Service calls, direct selling Registration prerequisite
for operation
Connected products –
sales and aftersales integrated Todays` appliance business structure
![Page 26: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/26.jpg)
NEW CONNECTED OVEN
![Page 27: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/27.jpg)
Connectivity demonstration
![Page 28: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/28.jpg)
3 PHASES OF CONNECTIVITY DEVELOPMENT
Single
solutions for
single appliances
One ecosystem
per
brand/company
Open standards
connecting
everything
Not Electrolux Preference
Electrolux Approach
+
Electrolux 2015/2016 main products
We will integrate with these solutions
but not launch an Electrolux solution
We expect open standards to prevail +
+
Our connectivity strategy
![Page 29: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/29.jpg)
We want to communicate with the multiple connected home devices
29
Image courtesy of the AllSeen Alliance
![Page 30: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/30.jpg)
+ Premier Members
Electrolux premier member in the biggest smart home alliance
Community Members
30
![Page 31: The Electrolux Group€¦ · Life cycles 2,500 Cost competitive Life cycles 30,000 Low capacity High cost Life cycles 7,500 . Global product architectures in Food Preservation- Fuel](https://reader034.vdocument.in/reader034/viewer/2022042210/5eae4775b7d6a022423b8661/html5/thumbnails/31.jpg)
Wrap-up
31
Investment in innovation leads to
• Expansion of gross margins
• More products consumers prefer – differentiated by brand
• Opening up of new business models – connected products
Operational excellence will be accelerated through Modularization 2.0
Electrolux builds also on strong alliances to lead megatrends in the industry - AllSeen
=> Strong glocal innovation and operations model unmatched
by any competitor in the industry