2006 Pentair Analyst Day. Jack Dempsey, President Filtration

Transcription

1 2006 Pentair Analyst Day Jack Dempsey, President Filtration

2 Forward-looking Statements Any statements made about the company s anticipated financial results are forward-looking statements subject to risks and uncertainties such as continued economic growth, including the strength of housing and related markets; the ability to successfully appeal and limit damages payable arising out of the Horizon litigation; foreign currency effects; retail and industrial demand; product introductions; and pricing and other competitive pressures. Forward-looking statements included herein are made as of the date hereof, and the company undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances. Actual results could differ materially from anticipated results. 2

3 Filtration Markets and Products RESIDENTIAL FOOD SERVICE INDUSTRIAL Water Treatment & Conditioning Control Valves, Storage Tanks and Softeners POU and POE Filtration Components and Equipment Filtration Systems, Cartridges and Softeners for Food Service and Vending Applications Industrial Filtration Components and Equipment and Softening Equipment $10 Billion Worldwide served market 3

4 Filtration Division Priorities Lean Enterprise Product Cost Productivity: Value Engineering, LCC Innovation Drive Growth IGNITE for key vertical markets FOCUS OF TODAY S DISCUSSION 4

5 What is IGNITE? is a transformational process to achieve Sustainable, Profitable Organic growth 5

6 Key IGNITE Elements - The Growth Wheel 1 Strategic Aspiration and Business Objectives 7 2 Customer Insight/ Segmentation Execution and Performance Management 6 Pricing Excellence Enabling: - Organization - Processes - Systems -Core Competencies 5 8 Sales and Channel Excellence 3 New Product Development 4 Communications & Branding 6

7 Intense Process, Proprietary Tools Intense Process Over 100 interviews with Customers, Channel Partners, Key influencers 20 to 30 managers involved per Business Intense 3 to 4 month Process Proprietary Tools Margin Percent 50% Market and Channel Maps Segmentation Competitive Landscape Core Competencies Product Innovation Brand Positioning 40% 30% 20% 10% 0% -10% -20% Pricing Waterfall -30% Total annual sales $ Millions 7

8 Filtration IGNITE Applications Food Service Residential Pro Channel High End Residential Industrial 8

9 Food Service Growth Opportunities Full Service Restaurant Limited Service Restaurant Vending/Office Coffee Grocery Convenience Store Hotel and Lodging H 2 O High Education Healthcare 9

10 Food Service Applications Coffee Expresso Soda Dispensing Ice Drinking Water Pasta Cookers Steamers Dish Washing 10

11 Consumer Attitudes: Restaurant Water Q: When you visit a restaurant, would you like to know if it uses a drinking water filtration system? 31.1% 68.9% Yes No 11

12 Food Service Operator (FSO) Access Everpure Distributors and Dealers Equipment OEM s Expand Distributor Network, New Dealer Service Offerings Partner with OEM s Major Chains, National Accounts Service Providers 12 National Account Focus ( Total Water Management ) Partner with Service Providers

13 Partnership New Ecolab programs Current Offerings: Everpure co-branded filtration New Modular Filtration platform New Softening platform Good year-over-year growth New initiatives launched in September, October New product introductions planned for 2007 National rollout: - new Fresh20 in May - new Soft20 in June. 13

14 Filtration - Solving Customer Water Needs KITCHEN RO systems UV systems In-Line Cartridges Faucets Hot/Cold Water Dispensers Water Coolers Refrigeration Filters BASEMENT Water softeners Whole house UF Whole house filtration Storage tanks BATH ROOM POU Filtration Faucets Enhancing the quality of drinking water, softening water and protecting appliances Our vision: drive growth by solving customers water needs through our breadth of Pentair products and solutions 14

15 Market Map North America Component/ Product Manufacturer Softener /Assemblers Branded OEM Pentair Current Strength Growth Opportunity Plumbing Wholesale Water Dealers Mass Retailer/DIY Kitchen & Bath Well Drillers Plumbers Growth Rate (%) Home Builders $XM Softener sales $M $M $M $M $M $M $M $M $XM Filtration sales END USERS $M $M 15

16 Pro Channel Initiative Dealer Network Segmentation Voice-of-Customer (VOC) analysis Service requirements Capability Assessment Consumer research awareness and need identification 16

17 Pro Channel Strategy and Actions Vision: Pentair Dealers as the Local Water Experts The place to go to solve water problems Expanded Sales force - supporting Dealer network Cross-selling all Pentair products Pentair Water University Financing Program Customized Marketing Materials (web-based) Dealer input to Product Development New products and solutions Web capabilities Dealer Loyalty Programs 17

18 High End - Everpure 18

19 Target Market Age: 35-54, Income: $100K+/Yr Professional/Executive/Managerial College Education Lifestyle: Health Oriented Size: 3.5M Households Total Market Potential: $$ Billion Water Treatment Use: <40% Undersink Use: <15% Everpure Share: 1.5% of households 19

20 IGNITE Strategy to Drive Growth Enhance and Expand Distribution Network Expand Presence within Channel Expand Product Portfolio Support with Marketing and Merchandising Programs/Services 20

21 New Product Offering Luxury water for the entire home Kitchen Filters/RO Faucets Instant Hot Chiller Prep & Bar Bath Whole House 21

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23 Industrial Filtration Attractive Market Size: $7B US, $20+B Global Very Good Market Growth Profitable: Margins, ROS, ROIC Large Segments through Distribution Fragmented Competitor share Growth opportunities in Pre-Filter market and High Efficiency market Strong Pentair growth in 2006 (Krystil Klear Acquisition) 23