Post on 05-Jun-2018
transcript
3Customer teach-in October 2017
Agenda
Introduction
Customer priority in Power Solutions
Customer priority in Rental Solutions
Q&A
Lunch
Breakout groups:
Petrochemical & Refining
Oil & Gas
Mining
Utilities
Events
Temperature Control
Business development
Q&A
Event close
10:30am
12:00pm
1:00pm
4:00pm
5:00pm
Chris Weston
Stephen Beynon
Bruce Pool
Robert Harrison
Alex du Valukoff, David Dickert
George Whyte, Jamie Shepherd
Ana Amicarella, Bruce Pool
Robert Wells
Bill Carrick, Nicolas Protais
Dan Ibbetson
4Customer teach-in October 2017
Breakout groups
Group assignments
RED
YELLOW
BLUE
GREEN
ORANGE
WHITE
Carole Cran
Tom Hull
Andy O’Brien
Stephen Beynon
Chris Weston
Louise Bryant
5Customer teach-in October 2017
Business Priorities
Comprehensive programme in place
CUSTOMER
Tailor sales and service channels
Focus on key sectors
Pursue adjacencies
Evaluate bolt-on M&A opportunities
EFFICIENCY
Streamlining our cost base
Optimising deployment of resources
Improving processes and systems
TECHNOLOGY
Work with our strategic partners to develop market leading products
Strengthen and expand strategic partnerships
Reduce the overall cost of power for our customers
7Customer teach-in October 2017
Power gap estimated at 115GW− Utility industry addresses around 8.5GW today
Lower commodity prices have impacted developing economies, particularly export dependent
Power demand growth has been impacted but effect varies by sector and geography
Conditions vary by geography & sector
Markets
8Customer teach-in October 2017
Needs & behaviours are changing
Customer needs
UtilityCustomers
IndustrialCustomers
• More organised, more advanced purchasing departments, tenders commonplace
• Increasingly focused on total cost of energy
• Demand flexibility in fuel types
• Embracing off balance sheet solutions
• Need reliable sources of power
9Customer teach-in October 2017
Renewables
Influencing the energy agenda
Numerous potential benefits to developing economies
− Low/no fuel costs
− Reduce emissions
− Can provide access to power in off-grid areas
Still relatively immature, improvements needed to increase cost competitiveness
Political support and subsidies required but largely unavailable
10Customer teach-in October 2017
Our scale
Our culture
Our specialist knowledge
Our competitive advantages
10Customer teach-in October 2017
11Customer teach-in October 2017
Use our technology to drive the lowest possible total cost of energy
Improve the efficiency of our operations
Increasing our customer focus− Deepening our knowledge of markets and
sectors− Up-skilling and increasing our sales network− Implementing a new CRM
Building on our competitive advantages
Responding to a changing environment
12Customer teach-in October 2017
Initiative 1: Market & sector knowledge
New approach to managing and using market intelligence – Power Market Tool− In depth understanding of market dynamics, key to identifying most likely
opportunities to meet our potential targets
Detailed view of markets in 5 key areas− Economic & political stability, ability to pay− Supply and demand balance, economic costs of no electricity− Fuel availability and cost− Off-grid opportunities− Power generation cost curve
Benefits− Proactive in approaching customers− Identify opportunities earlier− Manage resources effectively
Already a competitive advantage
13Customer teach-in October 2017
Initiative 2: Sales function upscale & upskill
Recruiting more sales people− 25% increase in Business Development Managers− Focus on sector expertise; local hires− Complement experienced in house team
Improved training− Strategic sales training programme− Online tool, covers products, key sectors, sales process, competitive landscape,
safety and ethics− Supported by in depth market analysis from our Power Market Tool
Reinvesting in our sales function
14Customer teach-in October 2017
Initiative 3: Implementation of CRM
Single source to collate, manage and track opportunities
Common sales approach across all regions
Real time flow of information globally, unlock the full value of the organisation
Improve forecasting and visibility
Managing a complex, multi stage sales process
15Customer teach-in October 2017
Conclusion
Outlook for energy demand is increased growth
Business priorities are strengthening and building on competitive advantages
Developing a truly customer focused business
Committed to delivering future growth
Our competitive advantages are the right building blocks
15Customer teach-in October 2017
17Customer teach-in October 2017Customer teach-In October 2017
Our competitive advantage
Engineering & technical expertise
In-depth front line understanding of our customers’ problems
Flexibility to respond to changes in demand
WOMEN’S BASKETBALL Cooling required with
number of environmental variables
Used prior experience
CATALYST COOLING Customers wanted an
alternative to costly nitrogen for cooling
We developed a patented cooling process, saving the customer up to $5m
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18Customer teach-in October 2017
1. Enhanced sector focus
2. Investment in adjacencies
3. Investment in new systems
4. Global account management
Focuses us on four areas
Our customers expectations
TransactionalCustomers
Full SolutionsCustomers
• Transactions with minimal human interaction
• Standard packages
• Easy and repeatable experience
• Easy, multiple options for help
• Important to maintain the partnership relationship
• Can benefit from automation
• Comprehensive technical support
19Customer teach-in October 2017
Initiative 1: Sector focus
Oil & Gas
Utilities
Petrochemical & Refining
Events
Quarrying & Mining
Manufacturing
Business Services & Construction
Services
19
OFF-GRID MINE Designed a low cost, low emissions solution for an
off-grid mine
Used a predominantly gas solution with diesel back up
Heat recovery system designed to remove need for separate heaters
On rent for over a year, no current end date
Customer teach-in October 2017
8 clear sectors
20Customer teach-in October 2017
Products adjacent to power
Initiative 2: Adjacencies
ACQUIREDSeptember 2015
ACQUIREDAugust 2016
ACQUIREDJanuary 2017
ICSHeating specialist,
Canada
DrycoMoisture control,
Illinois USA
TuCoHeating & air conditioning,
Washington USA
21Customer teach-in October 2017
SEARCH
CONTACT
SELECT
PRICE
ORDER
SCHEDULE
RECEIVEINSTALL
OPERATE
OFF HIRE
RETURN
INVOICE
PAY
LOYALTY
Customers
CMS
CTI
CRM
CPQ
E - Commerce
ERP
Fleet Management
Transport / Inventory Management
Field Service Management
CRM Case Management
ROC
Effective Invoicing
Credit / Collections
NPS
Options being evaluated - 2018
• Order Fulfilment• Capacity Planning• Mobile Logistics – Technician Apps
Initiative 3: New systems
22Customer teach-in October 2017
Initiative 3: New systems
Search & Contact Transport & Dispatch Install & Operate & De-Install Invoice & Pay
The customer journeyRefine & Select
Customers find solutions online
Live chat available to assist
Partners have customized portal
Customer calls, answered by sector experts empowered to close deal
Access to quotes via multiple channels
Proposals can be self-produced or requested
Proposal can be received while on phone with call center
Seamless process between field and technical team to complete sale
Customer selects delivery window and can track equipment and tech status online
Proactive delivery updates provided
Customer knows what to expect prior to arrival
Proactive and easy monitoring, service, and maintenance
Load data is documented and transparent
Partners have frequent status updates on Aggreko performance
One-call assistance for operational issues
Reminder when contract ending
Multiple channels exist to flag when ready to off-hire the equipment
Up-to-date charges accessible any time
Pickup checklists to ensure quick and efficient collection
Easy to read invoice that ties to original estimate/ proposal
Customers can select how they receive invoice
Invoicing and payment based on customer choice
Order process tailored to rental
needs
Real-time information availability
Best-in-class transport and
commissioning
Flawless equipment reliability
Best-in-class pick-up and
decommissioning
Simple, correct invoicing
24Customer teach-in October 2017
Business development function and CRM open opportunities to pursue global accounts
Visibility of global customers
For example Rio Tinto in mining
Potential for real value for both customers and Aggreko
Initiative 4:Global account management
25Customer teach-in October 2017
Conclusion
Our core competency is our ability to understand our customers’ problems and deliver complex solutions
We are proud of being innovative and finding new market opportunities
Our initiatives strengthen us and position us to grow
25Customer teach-in October 2017
27Customer teach-in October 2017
Breakout groups
Group assignments
RED
YELLOW
BLUE
GREEN
ORANGE
WHITE
Carole Cran
Tom Hull
Andy O’Brien
Stephen Beynon
Chris Weston
Louise Bryant
28Customer teach-in October 2017
Dan IbbetsonGROUP BUSINESSDEVELOPMENT DIRECTOR
Business Development
29Customer teach-in October 2017
What business development means in Aggreko
How Aggreko structure the activity in this area
Working example – energy markets
Business Development Topics
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30Customer teach-in October 2017
What business development means
Global lines of business, adjacent product based or customer based:− Pull through revenue− Deploying capability, building on expertise
New products or services:− Structural approach− Staying relevant and valuable to our customers
31Customer teach-in October 2017
Valuable adjacent services operated as global lines of business:
− Temperature control− Load banks− Aggreko Events Services, global accounts
New products or services:− Combine with core capabilities to create
differentiated value− Hybrid generation, data, green fuel are examples− Strong link to technology
Corporate functions:− M&A− Strategy
How Aggreko structure the activity in this area
Establish, learn, adjust and scale
32Customer teach-in October 2017
Changes we are seeing in energy markets:− Importance of electricity− Growth in renewables− Intermittency and transmission/distribution
issues
Complimentary skills and experiences required to service new and core markets
New product offering – hybrid system
Using M&A to build further capabilities – more comprehensive micro-grid offer
Learn, adjust and scale the model
Working example Energy markets
33Customer teach-in October 2017
Working example Hybrid micro-grid
Priority is given to solar to meet the demand
Any solar excess is stored
When not enough solar is available, diesel and storage are combined to meet the load
Dispatch Algorithm The overall aim is to displace expensive
diesel consumption and replace it with cheap solar electricity
Insights on Operation
6,000
4 March 201700:00:00
Time of day
Dispatch plots
4,000
2,000
0
-2,0006 March 2017
00:00:005 March 2017
00:00:00
Power Diesel
Power Renewable
Power Storage
Power Demand
Excess Power
Unit: Percentage of the total load over a year
Losses
ENERGYSTORAGE DIESEL
EXCESSRENEWABLES
RENEWGENERATION
LOAD
63.41.734.92.9
39.9
2.1
0.4
100
34Customer teach-in October 2017
Changes we are seeing in energy markets:− Importance of electricity− Growth in renewables− Intermittency and transmission/distribution
issues
Complimentary skills and experiences required to service new and core markets
New product offering – hybrid system
Using M&A to build further capabilities – more comprehensive micro-grid offer
Learn, adjust and scale the model
Working example Energy markets