Investor Presentaiton
SFP cost savings by lever
Cost savings by lever
(in CHF millions)
✓ See details on following slides
1
3
SULZER
2
~200m
2017
PE
CT
2018 steady
Procurement operational
G&A
Service Go-to-market operational
state
excellence
excellence
■ Comprehensive program across all functions and divisions
■ Procurement, G&A and Operational Excellence are the main levers
■Short term (2015) impact delivered by procurement and CT Operational Excellence
35
2016
Cost savings
2015 of CHF
36m (vs. 18m
expected)
Bond Investor Presentation
1
New procurement organization fully staffed and
with significant success already in 2015
SULER
Objectives
Establish new global
procurement
organization and
advanced sourcing
processes
Clearly defined sourcing
strategy by category
Establish full spend
transparency and strict
demand control
Reduce direct spend
by ~5% across major
categories, reduce
indirect spend by ~9%
SULZER
Achievements
Savings achieved based
on both short-term re-
negotiations and
reengineered mid-/ long
term procurement
processes/strategies
Direct categories: shift to
best cost region for
machined castings and
motors delivered
CHF ~4m savings
Indirect categories:
logistics, travel and
insurance of CHF ~10m
combined
36
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