Page 1Präsentationstitel 1. Monat 2005 Competitive strategies for Swiss industries Philip Mosimann, CEO

Page 1Präsentationstitel 1. Monat 2005

Competitive strategies for Swiss industriesPhilip Mosimann, CEO

Page 2WTO 27 March 2012

Contents

1. Brief portrait of Bucher Industries

2. Pre-conditions in Switzerland

3. Examples of competitive strategies

4. Some personal considerations

5. Discussion

Page 3

Agricultural implements

World’s leading manufacturer of specialised agricultural machinery for tillage, seeding, fertilisation, spraying, landscape maintenance, hay and forage harvesting, livestock bedding and feeding.

Sales CHF 1000 m Employees 4 500

Municipal vehicles

European and Australian market leader in municipal vehicles, offering a whole range of compact and truck mounted sweepers, winter maintenance equipment and refuse collection vehicles.

Sales CHF 400 mEmployees 1 500

Hydraulic systems

International leader in the design and manu-facture of custom mobile and industrial hydraulic system solutions, offering an array of products encompassing pumps, motors, valves, power units, elevator drives and control systems.

Sales CHF 400 mEmployees 1 700

Glass container machinery

World market leader in glass container manu-facturing and inspection machinery, offering a portfolio ranging from glass forming and inspection machinery to complete production lines and components for the glass container industry.

Sales CHF 350 m Employees 2100

Small businesses

Machinery and equip-ment for winemaking, systems and machinery for processing fruit juice, instant products and dewatering sewage sludge as well as the Swiss distributorship for tractors and agricultural machinery.

Sales CHF 200 m Employees 600

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Our businesses – since 1807

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Major manufacturing sites worldwide

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Bucher group strategy (1)

Principles

• “Stakeholder approach” with long term, industrial view

• Increase of enterprise value (RONOA>>WACC)

• Businesses with worldwide technology and market leadership with #1 to #3 market positions

• Profitable growth, where profit growth is prioritised

• Focus on organic growth enhanced with specific targeted acquisitions strengthening existing businesses

• Strong balance sheet with high liquid funds for independance from banks and stock exchange

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Bucher group strategy (2)

Implementation of principles:

• Do what we understand: machinery and vehicles

• Do what we can best: “Best owner” of our businesses

• Do what we can handle: number of businesses 4 to 6

• Do what we can finance: Cash-flow and growth

• Do what creates value: Innovation and profitable growth

Consequences in group management

• Lean and decentralised management structure

• Lived entrepreneurial attitude with common methodologies

• Balance of trust and reasonable controls

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Pre-conditions in Switzerland

• Generell environment- Excellent infrastructure for business, living, and leisure

- High security level politically, socially, financially

- Internationally open society, entrepreneurial freedom, competitive tax

systems both in business as well as in private

- High cost country with strong currency

• Education and innovation- Universities, technical high schools, dual education system

- Established knowledge transfer fro universities to businesses

• Swiss businesses- No or very small home market

- Quality, reliability, innovation, automisation, work ethics

- World champion in exports per capita

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FOREX issues – a new phenomena?

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USD / CHF

Page 9

Euro – Problems with previous currencies and related governmental behavior?

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EUR / CHF


Competitive strategiesTopics on any board agenda

• Access to main markets which are outside Switzerland- Manufacturing at one place, export worldwide

- Split of value & supply chain: why, how?

- Protectionism today and tomorrow

• Which technologies for which markets

• What can we do better here than elsewhere? Why, how?

• What exactly means “better” – customers decide!

• For which technologies, products, applications is “Swiss made” the best solution? For which ones not?


Internal & external growth Investments: 70% internally, 30% externally

Net salesCHF million


Acceleration of structural change

CHF million

1986: Public offering Net sales CHF 0.4 bn

2‘730 employees

3 Acquisitions in DT and FR

12 AcquisitionsFocus Europe,

first transaction in Asia

1 Divestment

23 Acquisitions EU, USA, India, Brasil

6 factory closed8 Divestments

5 Acquisitions USA, CN, Europe

1 factory closed1 Divestment

1996: Creation of divisions

1998: Acquisition Emhart Glass

2004/06: Divestment Laeis Division

2008: Net sales CHF 2.8 bn8‘400 employees


Global Footprint (1)1807 - 1990: Focus Europe (CH, FR, GE)


Global Footprint (2)2012: 36 production sites worldwide


Acquisition…2002 Knight Manufacturing, Brodhead, USA


…integration and internal growthAgricultural machinery, Brodhead today

• USD 30 million invested in buildings since 2003• Total campus: 13 ha + 32 ha testing area

2004

2008

20062008

20112011

• Number of employees doubled in the last 6 years


Production and R & DGlass container industry

2007 R&D Center Windsor (USA)

2008 Johor Bahru (Malaysia) 2011 Majority interest in Sanjin (China)


Swiss success story (1)Hydraulic systems, Frutigen

1974 – 1993 Bei der Übernahme 1997 2000

Heute


Swiss success story (2)Hydraulic systems, Neuheim

• Bilder folgen


Swiss success story (3)Municipal vehicles, Ventspils, Latvia


Swiss factory (1)High automisation


Swiss factory (2)Automated manufacturing


Swiss factory (3)Rationalised assembly & testing


Swiss owned & run factory (4)Manufacturing and assembly

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Page 25

Investments since 2002

sales 2011 employees 2011 Capex 2002-2011

CHF m CHF m

Switzerland 117 5% 997 10% 117 16%

Rest of world 2 219 95% 9 139 90% 617 84%

Total 2 336 100% 10 136 100% 734 100%

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#factories

Capex / factoryCHF m

Switzerland 3 10% 39

Rest of world 33 90% 20

Total 36 100% 22


Personal considerationsCometitiveness in Switzerland

1. Expand excellent pre-conditions in Switzerland

2. Intensify co-operation with universities

3. Innovation and R&D: Continuity as success factor

4. Make structural changes fast; position company in major markets

5. Adapt supplier base to major markets

6. Permanent modernisation and automisation of factories

7. Create culture of continued improvement „Kaizen“

8. Secure strong balance sheet and financing in good times

9. Understand FOREX hedging as buying of time

10. Build dedicated, competent and creative work force

Page 27Präsentationstitel 1. Monat 2005

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Page 1Präsentationstitel 1. Monat 2005 Competitive strategies for Swiss industries Philip Mosimann, CEO