© Rheinmetall AG 2012 Rheinmetall: A Technology Group for Defence and Automotive 4th ECCO Symposium, Paris, June 15 th , 2012
© Rheinmetall AG 2012
Rheinmetall:A Technology Group for Defence and Automotive
4th ECCO Symposium, Paris, June 15th, 2012
Your Text
© Rheinmetall AG 2012J. van Gemert / June 2012
Rheinmetall Defence
2
Agenda:
1) Rheinmetall AG: Corporate Divisions
2) Offset organization at Rheinmetall
3) Cargotec support to Primes Global Business Winning:
Opportunities via Offset
4) Summary and Conclusions
Your Text
© Rheinmetall AG 2012J. van Gemert / June 2012
Rheinmetall Defence
3
Rheinmetall AG: The corporate sectors
(Fiscal Year 2011)
Sales: €2.3 billion
Employees: 11,800
Sales: €2.1 billion
Employees: 10,000
Sales : € 4.4 billion Employees: 22,000
Rheinmetall Group
Your Text
© Rheinmetall AG 2012J. van Gemert / June 2012
Rheinmetall Defence
4
Simulation and trainingReconnaissance and command systems Air defence systems
Wide range of systems for Land Forces...
Armoured wheeled vehicles
Armoured tracked vehicles Weapons and ammunitions
Your Text
© Rheinmetall AG 2012J. van Gemert / June 2012
Rheinmetall Defence
5
...and important products for Navy and Air Force
Simulation and training
Aircraft protection technologies
Weapons and ammunition
Reconnaissance and sensor systems
Naval protection systemsAir defence systems
Your Text
© Rheinmetall AG 2012J. van Gemert / June 2012
Rheinmetall Defence
6
Rheinmetall Defence:Leading positions in Europe and worldwide
� Europe’s No. 1
for ground forces
armament
(vehicles, weapons,
ammunition)
� No. 1 outside the US-
market …
� … with a strong niche-
market position for
US-Marine Corps
� European market leader
in propellants
� Global market leader
in short range air
defence systems
(40 countries)
� Unique technology
position (C-RAM) for
protection of military
assets and critical
infrastructure
� Excellent market
positions in fire control
units, reconnaissance
systems and simulation
in Europe
� Leading operator of
combat training centers
in Germany and
international markets
Ground forces technology Air Defence Weapon and Munitions Electronics/Simulation
Your Text
© Rheinmetall AG 2012J. van Gemert / June 2012
Rheinmetall Defence
77
Weapons and Ammunition Division:International Technology Leadership
� Weapons and ammunition for tank and artillery systems
� Medium-calibre weapons and ammunition
� Self-defence systems
� Propellants and powder
� Fuze systems
Your Text
© Rheinmetall AG 2012J. van Gemert / June 2012
Rheinmetall Defence
8
Helmut Merch
Supervision
Member of the
Rheinmetall Defence Board
Helmut Merch
Supervision
Member of the
Rheinmetall Defence Board
Doris Sandau
Assistant
Rheinmetall AG
Doris Sandau
Assistant
Rheinmetall AG
RWM
Gerhard Wiedmann
RWM
Gerhard Wiedmann
Joost van Gemert
Corporate Offset Management
Rheinmetall AG
Joost van Gemert
Corporate Offset Management
Rheinmetall AG
RWMJoost van Gemert
Supervision &
Prime Responsibility
RWMJoost van Gemert
Supervision &
Prime Responsibility
RDEKarl-Heinz Platzke
Supervision &
Prime Responsibility
RDEKarl-Heinz Platzke
Supervision &
Prime Responsibility
RDE
Simona Jung
RDE
Simona Jung
RADMax Kaufmann
Supervision &
Prime
Responsibility
RADMax Kaufmann
Supervision &
Prime
Responsibility
RAD
Florian Graap
RAD
Florian Graap
RLS Joost van Gemert
Supervision &
Prime Responsibility
RLS Joost van Gemert
Supervision &
Prime Responsibility
RLS
Henrik Neitzel
RLS
Henrik Neitzel
RH CanadaRaymond Houle
Supervision &
Prime
Responsibility
RH CanadaRaymond Houle
Supervision &
Prime
Responsibility
RH Canada
Dominique Berubé
France Dubord
RH Canada
Dominique Berubé
France Dubord
RDMBruce Botma
Supervision &
Prime
Responsibility
RDMBruce Botma
Supervision &
Prime
Responsibility
RMMV Bernhard Pöltl
Supervision &
Prime
Responsibility
RMMV Bernhard Pöltl
Supervision &
Prime
Responsibility
RDM
Sipho Sithole
RDM
Sipho Sithole
VinghoegJarle Skudem
Supervision &
Prime
Responsibility
VinghoegJarle Skudem
Supervision &
Prime
Responsibility
RMMV
Marius Müller
RMMV
Marius Müller
Your Text
© Rheinmetall AG 2012J. van Gemert / June 2012
Rheinmetall Defence
9
� Greece
� Netherlands
� U.A.E.
� Switzerland
� Germany
� Taiwan
� Canada
� Denmark
� Norway
� Finland
� Spain
� Romania
� Sweden
� Italy
� Hungary
� Turkey
� Belgium
� South Korea
Rheinmetall Offset Obligations in following Countries:
Cargotec GBO’s support to Primes Global Business Winning
OPPORTUNITIES via OFFSET?
Shamraeff Consulting Limited
Your Text
© Rheinmetall AG 2012J. van Gemert / June 2012
Rheinmetall Defence
About
•Cargotec is a future oriented cargo handling solutions provider
•We operate in 120 countries, in 600 different locations
•Solutions are strongly localised for customer needs
•In 2011, sales totaled EUR 3.1 billion
•Operating profit rose to EUR 207.0 million
•There are approximately 11,000 employees globally
Shamraeff Consulting Limited, part of Shamraeff Holdings, is the retained
offset and business development advisor to Cargotec GBO.
Currently Cargotec supported by Shamraeff is implementing offset solutions in:
Norway, Sweden, Finland, Canada, South Africa and Australia
Your Text
© Rheinmetall AG 2012J. van Gemert / June 2012
Rheinmetall Defence
Primes increasingly Coordinate between Sales / Supply chain and Corporate Communications, are suppliers proactive enough?
In a competitive international market place the winning of key and/or strategic business opportunities will continuously require that Cargotec GBO’s commercial offering bring real and/or perceived ‘additional value’ to its Prime Contractor customers to act as discriminators.
Offset is internationally a key discriminator for the Primes as often of more interest to the decision makers in the customer community than the equipment.
This is particularly true in the global defence sector, but occurs in many others:� Hitachi was provisionally awarded a £7.5bn contract to build carriages, with its preferred location being Newton Aycliffe. But
the scheme is dependant on Hitachi being granted the Intercity Express Programme Contract. The Northern TUC's calculations are that more than £100m a year would be saved through the creation of 800 direct jobs and 7,500 supply chain jobs.
� Unions are pressing government ministers to extract guarantees on British jobs from the Westinghouse-led consortium, which wants to build more than £10bn of new nuclear reactors in Britain. A joint delegation from Westinghouse and Shaw Group, the controversial US group recently appointed as lead contractor for the work, will fly to London next month to meet ministers from Lord Mandelson's business department and Ed Miliband's energy department. The companies have promised that "up to 80%" of the contracts to supply reactor components will go to British companies.
� German Truck and Diesel Engine Manufacturer MAN Signed an Umbrella Industrial Cooperation Agreement for an additional period of 10 Years (06.07.2010) The Company Plans Increasing its Purchases from Israeli Industries by About €15 Million in the Next Five Years.
� In July 2010, Kingho signed a memorandum of cooperation with the government to develop the mining and agriculture industries, build infrastructure and provide social support in the education sector and other areas in Mozambique. In April this year the Chinese company handed over pre-feasibility studies for construction of the projects to the government. Initial investment in logistics and prospecting work for mining is expected to total US$20M.
� In developing countries such as Nigeria, the Oil and Gas Industry Content Development Act of 2010 contains provisions to enhance local participation in all aspects of oil operations. These include specifying minimum amounts of local materials and personnel used by oil & gas operators in the country.
Your Text
© Rheinmetall AG 2012J. van Gemert / June 2012
Rheinmetall Defence
INTEGRATED
CAMPAIGN
TEAM
BU
Commercial-Profitability
-Risk Mitigation etc -(including Penalties/LD’s)
Corporate
Communications
BU
Technical Sales
Ownership of “Capture Plan”
Corporate
Export / Structured Finance(including Bonding etc)
BU / Corporate
Legal
Corporate - Business Dev / Marketing
Ownership of Country Strategy (Advisors / Agents)
Your Text
© Rheinmetall AG 2012J. van Gemert / June 2012
Rheinmetall Defence
Siz
e o
f C
on
tra
ct a
s %
of
Mo
D
Pro
cure
me
nt
Bu
dg
et
Level of Participation in decision by USER compared to CUSTOMER
USER Dominant
Who is now your Customer’s
Customer?Other Ministries (Finance, Economy etc)
will become increasingly interested/dominant.
HOW IS THE DECISION MADE AND BY WHO??(Understanding the Process and Contact Mapping are Critical !)
Your Text
© Rheinmetall AG 2012J. van Gemert / June 2012
Rheinmetall Defence
15
� Greece
� Netherlands
� U.A.E.
� Switzerland
� Germany
� Taiwan
� Canada
� Denmark
� Norway
� Finland
� Spain
� Romania
� Sweden
� Italy
� Hungary
� Turkey
� Belgium
� South Korea
Rheinmetall Offset Obligations in following Countries:
Your Text
© Rheinmetall AG 2012J. van Gemert / June 2012
Rheinmetall Defence
How can Offset Assist Business Winning for a Tier 1 Supplier/SME ?
1. Increase understanding of the “pre-contract” Marketing,
Sales and offset/IP environment of your key Prime
customers
2. Increase understanding of your own manufacturing
footprint as a supplier
3. Understand the supply chain/industrial footprint of your key
suppliers
• what are they prepared to do to keep your business /
increase their own?
4. Look for the linkages and the discriminators that can ‘value
add’ your offering in the eyes of your customer’s customer.
Your Text
© Rheinmetall AG 2012J. van Gemert / June 2012
Rheinmetall Defence
IN SUMMARY
1. Suppliers, even including SME’s can discriminate their
bids/offerings to Primes/ 1st Tier by proactively supporting
offset activities as part of relationship building.
2. Suppliers, especially 1st Tier should be aware of the
marketing and sales issues Primes have and where
appropriate at a early stage to integrate themselves into
major campaigns.