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Update TÜV NORD GROUP. Dr. Dirk Stenkamp, Member of TÜV NORD AG Management Board Marketing & Sales Meeting, Essen, 02.12.2013. Status report BU IS: germany / international. BU IS Germany, Full Year 2013. BU IS International, Full Year 2013. + 0,6%. + 1,2%. (+ 4,6%)*.
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Update TÜV NORD GROUP Dr. Dirk Stenkamp, Member of TÜV NORD AG Management Board Marketing & Sales Meeting, Essen, 02.12.2013
Status report BU IS: germany / international BU IS Germany, Full Year 2013 BU IS International, Full Year 2013 + 0,6% + 1,2% (+ 4,6%)* Source: FR Group Report, October 2013. Source: FR Group Report, October 2013. • Germany: Turnover growth in other sectors overcompensates the decline in nuclear. • International business: • Restrained developments in Spain and China. Corrective Measures ongoing / effective. • Negative currency effects affect turnover growth (-4%).* • From group perspective: International business approx. 25% of total Group turnover. • Strategic Targets: • Germany: Major turnover and earnings generator of TÜV NORD GROUP, but limited market potential Secure and expand established market position. • International business: High growth potential for TÜV NORD GROUP Significantly increase turnover share of international business. * Negative currency effects especially in South Africa, India and Brazil. Dr. Stenkamp│ Update TÜV NORD GROUP│ Essen, 03.12.2013
Implementation of new Matrix-based structure allowing to capture growth Future: Integrated Matrix-Organization Past: Strict Separation …. BU 3 BU 5 BU 1 BU 2 BU 4 Products Germany TNI BU 2 BU 3 BU 1 RM1 Region 1 Region 2 RM2 + Region 3 Regions RM3 Region 4 RM4 Region 5 ….. Region 6 Region 7 • “Market place” matrix with BU-IS as “front-runner” • BUs (including Regional Managers) driving business development, priority setting across products, new business models • Regions driving territorial growth, based on regional strategies, aligned across all BUs • Regions acting as pilot for new products/business models (e.g., food lab in Pune/India) Dr. Stenkamp│ Update TÜV NORD GROUP│ Essen, 03.12.2013
four Layers of growth: Strong support by M&S Activities needed Potential “go-to-market” Sales € 1.1b TŰV NORD GROUP 2020 Today = M&S relateddimension Time Dr. Stenkamp│ Update TÜV NORD GROUP│ Essen, 03.12.2013
New idea / Cross-region Organic Growth: Entry into semiconFabs • KOREAN Semiconductor Manufacturer Market: • • No. 2 (Samsung) & No. 8 (Hynix) in global semiconmarket • • No. 1 in Memory Semicon market(Samsung) • • Hydrofluoric Acid Leakage Accident (Samsung Hwaseong facility) • • Korean Government to improve Facilities & Equipment on toxic chemicals • INCOK maintenanceproposalunderprocess(Samsung) plus Joint SafetyAssessment Project with Siemens • Since Samsung is Global #2, abilitytocopy-exactlyforvariousothermanufacturersacross FEA/ SEA: • Taiwan (TSMC, UMC, ProMOS, Innotera) • China (SMIC, GRACE) • Malaysia (Infineon/Inotera) Networking / Interaction during M&S Meeting: „Gettoknowwhatothersaredoingandthinkaboutapplicability in yourcountry“ Dr. Stenkamp│ Update TÜV NORD GROUP│ Essen, 03.12.2013
New Market Entries 2013/2014 Canada • Project leader for foundation of legal entity: Mr. Ulf Theike • Project leader for M&A activities: Dr. Thomas Werner Market entry initiated • Currently: 3 managers in Mexico with focus on validation and verification of carbon emission reduction projects & ISO:9001/14001 audits • Foundation of legal entity with focus on certification under evaluation Market entry under evaluation Dr. Stenkamp│ Update TÜV NORD GROUP│ Essen, 03.12.2013
Innovation in Technology and services as unique selling proposition Dr. Stenkamp│ Update TÜV NORD GROUP│ Essen, 03.12.2013
Technological change: Example composites Global demandfor CRP1 in kilotonnes Examples Risingdemand forcomposites Aviation A350: >50% composites Automotive 2 2 2 BMW i3: Passenger compartment made of CRP1 Source: AVK, Composites Market Report 2013. Comments: 1) CRP = Carbonfibrereinforcedplastics / 2) Estimations. Implications: New technologicalknow-how, newtestingprocedures Dr. Stenkamp│ Update TÜV NORD GROUP│ Essen, 03.12.2013
Customer Orientation asbasisfortechnologicalinnovation From Manufacture to Industry 4.0 Share of IT andelectronics in theproductionprocess >30% 15-20% 0-5% Stahlofen/ Presse Year 1960 2013 2030 From Car toConnected Car Share of IT and electronics in the product >30% 20% 2% Year 1960 2013 2030 Soruces: Forrester 2013, Automobil Produktion, TU München, IBM 1965, PwC Analyse „Toknowtomorrow‘scustomerneeds“ – or: „Toknow, what will beimportant“ Dr. Stenkamp│ Update TÜV NORD GROUP│ Essen, 03.12.2013
Innovation in Methods and TOOLS to improve Operational Performance Example: Miller HeimanStrategic Selling Approach Understanding the Degrees of Buying Influence • Examples: • Brand • Lead-time • References Medium Some influence for this sale Excerpt The Sale High Dominant influence for this sale LOW Little influence for this sale • Examples: • Technical Competence • Proximity to Customer • 24/7 Customer Support • Examples: • Price • Form of Audit Report Dr. Stenkamp│ Update TÜV NORD GROUP│ Essen, 03.12.2013
Summary • International Growth TÜV NORD GROUP • TNG Leadership Model: Integrated Matrix-Organisation • Operative Growth along 4 dimensions • Initiatives for new products, new markets and new business models • Innovation in Technology & Services as unique selling proposition • New technological know-how, new testing procedures • „To know tomorrow‘s customer needs“ – or: „To know, what will be important“ • Implement innovations in methods and tools to improve operational performance Dr. Stenkamp│ Update TÜV NORD GROUP│ Essen, 03.12.2013
Back-Up Dr. Stenkamp│ Update TÜV NORD GROUP│ Essen, 03.12.2013