Transcript Kohler - Uniurb

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Outline
www.us.kohler.com
History
Communication
Financials
Past acquisitions
Current and planned
industrial presence
The product ranges
Kohler and it’s
competitors
SWOT
Strategy
Outline
• History
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Communication
Financials
Past acquisitions
Current and planned
industrial presence
The product ranges
Kohler and it’s
competitors
SWOT
Strategy
Kohler history in detail: industry + product development
Toilets
washbasins
of vitreous
china
Enters
electric
generator
market
1870
Kohler
foundet
First
enamel
bath
tub
One-piece
built-in
bath-tub
Brass
faucets
Starts
manufact.
faucets +
brass
accessories
Electric
kitchen
sink
Complete
bathroom
sets
with
matching
colours
1873
1883
1911
1920
1925
1926
1927
1880
1900
1920
1930
Kohler history in detail: industry + product development
Sales
by
1m$
100
anniversary
Acqui.
of
Sterling
Faucets
60
New
colours
for
plumbing
fixtures
„Bold
look
of
Kohler“
ad theme
Investm.
in cast
iron
product.
facilities
1965
1965
1971
70
Acqui.
of
1st
Furnit.
Comp.
rapid
expansion
Vitreous
china
plant
opens
in MEX
Sales
by
2m$
Joint
Venture
in
China
The 1990ties
• Master suite concept
• Product design
• Innov. toilet and showers
• Luxury whirlpool bath
1973
1984
80
1986 1987
1991
90
1995 1996
00
Communication
The four seasons of Kohler´s brand awakening
Introduction of functional and technical innovations (bath, kitchen)
Establishing Kohler as a full-line manufacturer of bath products
Concern for aesthetics and manufacturing improvement
Form and Function
1900 - 1920
The Bold Look
of Kohler
1960´s
Art, Innovation, Life
1990´s
Internal and
external growth
The four seasons of Kohler´s brand awakening
Launch of exciting, new plumbing products in vivid accent colors with
significant advertising campaign titled „THE BOLD LOOK OF KOHLER“
Campaign also solidifies Kohler´s culture and attitude (inside company)
Further lines followed:
- Whirlpool baths in an array of shapes and sizes
- Big kitchen sinks for big homes, and compact models for small apartments
- Lightweight, easy to clean fiberglass shower modules
- Faucets with interchangeable handle inserts
Form and Function
1900 - 1920
The Bold Look
of Kohler
1960´s
Art, Innovation, Life
1990´s
Internal and
external growth
The Bold Look of Kohler adv campaign
The four seasons of Kohler´s brand awakening
As consumers spend more quality time at home, Kohler continues to
meet these needs with a fresh design approach
Kohler answers the trend towards increased luxury with it´s Master Suite Concept
answers trend towards increased luxury (console tables + bath vanities +
bedroom furnishings)
Electronics and other technological improvement as for example:
- stylish toilets
- faucets
- water saving shower heads
- innovative showering products and luxury whirlpools
Decorative fixtures, textured surfaces and expressive colors
Form and Function
1900 - 1920
The Bold Look
of Kohler
1960´s
Art, Innovation, Life
1990´s
Internal and
external growth
The four seasons of Kohler´s brand awakening
In 1984, Kohler starts an expansion program based on:
- internal growth with new materials, products and markets
- synergistic manufacturing facilities
- direct access to new markets.
Currently Kohler encompasses an extensive business worldwide in the field of
- plumbing products, cabinetry and tile
- under a variety of brands
Form and Function
1900 - 1920
The Bold Look
of Kohler
1960´s
Art, Innovation, Life
1990´s
Internal and
external growth
Mission
Kohler
„Improving the level of
gracious living
for each person who
is touched by our
products and services.“
Communication Conclusions
Kohler focus on design:
• improving the level of gracious living
• Stylish, lifestyle-oriented
Kohler point out a high standard of quality and manufacturing know-how
that promotes to be innovative in terms of product design (colours, materials) and
aspects of comfort in the bathroom.
Kohler looks back at great advertising campaings
• The Bold Look of Kohler
Outline
• History
• Financials
• Past acquisitions
• Current and planned
industrial presence
• The product ranges
• Kohler and it’s
competitors
• SWOT
• Strategy
Turnover & Income statement
Kohler Co. Projected Incom e Statem ents 1998-2002 (in $ thou sand s, as of Decem ber 31)
Exhibit 6b
Net Sales
Cost of Sales
Gross Profit
Gross margin
Selling & Administrative Exp.
Amortization of Intangibles
1998a
1999
2000
2001
2002
1.511.000
1.125.884
2.240.528
1.690.366
2.393.187
1.780.531
2.509.100
1.862.103
2.608.385
1.933.387
385.116
550.162
612.656
646.997
674.998
25%
25%
26%
26%
26%
268.748
13.680
411.254
12.876
428.161
12.876
446.143
12.876
460.518
12.876
Operating Income after Depreciation
102.688
126.032
171.619
187.978
201.604
Non-operating Income (Expense)
Interest Income
Interest Expense
-6.299
2.307
11.521
-10.173
4.569
14.325
-10.783
5.670
12.987
-11.430
7.500
10.286
-12.116
9.932
8.134
87.175
106.103
153.519
173.762
191.286
Pretax Income
EBIT
Income Tax Expense
Net Income
EBITA
Sou rce:
6%
5%
38.585
48.590
3%
6%
46.071
60.032
3%
Com pany d ocu m ents: Managem ent Projections
7%
66.659
86.860
4%
7%
75.448
98.314
4%
83.057
108.229
4%
Estimated turnover 2005 : 3.1 Billion $
Estimated number of employees 32.000
Turnover 1997 by Group
7%
2%
24%
67%
Kitchen and Bath Group
Interior Group
Power System Group
Hospitality and real estate Group
Structure of Business Families
Kohler
Chairman and CEO
Herb V. Kohler Jr
Kitchen & Bath
Furniture
President Kitchen & Bath
David Kohler
Cabinetry
& Tiles
McGuire
Robern
Kohler
Baker
Canac
Kallista
Ann Sacks
Engines, generator
& rental services
Global Power Group
Ann Sacks
Golf
Sanijura
Marine generators
Ann Sacks
Mobile generators
Engines
Rental services
Jacob Delafon
Englefield
Karat
Mira
Rada Controls
Hytec
Hotels
Residential generators
Industrial generators
Sterling
Resort, recreation
and real estate
Spa
Outline
• History
• Financials
• Past acquisitions
• Current and planned
industrial presence
• The product ranges
• Kohler and it’s
competitors
• SWOT
• Strategy
Acquisitions 1985-2006
France
UK
Marocco
US
Mexiko
New Zealand
Thailand
China
*
India
1985 1993 1994 1995 1996 1998 1999 2000 2001 2002 2004 2005 2006
cws
csw
furniture
baths
tiles
taps
factory
*faucets, baths, whirlpools, lavatories, toilets,showers
enclosure
plumbing fixtures
showers
kitchen
taps
bathfurniture
wellness
tiles
Outline
• History
• Financials
• Past acquisitions
• Current and planned
industrial presence
• The product ranges
• Kohler and it’s
competitors
• SWOT
• Strategy
CSW production located all around the
world. Weakness in Europe will be
remedy with the new Russian factory
Continent
Africa / Middle East
Asia / Pacific
Asia / Pacific
Asia / Pacific
Asia / Pacific
E-Europe
N-America
N-America
N-America
S-America
S-America
W-Europe
W-Europe
W-Europe
Total
Country
Morocco
China
India
Thailand
Vietnam
Russia
USA
USA
USA
Mexico
Mexico
France
France
Spain
Company
Delafon
Shanghai Kohler
New factory
Karat
Karat Song Be
New factory
Kohler
Kohler
Kohler
New factory
Kohler Sanimex
Delafon
Delafon
Delafon
Production
location(s)
Tangiers
Foshan, Guangdong Sheng
Baroda
KAENG-KHOI (Saraburi)
Thu Dao Mot, Binh Duong
Moskau
Brownwood (Texas)
Kohler (Wisconsin)
Spartanburg, South Carolina
Ciudad Delicias, Chihuahua
Monterrey (Nuevo León)
BRIVE LA GAILLARDE ( Corrèze, Limousin)
SOISSONS (Aisne, Picardie)
SOBRADIEL (Zaragoza, Aragón)
14
Capacity
'000 pcs /yr
600
1.800
4.000
450
1.900
900
1.200
6.000
400
800
700
18.750
Production
planned
1.500
1.500
1.500
4.500
* Reference cost price = direct cost price for SAVAL wall-hang WC in battery casting
Details on some of the non-CSW factories
Continent
Africa / Middle East
Asia
Australia / Pacific
N-America
N-America
N-America
N-America
Country
Egypt
China
New Zealand
Canada
USA
USA
USA
Company
Jacob Delafon
Kohler
Englefield
Canac
Robern
Kohler
Kohler
Production location(s)
Cairo
Beijing
Glenfield (Auckland)
Thornhill, Ontario
Bristol, Pennsylvania
Searcy (Arkansas)
Spartanburg, South Carolina
Comments
Taps & mixers (Faucets)
Taps & mixers (Faucets)
Acrylic bathtubs and whirlpools
Bathroom and kitchen furniture
Bathroom furniture
Synthetic sinks
Fiberglass plumbing
Reference
cost price
6,5 €
7,5 €
7,5 €
7,5 €
7,5 €
9,0 €
20,0 €
20,0 €
20,0 €
9,0 €
9,0 €
23,0 €
23,0 €
18,0 €
12,0 €
CSW production located in such a way, that
allows a locally presence in our (future)
markets, and at the same time assure an
access to low-cost sourcing
14 production locations for CSW
Total capacities:
Europe: 1,9 mln pcs
World: 19,0 mln pcs
(New plants planned: MX, RU, IN=> >5 mpc)
Non CSW production covers all the product
categories that are part of our strategy
Industrial restructuration of non profitable
operations in Europe already planned
N-America
N-America
S-America
S-America
W-Europe
W-Europe
W-Europe
Total
USA
USA
Mexico
Mexico
France
France
Spain
Kohler
Kohler
New factory
Kohler Sanimex
Delafon
Delafon
Delafon
Kohler (Wisconsin)
Spartanburg, South Carolina
Ciudad Delicias, Chihuahua
Monterrey (Nuevo León)
BRIVE LA GAILLARDE ( Corrèze, Limousin)
SOISSONS (Aisne, Picardie)
SOBRADIEL (Zaragoza, Aragón)
14
900
1.200
6.000
400
800
700
18.750
1.500
4.500
* Reference cost price = direct cost price for SAVAL wall-hang WC in battery casting
Details on some of the non-CSW factories
Continent
Africa / Middle East
Asia
Australia / Pacific
N-America
N-America
N-America
N-America
W-Europe
W-Europe
W-Europe
W-Europe
Country
Egypt
China
New Zealand
Canada
USA
USA
USA
France
France
France
France
Company
Jacob Delafon
Kohler
Englefield
Canac
Robern
Kohler
Kohler
Sanijura
Jacob Delafon
Jacob Delafon
Jacob Delafon
Production location(s)
Cairo
Beijing
Glenfield (Auckland)
Thornhill, Ontario
Bristol, Pennsylvania
Searcy (Arkansas)
Spartanburg, South Carolina
Champagnole
Dieuze (Moselle)
Noyon (Oise)
Troyes (Aube)
W-Europe
W-Europe
UK
UK
Kohler Mira
Daryl Showers
Cheltenham
Wallasey (Wirral)
Comments
Taps & mixers (Faucets)
Taps & mixers (Faucets)
Acrylic bathtubs and whirlpools
Bathroom and kitchen furniture
Bathroom furniture
Synthetic sinks
Fiberglass plumbing
Bathroom furniture
Synthetic sinks => to be closed
Cast-iron bathtubs => to be closed
Acrylic bathtubs and whirlpools
(but to get out of economy segment)
UK-type electric showers
Shower enclosures
20,0 €
20,0 €
9,0 €
9,0 €
23,0 €
23,0 €
18,0 €
12,0 €
Outline
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•
•
•
History
Financials
Past acquisitions
Current and planned
industrial presence
• The product ranges
• Kohler and it’s
competitors
• SWOT
• Strategy
Overview Brands / Product
fields
Chairman and CEOKohler
Herb V. Kohler Jr
Chairman and CEO
Herb V. Kohler Jr
Furniture
Kitchen & Bath
KohlerCabinetry
& Tiles
Chairman and CEO
Kitchen & Bath
President Kitchen & Bath
David Kohler
& Bath
President Kitchen &Kitchen
Bath
67%
David Kohler
Kohler
President Kitchen & Bath
David Kohler
Kohler
Kallista
Kallista
Kohler
Sterling
Sterling
Kallista
Ann
Sacks
Furniture
Herb V. Kohler Jr
McGuire
Cabinetry
& Tiles
Robern
Furniture
CSW
McGuire
Baker
Cabinetry
Robern
& Shower
Tiles
CanacT
1989
1984
1989
Jacob
Delafon
Ann
Sacks
Englefield
1985
Englefield
Jacob
Delafon
Karat
2000
2002
Mira
Karat
2001
Rada Controls
Hytec
Mira
Rada Controls
1987
Hytec
Rada Controls
Hytec
Info about Karat uncompleted
Core business
Baker
McGuire
Ann
Sacks
Canac
Robern
Sanijura
Ann
Sacks
Baker
Sanijura
Canac
Ann
Sacks
Ann Sacks
Ann
Sacks
Sanijura
1873
Ann
Sacks
Sterling
Jacob
Delafon
Karat
Englefield
Mira
Bathtubs
Ann Sacks
Engines, generator
& rental services
Resort, recreation
and real estate
Engines, generator
& rental
services
Global
Power
Group
Resort, recreation
and real estate
Hotels
Engines,
generator
Resort, recreation
Taps
&
Furnitures
Tilesand real estate
Global
Power
Group
Hotels
& rental
services
Golf
Mixers
Residential generators
Marine
generators
Global
Power
Group
Residential generators
Industrial generators
Marine generators
Residential
generators
Mobile generators
Industrial generators
Marine
generators
Engines
Mobile generators
Industrial
Rental generators
services
Engines
Mobile generators
Rental services
Engines
Rental services
Golf
Hotels
Spa
Spa
Golf
Spa
Price
Overview Brands / Price
positioning
High
end
upper
middle
Karat
Prof.
US - Canada
Europe / middle east
Each brand is available through the regional Kohler sales manager
Asia / pacific
Brand architecture
Core brand
• Kohler
Main brand for worldwide use;
covers entire spectrum
Regional brand
Specialist brand
• Jacob Delafon (F,E)*
• Englefield (AUS)
• Karat (THAI)
• Sanijura (F)
• Mira (UK)
• Daryl (UK)
• Kallista*
• Sterling*
• Ann Sacks*
• Robern
*Regional brands with
complete offer
(US)
(US)
(US)
Local brands with
special offer
(US)
Kohler has long encouraged an ongoing dialogue with the art
community. Kohler works with international designers and
architects for:
– product development (2006, launch of 3 Artists Editions
‘Top Art Collection’)
– bathrooms arrangement, to show customers how a
dream Bath from Kohler could appear
(www.kohler.com).
– in the Kohler Design Center in east central Wisconsin,
where they offer educational seminar series, design
services, showroms with current range and a museum
Kohler wants to be state-of-the-art.
– Acquisitions of innovative companies (hightec, mira,
etc.),
– Launch of innovative products, that combine state-ofthe-art design with innovative technologies and take
care to save water (performance flush technology, urist
mirror with faucet, C3 Toilet Seats)
Kohler offers end consumers many ideas and services to
arrange their bathroom to a dream space for a higher level
of gracious living.
- complete bath offer
- complete bath offer
- core business tiles &
stones
- complete bath offer
- Showers, enclosures,
trays, brassware
Mixing valves,
accessories, pumps
- Bathtubs and Showers
Hydrolux® Whirlpools
Hydrolux® Air jet Systems
- Product Overview
Toilet suites / Showers / Plain baths / SPA baths / Vanities
- Product Overview
Bath / Shower moduls and doors / wirlpools, sinks, toilets
* < 100 USD / lavatory
Outline
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•
•
•
History
Financials
Past acquisitions
Current and planned
industrial presence
• The product ranges
• Kohler and it’s
competitors
• SWOT
• Strategy
As Kohler itself, most of our international competitors cover almost
the entire spectrum of bathroom products
Presence of main suppliers:
by product group
Power base
Bathtubs
& trays
Shower
enclosures
Whirlpools
Ceramic
Sanitaryware
Hydrotherapy
Taps &
Mixers
Bathroom
furniture
Installation
systems
Ceramic
Tiles
N-America
XX
(x)
X
XXX
X
XX
XX
X
(x)
American Standard
World
XX
(x)
(x)
XXX
(x)
XX
(x)
Duravit
Europe
X
(x)
XXX
(x)
Grohe
Europe
Kohler
Inax
Masco
XX
XXX
Asia
XX
X
X
N-America
X
XXX
XX
X
X
XXX
XX
XXX
X
X
XX
XXX
XX
XX
X
X
X
X
X
(ES/PT)
(ES/PT)
(ES/PT)
(ES/PT)
XX
X
Europe
Sanitec
Europe
XX
X
X
XXX
X
Asia
XX
X
X
XXX
X
XX
XX
Europe
XX
X
X
XXX
X
XX
X
Toto
Villeroy & Boch
Legend:
X
XX
XXX
= minor weight in sales of company
= medium weight in sales of company
= great weight in sales of company
XX
(ES/PT)
Roca/Laufen
(ES/PT)
XX
X
Source: Kohler research
XX
Global presence of the main competitors in CSW (2004)
Kohler : Good presence in America, limited presence in Europe
500
400
300
200
100
Europe
Ceramics
(incl. sinks and
showers)
DE
Size (m€)
278
Villeroy & Boch
American Standard
Duravit
Eczacibasi
Grohe
Inax
Jacuzzi brands
Kludi
Kohler
Masco
Roca
Sanitec
Toto
Legend:
FR
320
UK/IE
378
IT
350
BNL
102
Asia
Sca ES/PT RU
165
253
Market share (volume): > 15%
Market share (volume): >5% - <15%
Oth
EUR
173 372
JP
CN
475
702
IN
Rest
S+OA
186 >700
America
US
1.209
Market share (volume): >2% - <5%
Market share (volume): <2%
CA
100
MX
Rest
S-Am
124 >240
On the world ranking list, we estimate that
we rank #2
Duravit
CISA
1,4%
1,8%
Crane
2,9%
Inax
2,9%
Jacuzzi
3,0%
Total value as basis:
5,2 billion Euro (ASP)
Villeroy & Boch
6,5%
Toto
8,3%
Sanitec
10,6%
Roca
11,0%
Kohler
14,2%
American Standard
0%
15,4%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Market shares CSW - World
World-wide shares of main suppliers of CSW* - year 2003; coverage ca. 80% of total world market
* Due to lacking data inclusive ceramic shower trays and kitchen sinks
Source: BSRIA - Consult - Kohler research
* V&B incl. Vitromex, Roca incl. acquisitions 2006
In Europe however we are still relatively
weak at #6
Jacuzzi Brands
Qualceram Shires
Eczasibasi
Kohler
Duravit
1,6%
Total value as basis:
2,2 billion Euro (ASP)
1,8%
2,1%
2,7%
3,5%
Villeroy & Boch
10,2%
14,7%
Roca
19,0%
American Standard
Sanitec
0%
21,4%
5%
10%
15%
20%
25%
Market shares CSW - Europe
Shares of the main supliers of CSW* in Europe - year 2003 *Ceramic Sanitaryware exclusive ceramic shower trays and kitchen sinks
Source: Consult and Kohler research
* Inclusive acquisitions of Roca 2006
Outline
•
•
•
•
History
Financials
Past acquisitions
Current and planned
industrial presence
• The product ranges
• Kohler and it’s
competitors
• SWOT (only Kohler team)
• Strategy
Strengths and Weaknesses
STRENGTHS
• Internationality
– Industrial and market
presence in 3 continents
• Strong presence in the US
market in several bathroom
product categories
• Complete offer for the
bathroom (and Interior
Design competence)
– including material
diversification
WEAKNESSES
• Limited international
presence of core brand
• Weak presence in Europe
– Failure to enter the
German market
– No success in
transferring ranges from
one country to another
(Delafon/F vs Kohler/D)
– Specialist brands have
only local presence (Mira,
Sanijura)
Strengths and Weaknesses
STRENGTHS
• Family owned company (long
term objectives and outlook,
less short term pressure)
• Experience with acquisitions
and investment minded
WEAKNESSES
• Complexity of organisation
– factories
– brands
– countries
Opportunities and Threats
OPPORTUNITIES
THREATS
• Fast growth of the Asian
market will benefit to the
Kohler local presence
• Concentration in industry &
trade
• Ceramic acquisition or
alliance in Europe
Outline
•
•
•
•
History
Financials
Past acquisitions
Current and planned
industrial presence
• The product ranges
• Kohler and it’s
competitors
• SWOT
• Strategy (Current)
Current strategy
• Expansion of all kinds
– Geographically (Markets and production facilities)
• Asia : China, India, Thailand
• America : Mexico and US
– By product and material categories
– for sourcing reasons
Current strategy
• Reinforcing of the core Brand and establishing sub-brands to cover
all market segments
– Enlarge/improve the core brand Kohler
• by taking control of the quality of our distribution in the US
(Showroom programs . The Kohler Store) (US)
• Art’s involvement (Product, communication)
– Other brands:
• Creation of Kallista and Ann Sacks as a luxury brand (US)
• Be present in the lower segment with Sterling (US)
• Use specialist brands (Europe/US)