ncc roads aggregates, asphalt, paving and road services · 2016. 6. 16. · aggregates road...
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NCC RoadsAggregates, asphalt, paving and road services
Göran LandgrenBusiness Area President
May 29, 2013 NCC AB 1
Brief facts NCC Roads 2012
May 29, 2013 NCC AB 2
Sales
SEK 12,211 MOperating profit
SEK 413 M
Average number of
employees 4,209Capital employed
SEK 3,089 M
May 29, 2013 NCC AB 3
NCC Roads – value chain
• 30 million tons/year
• 225 crushing plants
• 6.5 million tons/year
• 100 plants
• 5.4 million tons/year • 39,000 km of road
Road servicesPavingAsphaltAggregates
May 29, 2013 NCC AB 4
Market position 2012
213
113
423
533
3
Source: NCC’s own figures
15%
Asphalt and paving29%
12%
Aggregates
Road services
Market shares
Geographic marketsAggregates, asphalt, paving and road services, share of sales 2012
May 29, 2013 NCC AB 5
Sweden 49%
Denmark18%
Finland12%
St. Petersburg2%
Norway19%
Product mixAggregates, asphalt, paving and road services, share of sales 2012
May 29, 2013 NCC AB 6
Aggregates 18%
Road services 18%
Asphalt and paving64%
Customer mixAggregates, asphalt, paving and road services, share of sales 2012
May 29, 2013 NCC AB 7
Municipalities/County Councils18%
Private customers 49%
Internal in NCC 7%
Government 26%
NCC Roads strategy
May 29, 2013 NCC AB 8
May 29, 2013 NCC AB 9
NCC Roads’ strategic activities2012-2015
Stronger position in Denmark and Finland
• Aggregates
Develop position in the value chain
• Recycling
• Road services
Expand in Norway
Target: sales growth ≥ 2 times GDP growth
Industrial
May 29, 2013 NCC AB 10
Business conditions
Priority 2Priority 1
Road servicesAsphaltAggregates
High Medium/Low Medium
High Medium Medium
High High Low
Entry threshold
Profitability potential
Capital requirement
Profitable growth
May 29, 2013 NCC AB 11
Net sales 2004-2012*
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2004 2005 2006 2007 2008 2009 2010 2011 2012
* Excl. items affecting comparability, e.g. Poland
Annual growth 8%
SEK M
May 29, 2013 NCC AB 12
Operating profit 2004-2012*
0
50
100
150
200
250
300
350
400
450
500
2004 2005 2006 2007 2008 2009 2010 2011 2012
Rörelseresultat
How?
* Excl. items affecting comparability, e.g. Poland
SEK M
Profitability
May 29, 2013 NCC AB 13
Operational excellence
Continued growth
Higher Profitability
Differentiation
Mature marketMore competition
Operational excellence
May 29, 2013 NCC AB 14
Prioritized project
Roads United
May 29, 2013 NCC AB 15
New Group-wide work method and IT systems to increase synergies within the business area and integration with customers
Prioritized project
Capital rationalization in the asphalt operation
May 29, 2013 NCC AB 16
Increased production efficiency and more effective utilization of machinery
Prioritized projects
Pricing of aggregates
May 29, 2013 NCC AB 17
Highlighting the operation to generate better conditions for value-based pricing
Prioritized projects
Review of road services
May 29, 2013 NCC AB 18
Nordic coordination to increase internal efficiency and added sales
Differentiation
May 29, 2013 NCC AB 19
Effects of CO2 emissions
May 29, 2013 NCC AB 20
August 24, 2008 Sept. 5, 2012
DifferentiationCustomer survey
May 29, 2013 NCC AB 21
35% of customers are willing to pay more for a product that will reduce CO2 emissions
May 29, 2013 NCC AB 22
NCC Green Concept®Notable examples
NCC Green Asphalt ®
– patented production method for hot asphalt produced at lower temperatures
NCC Recycling ™
– concept for recycling aggregates, excavated material, etc.
NCC Green Road ®
– paving that produces less rolling resistance
NCC Spuma ™
– weed control based on hot water, coconut and corn sugar
NCC Viaco ™
– paving with prolonged service life and low maintenance costs
NCC Snow melting ™
– process for melting and cleaning snow using water
NCC Green Fuels ™
– renewable fuel, e.g. wood pellets in asphalt production instead of oil
NCC Green Quarry ™
– method for continuous environmental improvements in and around our quarries
We are now paving the way for renewable energy
ncc.se/greenfuels
May 29, 2013 NCC AB 23
May 29, 2013 NCC AB 24
Wood pellets to replace fossil fuels in our asphalt facilities
Wood pellets facilitate sustainable asphalt production
May 29, 2013 NCC AB 25
Asphalt plants fuelled with wood pellets instead of oil
Significantly reduced carbon dioxide in manufacturing process
Energy-efficient method
Limited use of non-renewable resources
Does not compete with food production
For NCC, this entails that CO2 is reduced by 154,000 tons annually
Corresponds to emissions from 73,000 vehicles
Technology is specially developed and patent is pending for NCC
NCC Recycling™
May 29, 2013 NCC AB 26
May 29, 2013 NCC AB 27
NCC’s objective is to secure a leading position in the Nordic market and establish 30 new recycling terminals by 2016
We resolve one problem in society by responsibly managing recoverable material
What is NCC Recycling?
May 29, 2013 NCC AB 28
NCC Recycling is the name of NCC’s new Nordic recycling concept
The terminals will be able to receive and refine primarily asphalt, concrete, aggregates, earth and excavation material, as well as park waste
In addition to the recovered material, all terminals will also be able to sell virgin material
If needs and conditions exist locally, the terminals will be combined with landfill
Our target group comprises both private and public players
Example of areas of use
May 29, 2013 NCC AB 29
• New asphalt mix• Filler and subbase
• New soil• Excavation material
used as filler
• Filler and subbaseat road works
• Filler mix for cycle roads and parking lots
• Filling of building sites and refilling around buildings
• Mix for cobblestones
AGGREGATESSOIL & EXCAVATION
MATERIALCONCRETEASPHALT
• Increased profitability and continued growth through:
• A series of operational excellence initiatives
• Differentiation through distinct offerings of proprietary products and NCC Green Concept products
• Strong value chain
• Market leading position
• Stable profitability
Summary
May 29, 2013 NCC AB 30
Starting point
Strategies