Sandvik Capital Markets Day 2005/1
Customer ValueEe Sian Lee
Sandvik Coromant China
Kenneth Sundh President Sandvik Coromant
Sandvik Capital Markets Day 2005/3
Wahaha
Availability of world-class tooling solutions
Good understanding of customer business
High product quality
Short delivery times
High degree of technical service
Production problem-solving
Productivity improvements
Summary of value creation at Wahaha
Sandvik Capital Markets Day 2005/4
Wahaha Customer Value File
Total Cost Savings SummaryImplemented savings during this period
Total savings identified this periodUnrealized savings end of this period
Sandvik Coromant purchases this period
Implemented savings this period
Reported period (max one year):
Purchase cost
Savings “Net”purchasecost
100% 15%
85%
2004-01-01 - 2004-12-31
246 699162 269
408 968
1 653 603
15%
RMB
Identified savings this period 25%
Sandvik Capital Markets Day 2005/7
ScaniaSummary of value creation at Scania
Global supplierHigh qualityVery good service levelCooperation - Partnership - RelationshipCost reductions – Not price for the toolTotal cost - ”cost per part”Common project work
Sandvik Capital Markets Day 2005/8
High quality services &
products
Being Partner-oriented
Speaking with one voice globally
Improving customer
productivity
Our success factors“ the fundamentals of our strategy”
Sandvik Capital Markets Day 2005/9
The tool cost representsapprox. 3-4% of the total production cost
Can lower the total production cost by 15-20%
Tooling
Overhead
Operators
Machinery&
equipment
Workpiece material
Focus on productivity and cost savings
Sandvik Capital Markets Day 2005/10
Our customers inspire our leadership in technology development
High investment in R&D
High proportion of products less than 5 years old
Over 2000 active patents
Sandvik Coromant Presentation 2005
Sandvik Capital Markets Day 2005/11
We create customer value in our Productivityand Application Centers around the world
Sandvik Capital Markets Day 2005/12
Certification of all Productivity Centers
To secure a common message
Certified by the Parent Co.
Similar premises and equipment incl. Machine Tools
Same demands on personnel and training
Sandvik Capital Markets Day 2005/13
To develop our own people in creating value for the customer
Sandvik Capital Markets Day 2005/14
To provide competitiveproducts, solutions and services
Sandvik Capital Markets Day 2005/15
…and we alwaysleave behind a proof of what we have delivered
Thank You!