GROWTH DRIVERS DEMOGRAPHIC CHANGE

Transcription

1 GROWTH DRIVERS 2 DEMOGRAPHIC CHANGE

2 GROWTH IN SALES VOLUMES: Global needs for the creation of additional living, working and recreational space are increasingly met by using plasterboard systems, BPB's primary business In North America, the world s most developed market, annual plasterboard consumption is nearly 10 square metres per head, and still rising Activity in the more developed markets of Europe is progressing above 3 square metres per head, about half the current estimated potential, while elsewhere in expanding markets demand has yet to exceed 2 square metres per head Consumption in key emerging markets, such as Asia, is moving forward from a much lower base, but with sales volumes growing fast 3

3 ONTARIO, CANADA SECOND HOMES BPB CANADA SUPPLIED ALMOST 80% OF THE WALLBOARD PRODUCTS FOR THE BLUE MOUNTAIN RESORT, WHICH BOASTS A 137-HOME CONDOMINIUM/HOTEL AND A CONFERENCE CENTRE. CONTINUING STRONG DEMAND FOR SECOND HOMES IN CANADA AND THE US ASSISTS IN MAINTAINING HIGH PER CAPITA CONSUMPTION RATES IN THE NORTH AMERICAN MARKET DIFFERING DEVELOPMENT STAGES World plasterboard demand is characterised by average annual growth in excess of 6%, but this masks a much more dynamic global environment with many markets at differing stages of development opportunity: the European plasterboard market (comprising national markets ranging from more-developed to emerging) currently achieves long-term annual volume growth of 5% to 6%; the more advanced North American market continues to grow at a longterm average annual rate of nearly 3%; and the Rest of the World, split broadly equally between emerging markets and more developed markets, is growing much faster. EVOLVING MARKET DEMOGRAPHICS Plasterboard systems continue to record some of the best market penetration and product growth rates in the building interiors sector, as socio-economic factors driving the development of communities around the world ultimately contribute to the scale and pace of construction activity and influence the degree of sophistication adopted in local building practices. INCREASING AFFLUENCE AND URBANISATION Ageing populations, declining traditional building skills, and increasing individual capital affluence, which are apparent in the more advanced and developing economies, signal a trend towards a change in market segmentation for plasterboard usage with the new commercial sector generally reducing in segmental importance to 30% or less, all-sector repair and renovation rising to 30% or more, and new residential increasing to at least 40% in more developed markets. PRAGUE, CZECH REPUBLIC MULTI-SCREEN CINEMA AS ECONOMIES DEVELOP AND TRADITIONAL BUILDING METHODS ARE SUBSTITUTED BY FAST-TRACK PLASTERBOARD SYSTEMS, PUBLIC BUILDINGS, SUCH AS MULTI-SCREEN CINEMAS, REPRESENT IMPORTANT MARKET ENTRY POINTS DEMONSTRATING BPB S ABILITY TO MEET HIGH-LEVEL SPECIFICATIONS FOR STRUCTURAL INTEGRITY, DESIGN AESTHETICS, FIRE PROTECTION AND ACOUSTIC ABSORPTION Sustained economic growth, rising educational standards, and higher lifestyle aspirations are reflected in continuing urbanisation in emerging markets, offering the prospect of substantial plasterboard penetration in the commercial sector leading the way to greater penetration against traditional building products in the residential sector. FOCUSING OUR STRATEGY Globally there is, therefore, considerable potential for greater demand through faster penetration in emerging regions and broader applications of easy-to-install systems in developing and more developed markets. Our business leadership strategy remains clear: we seek to position BPB as the preferred choice for interior building systems that provide innovative design solutions.

4 GROWTH DRIVERS 4 ADVANCING STANDARDS

5 GROWTH IN THE VALUE CHAIN: Working closely with specifiers, distributors and installers, we are committed to meeting the diverse needs of the residential, commercial and renovation markets for interior building systems We offer the widest range of high quality, innovative building solutions for active spaces in retail, education, health care, work and home environments Operating from efficient manufacturing platforms, our aim is to optimise the product and service offering at every stage of market development 5

6 MEETING MARKET NEEDS Demand for interior lining solutions that deliver a combination of higher technical performance and creative design continues to grow, particularly in the renovation sector, and is met by BPB s increasingly sophisticated offering of plasterboard systems which conform to national and internationally approved quality standards. SHANGHAI, CHINA IBM CHIP PLANT TO MEET CUSTOMER NEEDS FOR A SUPERIOR COMBINATION OF PRODUCTS AND SERVICE, BPB BRINGS TOGETHER MULTI- NATIONAL PROJECT TEAMS WHOSE EMPHASIS IS ON PROVIDING LOCAL MARKETS WITH OPTIMUM SOLUTIONS. IN CHINA, GYPCO SHANGHAI WORKED WITH BRITISH GYPSUM TO SUPPLY IBM S PLANT WITH A TOTAL OF 7 DIFFERENT SYSTEMS USING OVER 120,000 SQUARE METRES OF FIRELINE PLASTERBOARD TO MEET FIRE RESISTANCE REQUIREMENTS RANGING FROM 30 MINUTES TO 4 HOURS MILAN, ITALY ARCIMBOLDI THEATRE BPB ITALIA S HIGHLY VERSATILE PLASTERBOARD AND CEILING TILE SYSTEMS WERE USED EXTENSIVELY TO MEET DEMANDING SPECIFICATIONS FOR STRUCTURAL INTEGRITY, DESIGN APPEARANCE AND ACOUSTIC PERFORMANCE We focus on providing locally-relevant construction solutions which are fast, reliable and cost-effective for all market stages (whether emerging, developing, or more developed), for all market segments (the renovation, residential and commercial sectors) and for all product sectors (walls, partitions, columns, floors and ceilings). PROMOTING BPB PRODUCTS Working alongside architects and specifiers, our regional business teams promote and develop BPB products which satisfy local building technology specifications for energy efficiency, comfort and safety, supplying customers with an extensive range of interior lining solutions for space division, thermal insulation, acoustic absorption, fire and humidity resistance, utilities and circuitry distribution, structural integrity and design aesthetics. DEVELOPING NEW SOLUTIONS Our marketing emphasis is on providing individual markets with the best products and customer services, whether adapting existing BPB offerings from other national markets or introducing new solutions. Best-practice initiatives groupwide are channelled locally through country management structures, with product development divided into stages incorporating formal marketing, technical and manufacturing reviews by multi-disciplinary teams, so as to ensure that improvements fit local market needs and are in conformance with changing standards. Areas under continual evaluation in BPB s integrated product innovation process include: forecasting changes in building regulations and standards, both nationally and regionally identifying future directions in building techniques and design, in collaboration with architects and other specifiers assessing the availability of recovered materials and their commercial potential

7 GROWTH DRIVERS 6 ECONOMIC DEVELOPMENT

8 GROWTH IN COMPETITIVE MARKETS: BPB invests in the growth of its core products and has an excellent business platform,with competitive market positions in most of the world s largest economies Plasterboard, where BPB holds a circa 20% global market share, continues to attract increasing demand BPB's main complementary product, building plaster, holds significant local sales profiles across a mix of highly developed, developing and emerging markets, giving BPB a global share of around 30% of branded sales volume 7

9 GROWING GLOBAL DEMAND Annual consumption of plasterboard worldwide now exceeds 5 billion square metres, with the European economy accounting for some 20% of global demand, North America approximately 55%, and the rest of the world around 25%, almost half of which relates to Japan. The product s continuing penetration and growth owes much to the combination of several significant economic factors, common in varying degrees through all stages of market development: LAS VEGAS, USA BPB WALLBOARD PLANT BUILDING ON BPB S EXISTING INVESTMENTS IN WESTROC AND CELOTEX, THE ACQUISITION OF THE JAMES HARDIE US WALLBOARD BUSINESS ALMOST DOUBLED BPB S NORTH AMERICAN MARKET SHARE AND ESTABLISHED IT AS THE CLEAR NUMBER 3 SUPPLIER IN THE WORLD S LARGEST MARKET economic growth and anticipated prosperity, the main drivers of construction activity a trend towards increasing build costs for both materials and labour more rapid build cycles in both commercial and residential sectors increasing prominence of the renovation sector POSITIONING BPB FOR GROWTH Our acquisitions in the US during the past three years have enabled us to establish a major presence in the substantial North American internal linings market. Building on our Canadian sector leadership, our wallboard market share is now around 16% and ranks BPB as the clear No.3 supplier in the world s largest market. Our European sector leadership, recently consolidated through the acquisition of Gyproc Benelux, our significant North American presence and our strong positions in South America, Southern Africa and Asia, generate group-wide plasterboard sales in excess of 1 billion square metres per annum, or close to 1 in 5 of all boards sold, making BPB the global market leader. HYDERABAD, INDIA NATIONAL VILLAGE GAMES STADIA DEMAND FOR PLASTERBOARD SYSTEMS CONTINUES TO GROW STRONGLY IN ASIA AS CUSTOMERS INCREASINGLY PREFER THE BENEFITS OF MODERN BUILDING PRACTICES AND PRODUCTS. 14,000 SQUARE METRES OF GYPBOARD FULTONE TILES WERE USED TO MEET A TIGHT CONSTRUCTION SCHEDULE AND FULFIL HIGH SPECIFICATIONS FOR ACOUSTIC AND REVERBERATION INSULATION IN THE 4 STADIUMS BUILT FOR THE 2002 NATIONAL GAMES ENHANCING COMPETITIVE ADVANTAGE Our national operating teams provide partnershipstyle support to third party distribution networks, BPB s primary route to market, delivering industryleading products and technical services which enable merchants to optimise product mix and profitability. Local business teams work with customers and leading contractors to develop new and more efficient building methodologies relevant to the market environment, with an emphasis on quality, sustainability and waste reduction. Successful building solutions are valued by the way they perform on-site, both during and after construction. Accordingly, our national businesses provide full training and technical support to contractors and applicators, demonstrating the versatility and ease of use of BPB interior lining systems and ensuring optimum installation efficiencies.

10 GROWTH DRIVERS 8 BRAND PENETRATION

11 GROWTH IN OPPORTUNITY: Developing demand for interior building systems lies at the heart of customer sales and marketing strategies aimed at enhancing BPB s growing reputation and attractiveness as the preferred supplier Sustaining or creating national brand leadership positions for plasterboard and complementary products is central to our drive for profitable sales growth Our development strategy seeks to optimise the group s operational synergies across national and regional markets having similar customer bases and channels of distribution 9

12 BUILDING BRAND AWARENESS Our business reputation and sector leadership in Europe benefits from the positive customer awareness generated by the key regional brands Placo, Rigips and Gyproc, with the prefix BPB gaining increasing recognition as a quality family brand. Similarly, in the group s emerging Asian markets, the rapid penetration of individual brands such as Gypboard and Gyproc is being achieved under a visible BPB umbrella. In late 2002, all the business operations in North America were re-launched under the identity of BPB, with all wallboard products being re-branded ProRoc. ANTALYA, TURKEY CORNELIA HOTEL AWARD WINNING ARCHITECTS FOR THE FIVE STAR HOTEL SPECIFIED BOTH SATEN AND REFINO PLASTERS FROM BPB TO PROVIDE THE SCULPTURAL SHAPES AND HIGH QUALITY FINISH NEEDED TO ACHIEVE THEIR DESIGN AND CONSTRUCTION REQUIREMENTS LEVERAGING NATURAL SYNERGIES Our marketing of an integrated portfolio of BPB systems is aimed at encouraging profitable volume growth and both individual and family brand penetration, by accelerating innovation in product and service, increasing the customer offering, and promoting sales of higher valueadded products. Logistical support represents a significant competitive differentiator for BPB, our goal being to supply customers with the best choice of interior building solutions, the fastest delivery times, the highest product quality, and the most efficient stock control. Complementary products contribute to BPB s growth and brand leadership, as businesses leverage the natural synergies between core and complementary products to provide customers with more convenient and cost-effective routes for meeting all their needs. BELGRADE, SERBIA TELEVISION CENTRE UNDER THE RIGIPS BRAND, BPB SUPPLIES EASTERN EUROPEAN MARKETS WITH A WIDE RANGE OF HIGH QUALITY INTERIOR BUILDING PRODUCTS TO MEET CUSTOMER END-USE REQUIREMENTS FOR DESIGN, SAFETY AND COMFORT. PLASTERBOARD AND CEILING TILE SYSTEMS WERE USED TO PROVIDE AN INNOVATIVE INTERNAL LINING SOLUTION AT THE BIG PINK MEDIA AND COMMUNICATION CENTRE IN BELGRADE DEVELOPING COMPLEMENTARY PRODUCTS Sales of our main complementary product, building plaster, are now well in excess of 4 million tonnes each year, making BPB the world s leading supplier of branded plaster products. We hold leadership positions in many of those key markets where finishing surfaces with easy-to-apply high-quality plasters continue to attract a loyal customer base. Other products supporting BPB s systems marketing approach are mineral wool and expanded polystyrene insulation, textures, gypsum blocks and coving, and metal-grid ceiling tile systems.