Transcript TITLE
1
Sanitec Corporation in one sentence
• is a
European multi-brand
group that • designs, manufactures and markets bathrooms
ceramics
and
bath and shower
products, • is based around
locally well known brands
• maintains a leading position as
No 1 or 2 in all its European core markets,
• strives to be a
globally
successful player in core growing markets •
is clearly No1 in
price leadership • and
driven by profitability
. We aim to have an EBIT of 15-20 %. 2
We divide our structure in Ceramics, Acrylics & Enclosures (CA&E) and Wellness, although in reality it is more generalist brands versus specialists Sanitec Allia
FR, BE (+low-range DE) CSW, Furniture, Acrylics
Kolo
PL, UA, Central Europe CSW, Furniture, Acrylics, Enclosures, Wellness
Ceramics, Acrylics & Enclosures Ido
FI, SE, NO, Balt, Russia CSW, Furniture, Acrylics, Steel, Enclosures
Keramag
DE, AT, CH, NL, BE CSW, Furniture, Acrylics, Wellness
Pozzi-Ginori
CSW, Furniture, Acrylics
Varicor
DE Composite sinks and washbasins
Selles
CSW, Furniture, Acrylics
Sphinx
NL, BE CSW, Furniture, Acrylics, Enclosures, Wellness, T&M
Panda
DIY and low-range CSW, Acrylics, Enclosures
Twyford
UK, IE CSW, Furniture, Acrylics, Enclosures, Wellness, T&M 3
Wellness Albatros
Mainly IT, also other countries Acrylics, whirlpools, MFC
Revita
Europe Acrylics, whirlpools, MFC
Koralle
DE, AT, CH Enclosures, Acrylics, whirlpools, MFC
Leda
FR Enclosures, Acrylics
Panda
DIY and low-range CSW, Acrylics, Enclosures
Ceramics (series) Central Europe Keramag / Varicor Allia F + BE Selles IT Pozzi Ginori Benelux Sphinx Central Eastern Europe Kolo Ido North East Europe Ifö Porsgrund UK + IE Twyford
Renova Nr. 1 (Profi) Renova Nr. 1 Plan (Profi) Renova Nr. 1 Pro Varicor (Profi) Join Prima (Profi) Royan 2 (Profi) Eurobase (Profi) Nova (Profi) Easy02 Bastia (Profi) Sully Preciosa 500 Montebianco Sphinx 390 Desirade Ydra City Fantasia 4 Colibrì Advent (eco) Galery (mid range)
Acrylics (series) Central Europe Koralle
Normaline
F + BE Allia Selles Albatros IT Revita Benelux Sphinx Central Eastern Europe Kolo Ido North East Europe Ifö Porsgrund UK + IE Twyford
Prima (Profi) Royan 2 (Profi) Ethos-Albatros Erica-Revita Bastia (Profi) Sully Riviera Ethos-Albatros New Vanity-Revita Market for steel bathtubs + trays 5
Enclosures Central Europe Koralle F + BE Leda Benelux Sphinx Central Eastern Europe Kolo Ido North East Europe Ifö Porsgrund UK + IE Twyford
Supra Top Tendance Supra Top Twiggy Top Twiggy Top Norma Top (Profi) Edition Edition 7-4 Solid 6 7-3 Solid Cabins* 6-5 Cabin* Cornette Cabin* *typical: complete shower cabin
Wellness (whirpools + MFCs) Central Europe Koralle F + BE Allia Albatros IT Revita Benelux Sphinx Central Eastern Europe Kolo Ido North East Europe Ifö Porsgrund UK + IE Twyford
Prima (Profi) Ethos Erica Ethos New Vanity Noon (Acryl) Accent (Acryl) Feel (Acryl) Havanna (Acryl) Progress Forte Master Plus Kalambò 6-5 & 6-6 enclosure+MFC No MFC My Time 7
History/ Strategy
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Our history (1/2)
• • Our history as Sanitec started in 1990 when Wärtsilä Corporation (later Metra) merged its bathroom activities, and our group then consisted of Ido Bathroom (FI), Ifö Sanitär (SE), Porsgrund (NO) and Evac (FI).
The success of our business model, to concentrate on the established market leader (#1 or 2), has guided us on our growth path: – In 1991 we acquired Allia (FR)and Keramag markets (DE), two leading bathroom suppliers in their home – In 1993 Pozzi-Ginori (IT) and Sanitec Kolo (PL) followed. Both companies are leading bathroom suppliers in their home markets – With FAS (FR) in 1993 we ventured for the first time into the acquisition of a specialist supplier (acrylic bathtubs). In order to conserve our focus, we integrated FAS later under Allia.
– More specialists came in 1995 with Laminex (PL; acrylic bathtubs and whirlpools) and Varicor (DE; solid surface washbasins and sinks) – In 1997 we took 50% holdings in Johnson Suisse (Malaysia), and in Lecico (Egypt), both bathroom suppliers, although tending to concentrate on ceramic sanitaryware – With Domino (IT) in 1998 we acquired the brands Albatros and Revita for acrylic bathtubs and shower trays, whirlpools and multi-functional cabins, which was not only strong in Italy, but also in several other markets.
– In 1999 we acquired most of the Sphinx -Gustavsberg Group (but “lost” Gustavsberg to Villeroy & Boch). This brought us not only Sphinx (NL), but also Selles (FR) and Koralle (DE). In this year we also bought the remaining 50% of Johnson Suisse in Malaysia.
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Our history (2/2)
• • • • • • • • The year 1999 was also important in another respect, because Metra, our mother company, introduced us on the Helsinki stock exchange In 2001 we made our (until now) latest major acquisition with Twyford (UK).
Later in 2001, the European private equity fund BC Partners took over the entire share capital from Metra and other share holders. In November we were therefore delisted from the stock exchange In 2004 we sold Evac (environmental solutions) as being a non-core activity and we decreased our participation in Lecico (Egypt) to 20% although we maintain our sourcing relationship In 2004 we also closed the loss-bringing CSW factory of Sanker in Slovakia and the acrylic bathtub factory in Hirzenhain (Germany). We furthermore announced the restructuring of the factory of Sphinx in Maastricht (Netherlands). We finally also announced the planning of a new acrylic factory near Kiev (Ukraine) In 2005 we announced: – investment of a new CSW factory in Poland – joint venture with Hocheng from China for building a new acrylic factory – joint venture with Santek ( Russia ) for the production of ceramic sanitaryware. – A review of the Alsager plant ( UK ) In April 2005 the private equity fund EQT acquired Sanitec from BC Partners In 2006 we closed the shower cabin production in Norrtälje and moved it to Mörrum 10
Our history (2/2)
• In 2003 we announced an alliance with Hindustian Sanitaryware regarding the sale of Keramag in India • In 2004 we announced a separate sales organisation for the project sector in BeNeLux 11
The main steps in our history show the consistent external growth
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As Sanitec itself, most of our international competitors cover almost the entire spectrum of bathroom products, but often more evenly spread Presence of main suppliers: by product group Sanitec
Power base
Europe
American Standard Duravit World Europe Grohe Inax Kohler Europe Asia N-America Masco Roca/Laufen Toto Villeroy & Boch N-America Europe Asia Europe Bathtubs & trays
XX
XX X XX XX X XX (ES/PT) XX XX Shower enclosures
X
(x) Whirlpools
X
Ceramic Sanitaryware Hydrotherapy
XXX X
(x) (x) XXX XXX (x) (x) X (x) XXX X X X X X XX X X X XXX XXX XXX XXX XXX X X XX X (ES/PT) X X Taps & Mixers
(x)
XX XXX X X XXX X (ES/PT) XX XX Bathroom furniture
X
(x) XX Installation systems Ceramic Tiles XX XX XX XX X XX (x) X (ES/PT) XX X X (ES/PT) XX X (ES/PT) X XX Legend: X XX XXX Source: Sanitec research = minor weight in sales of company = medium weight in sales of company = great weight in sales of company 15
Our strategy
Sanitec strives for becoming a leading European provider for bathroom solutions, with the customers and market needs as the driving force of our strategy and operations. We aim to be a global and successful player in the core growing markets, particularly in Eastern Europe, Middle East and Asia. Today, Sanitec is transforming from a decentralised group of individual companies into a single, pan European multi brand company. We are confident that acting as an integrated group, we are stronger and are enabled to realise growth opportunities today and in the future. Simultaneously, we open up the potentials of our businesses by focusing on cost leadership and efficiency on the one side, and on innovation, flexibility and outstanding customer service on the other. Our strong local brands with long established roots are cherished and valued as one of our key strengths. We compete both locally and globally, having the local knowledge and expertise as well as the understanding of the bigger picture to better serve our customers.
We do not strive to replace our strong brands by a global Sanitec brand. Indeed, we would not be able to protect our brand as this name has already been taken by local players in markets like France 16
Production
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Sanitec: production in Europe only, but with sourcing from beyond (e.g. Lecico)
Note: flags in blue indicate sourcing partners 18 Production locations Sanitec (in red) Total capacity: Europe: 12 mln pcs World: 12 mln pcs
More details on our network for ceramic sanitaryware Continent
E-Europe E-Europe E-Europe E-Europe E-Europe W-Europe W-Europe W-Europe W-Europe W-Europe W-Europe W-Europe W-Europe W-Europe W-Europe W-Europe W-Europe W-Europe E-Europe E-Europe
Country
Poland Poland Poland Russia Russia Germany Germany
Company New factory
Sanitec Kolo Sanitec Kolo Keramag Keramag Finland France France France Ido Allia Allia Allia France Selles United Kingdom Twyford Italy Netherlands Norway Portugal Sweden Russia Russia Pozzi Ginori Sphinx Porsgrund Eurocer Ifö JV Santek JV Santek
Production location(s)
Kolo Kolo Wloclawek JV
Capacity '000 pcs /yr
1.000 1.100
Production planned
1.000 Haldensleben Wesel Tammisaari Digoin La Villeneuve au Chene Limoges Selles-sur-Cher Alsager Gaeta Maastricht Porsgrund Carregado Bromölla Cheboksary Novocheboksarsk 18 1.000 500 1.000 1.000 500 500 550 1.200 1.000 750 100 1.200 1.000 12.400 - 500 - 400 250 600 950
Reference cost price
10,0 € 10,0 € 10,0 € 23,0 € 23,0 € 23,0 € 23,0 € 23,0 € 23,0 € 23,0 € 23,0 € 23,0 € 23,0 € 23,0 € 15,0 € 23,0 € 20,0 €
Comments
at 50% at 50% 19
More details on our network of non-CSW factories Continent
W-Europe W-Europe W-Europe E-Europe E-Europe W-Europe W-Europe W-Europe W-Europe W-Europe W-Europe
Country
Germany Austria France Poland Poland Sweden France Denmark Italy France Ukraine Asia China
Company
Koralle Baduscho Leda Sanitec Kolo Sanitec Kolo Ifö Allia Scandiaqualine Domino Varicor
New factory Production location(s)
Vlotho Margarethen am Moos Bayonne Minsk Mazowiecki Ozorkow Mörrum Vendome Varde Spilimbergo Wisches Kiev
Comments
Shower enclosures and MFC Shower enclosures (2step distribution) Shower enclosures and cubicles Acrylic bathtubs and whirlpools Acrylic shower trays and shower enclosures Steel bathtubs and shower cabins Acrylic bathtubs Whirlpools and spas Acrylic bathtubs, whirlpools, MFC Composite materials for sinks and washbasins Planned: Acrylic bathtubs JV with Hocheng Acrylic bathtubs 20
Global presence of the main competitors in CSW (year 2004) 500 400 300 200 100 Ceramics (incl. sinks and showers) Size (m €) Villeroy & Boch
American Standard Duravit Eczacibasi Grohe Inax Jacuzzi brands Kludi Kohler Masco Roca Sanitec Toto DE FR UK/IE 278 320 378 IT Europe BNL 350 102 Sca 165 ES/PT 253 RU 173 Oth EUR 372 JP 475 CN Asia 702 IN 186 Rest S+OA >700 US 1.209 America CA 100 MX Rest S-Am 124 >240 Legend: Market share (volume): > 15% Market share (volume): >5% - <15% Market share (volume): >2% - <5% Market share (volume): <2% 21
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Year 2005
Turnover by brand:
(in Euro)
Ido: (04) ifö (04): Kolo (04): Sphinx (03): 100 Mio 125 Mio 52 Mio 128 Mio Keramag (05): 118 Mio Koralle (05): 36 Mio Twyford (03): Allia (04): 111 Mio 170 Mio Domino (03): 54 Mio Pozzi-Gin. (03): 51 Mio Lecico
North-West Europe is where we are leading the market
Others 13,0% Poland 5,8% Finland 4,1% Denmark 4,2% Norway 5,2% Italy 8,7% Sweden 8,0% Germany 14,5% France 16,1% Benelux 8,8% UK 11,6% 23
Our strategy
current current
products
new Penetration
markets
new Internationalisation Development/ Innovation Diversification 24
We see great potential for us in raising the market share in bath and shower products
Avg 8%
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Avg 21 %
Our strategy Penetration
: current
markets
new current
products
new • keeping our
No 1 or 2
market position by focussing on cost leadership and very close contact to our customers esp. Installers • Closing the gap in European
market shares
between CSW 21 % and acrylics (bathtubs/ shower trays) 8% 26
Our strategy
current current
products
new Penetration
markets
new Internationalisation Development/ Innovation Diversification 27
Product Leader - best product - sets standards - determines Innovations Price Leader - has the best price - sets price standards - small assortment - cost leadership 28 Customer Leader - best overall solution - sets relationship standards - wide spectrum of performance - high service level
Our strategy Development/ Innovation
: current
markets
new current
products
new • we define ourselves not as the cutting edge innovator; but our strong industrial presence allows us to adopt innovations quickly at competitive prices 29
Our strategy
current current
products
new Penetration
markets
new Internationalisation Development/ Innovation Diversification 30
Land Area
Population Area Total Population
population growth demand
Our strategy
current
products
new
New markets/ Internationalisation
: • exploring
Eastern European
• acrylic factory in Ukraine • CSW factory in Poland • Joint venture in Russia markets current
markets
new • putting a foot into
Near Middle East
• investment in CSW factory Lecico (Egypt) • exploring booming project markets in Saudi peninsula • first steps in
Asian emerging markets
• Distribution agreement in India 33
Our strategy New markets/ Internationalisation
: current
markets
new current
products
new • use of
cross-marketing potentials
by introducing our existing brands into new markets • focussing on project sales with
specialised sales forces
• Northern Europe, BeNeLux, Germany, NME • moving into
new premium market segments
with products like F1, Flow, Citterio 34
Our strategy
current current
products
new Penetration
markets
new Internationalisation Development/ Innovation Diversification 35
We group business segments according to their underlying production process (volume vs. Complexity)
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Our strategy
current
markets
new current
products
new
Diversification
: • we are clearly
focussing on volume driven product
segments in the bathroom like CSW and acrylics • as our customers in the trade are the ones to combine the bathroom we do
not focus
on offering
a complete bathroom
; therefore
we do not diversify
into heating, taps, accessories, tiles etc.
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Our strategy markets
current current
products
new Penetration
!!
new Internationalisation
!!
38 Development/ Innovation Diversification
Internationality Product segment or niche driven Domestic market focus Lifestyle full liner
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Backup
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SWOT only Sanitec team
Strengths / Stärken
• • • • • • • •
Weaknesses / Schwächen
We share our expertise and competences between the group production sites.
We monitor efficiency with one standardized benchmarking method.
We share knowledge and methods.
We invest in new factories in order to improve productivity and achieve cost reduction.
We automate production processes, we copy the best practice from one factory to the others.
This leads to less starting up problems and a shorter learning curve.
We use more systematically our existing capacities, local factories are no longer meant for local markets We roll out TPM (total productive maintenance) in all our factories, we focus on eliminating waste Our factories compete internally for new products • • The sharing of knowledge and competences in automation is a one way process from Ifö to the other factories. The “not invented here” syndrome complicates the local acceptance.
Too much standardization eliminates the development and growth of new ideas and methods.
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Chancen/ Opportunities
• • The transfer/use of automation know how from other industries will help us to develop faster then our competitors.
The research of the car industry for alternative energy sources will help us to find solutions for the coming energy shortage for our gas fired kilns. General Motors starts their world research centre for alternative environmentally friendly cars in Göteborg Sweden (close to our factory in Brömolla). This will give a spin off effect.
• • • •
Risiken/ Threats
Due to the increasing ageing of the population in Europe we will encounter problems in recruiting competent technicians and operators.
This effect might also lead to increased salary costs The strong growth of the economies in China, India and Brazil creates an enormous pressure on the energy- and raw material markets and their prices. A shortage of oil deliveries with all its consequences is already expected in 2010.
There is a shortage of competent and experienced personnel for the automation projects of our factories in Western Europe.
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Strategy for low cost/high cost production
• Upper range products are produced in one or two specialized factories, smaller volumes.
• Mid and lower end products are produced in several factories, higher volumes.
• Local factories are no longer meant for local markets.
• Existing old factories are closed down and substituted by smaller automated factories. (examples: Ifö, Ido, Sphinx and Twyfords) • Cost reduction by copying the best practice to the other factories.
• Automation will increase efficiency and reduce costs. (examples in GB, NL, SE and F) 45
Sales
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Strengths / Stärken Weaknesses / Schwächen
Strong and dominant position in a lot of Europeen countries.
Wide range of products offering the complete assortment for bathrooms (total bath concept).
Strong local focus by strong well known local brands.
Through the (local) network be quick in market response and have short time to market.
Decentralized R&D focused on local market needs.
Specialist brands and production in each product category.
Diversity of brand portfolio allows flexibility regarding price levels (PG 1-5) and distribution channels (traditional, DIY) Availability and delivery service Complex product portfolio and sales organization.
Expensive marketing support due to multi brand and local approach.
We competing internally e.g. ifö and ido in the market Lack or no of corporate image/identity.
Hardly use of synergies in product development and marketing; double work Too much a European company, no global player on the market.
Not investing enough in building up brand awareness and image.
Weak awareness at final customers.
Risen demand of ROI in EQT, short term thinking and focus.
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Chancen/ Opportunities
Focusing on acquisitions and growth in new markets as eastern Europe and middle East.
Using our big nr of production units for effective benchmarking of production cost and production efficiency.
Our size allows taking active part in setting standards for CSW in Europe Technical leadership with focus on innovation.
Recovery of the construction industry in Germany, France, Benelux with growing demand.
Risiken/ Threats
Rising product cost per piece in western Europe.
Few acquisition objects are on the market due to high industry concentration rate Rapid changes in market development in eastern Europe.
Quick stagnation of the mature European markets, dependency on Europe.
Competition is faster in setting up and organize the new developing markets.
Quality at low price from China.
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More details on our market shares
Share of volume Ceramic Sanitary Ware Baths: Synthetic Baths: Steel Hydromassage Baths Shower Trays: Synthetic Shower Trays: Ceramic Shower Trays: Plastic Shower Trays: Steel/C. Iron Shower Enclosures Bath Screens Conv. Shower Cubicles Combined Products Shower Panels Bathroom furniture Taps and Mixers AT BE 5% 25% 1% 1% 0% 9% 8% 8% 3% 1% CH 5% 31% 68% 2% 6% DE 9% 3% 10% 7% 10% 2% 40% 9% 40% 10% DK 41% ES FI FR 0% 80% 18% 9% 16% 42% 2% 3% 1% 28% GR IE IT NL NO 2% 10% 13% 51% 61% 2% 17% 4% 7% 44% 2% 11% 3% 12% 1% 6% PT SE UK 0% 61% 20% 0% 8% 5% 52% 22% 2% 0% 1% 54% 9% 33% 1% 3% 49% 1% 17% 20% 5% 2% 14% 31% 3% 0% 2% 2% 7% 2% 5% 44% 2% 4% 32% 78% 3% 23% 28% 0% 1% Share of volume Ceramic Sanitary Ware Baths: Synthetic Baths: Steel Hydromassage Baths Shower Trays: Synthetic Shower Trays: Ceramic Shower Trays: Plastic Shower Trays: Steel/C. Iron Shower Enclosures Bath Screens Conv. Shower Cubicles Combined Products Shower Panels Bathroom furniture Taps and Mixers BG CZ EE 0% 18% 24% 5% 10% 2% 1% 2% 2% 1% 3% 10% HR 2% 0% 0% HU 7% 0% LT 4% 4% LV PL 7% 36% 33% RO 0% RU 2% 1% 21% 27% 6% SI SK UA 7% 30% 11% 4% 7% 4% AE 0% 1% BH 2% OM 2% 1% QT 3% 2% 3% 3% 5% 5% 0% 3% 13% 9% 2% 16% 8% 4% 14% 25% 14% 0% 3% 3% 2% 7% 1% 7% 49
Positioning
50
Strengths / Stärken Weaknesses / Schwächen
Strong local brands with long brand heritage Number 1 European ceramic supplier High brand awarenss towards consumer in countries like Skandinavia or Netherlands, Italy High brand awarenss towards the professionals in countries like France, Germany, Italy, UK Local brands allow an individual tailor-made approach on country level Cooperation with top designers reinforces brand building process Decentralized marketing structure Strong know-how of local needs is also a key success factor in communication High complexity in communication : each country has its own presentation in form of broschure, homepage, pos material – higher marketing costs Cross selling of product lines between countries offers small synergies in communication Low brand awareness towards consumer in F, Germany leads to lower pull effect of consumers 51
Chancen/ Opportunities
Globalisation of society leads to worldwide more homogenous consumers Development in societies: pleasure seeking, ageing of society -> senior citizens have high purchasing power in industrialised countries BRIC – Brasil Russia India China new younger consumer potentials
Risiken/ Threats
Demografy is destiny: missing young consumer in Europe Xxxx xxx 52
Products
53
Strengths / Stärken
Country specified assortments e.g. showers: (Koralle/IFÖ) Ceramics: (Twyfords/Keramag) Main focus on local mainstreamy lifestylish series (european style potential ) Selling of design collections under different brand names (F 1: Keramag, Sphinx) High presence within professional domain Cross selling products ( Pozzi – Sphinx 390, Sphinx-DIY, IFÖ-Russland
Weaknesses / Schwächen
Decentralised competence centers (Wellness ITA) promote development of local products ( Revita, Albatross) different levels of requirements for cross selling products 54
Chancen/ Opportunities Risiken/ Threats
High product acceptance by national consumers because of well-known regional brands High Flexibility Reduced „ Time to market “ phase by using existing local assortments High efficiency in the products and production area because of a european production network Differentiation CA&E/Wellness into different product groups such as „Volume“ and „high need of service level “ Focus on not yet used market segments Multi national product focus allows the integration of individual as well as different aspects within the domain of ethic and culture Loss of know how (Koralle/IFÖ) due to re organisation Longer process of decisions and coordination Loss of Uniqueness (F1 among different brands) xxx 55
Strengths / Stärken Weaknesses / Schwächen
Landesspezifische Sortimente (z.B. Duschen Koralle, IFÖ; Keramik Twyfords, Keramag,IFÖ)) Fokus auf länderspezifische, mainstreamige Geschmackswelten ( european styl potential) Vermarktung von Designserien unter verschiedenen Marken ( F 1 : Keramag, Sphinx) Starker Profi-Bereich Cross -selling Produkte ( Pozzi - Sphinx 390, Sphinx -DIY, IFÖ - Russland)
dezentrale Kompetenzzentren ( Wellness IT) fördern "landesspezifische" Produktentwicklungen ( Revita, Albatross) unterschiedliche Anforderungsniveaus an cross selling Produkte xxx
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Chancen/ Opportunities Risiken/ Threats
Hohe Akzeptanz bei nationalen Verbrauchern durch regional bekannte Marken Hohe Flexibilität Time to market kürzer durch Zugriff auf vorhandene, lokale Sortimente Hohe Produkt - und Produktionseffizienz durch europ. Produktionsnetzwerk Differenzierung CA&E / Wellness in "Volumenprodukte" und "beratungsintensive Produkte" Fokussierung auf nicht genutzte Marktsegmente Multi - nationale Ausrichtung erlaubt die Integration individueller und ethischer bzw. kulturell verschiedener Aspekte
Verlust von Know How ( Koralle, IFÖ) durch Neuorganisation Längere Entscheidungs - und Abstimmungswege Verlust von Uniqueness (F1 unter verschiedenen Marken) xxx
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Company
Allia Kolo Pozzi-Ginori Sphinx Panda Ido Keramag Varicor Selles Twyford Albatros Revita Koralle Leda
Markets DE BE FR NL CH x x x IT PL UK FI SE NO RU AT Balt UA IE x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Products
Bathtubs
Ceramic Furniture Acryl Steel T&M x x x x x x x x x x x x x x x x x x x x x x Enclosures x x x x x x x x x x x x x x x x x x x MFC Whirlpools x x x x x x x x x x x x x x
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Sanitec divisions
Bild Geschäftsbericht 2004, S. 11 59
Cross selling of brands into new markets
60
Steam lining of product portfolio
61
Product portfolio managment process
Bild Geschäftsbericht 2004, S. 15 62
Group legal structure
Bild Geschäftsbericht 2004, S. 23 63
Management
64
Strengths / Stärken Weaknesses / Schwächen
Our Management team understands the local needs well because they are local The management has a high degree of freedom in their decision making; this makes them independent and much faster Our management team is quiet young We have access to extensive management expertise from the Wallenberg group Xxxx Xxxx our management team has undergone some changes (CEO and CFO) we have a long history of overpredicting profits xxxx xxx 65
Chancen/ Opportunities
Xxxx Xxxx Risiken/ Threats
xxxx xxxx xxx
66
Our strategy at EQT
We have created value in portfolio companies through:
Sales growth
Increasing sales through organic growth and acquisitions.
Margin expansion
Increasing operating profits.
Strategic repositioning
Utilizing changing industry dynamics, investing in future technologies and divesting non-core businesses, thereby creating a base for multiple expansion.
Financial engineering and pay-down of debt has little impact on EQT's value creation, due to significant investments made in the businesses.
67 Print
Finances
68
SWOT Finances
Cash from sale of evac 70 Mio reduction of Lecico holding sale of Sphinx location 45 Mio 69
Our performance used to belong to the best in our industry. The acquisition of Sphinx, but especially the burdens imposed by BC Partners drove this down to an very unsatisfactory level
1.200 1.000 800 877,3 994,5985,4 951,1 898,9 496,4 570,8 630 600 400 200 0 1997 1998 1999 2000 2001 2002 2003 2004 Bathroom Ceramic Evac Bath & Shower products Total 16% 14% 14% 14% 13% 12% 10% 9% 8% 6% 4% 2% 0% 10% 5% 5% 3% 1997 1998 1999 2000 2001 2002 2003 2004 Bathroom Ceramic Evac Bath & Shower products Total 70