Garage Doors & Openers Division

Transcription

1 Garage Doors & Openers Division Investor Presentation & Site Visit 1 December

2 Agenda Introduction GDO overview B&D Australia & New Zealand Openers (ATA) Site visit Peter Boyd Noel Hopper Noel Hopper Albert Jokubaitis Sam Saliba

3 Leadership team 3

4 While GDO only generated 22% of Alesco s FY10 revenue, it contributed almost half of FY10 EBITA FY10 Revenue FY10 EBITA (before significant items) 4

5 GDO is the most developed division within Alesco 1 Diagnose 2 Fix 3 Develop and grow Diagnose the issues in our businesses and what we can do to address them; Develop and implement programmes to Fix our businesses so they can deliver improved performance; and Ultimately earn the right to Develop and Grow through further investment. Garage Doors & Openers Construction & Mining Functional & Decorative Products Water Products & Services Garage Doors & Openers has largely completed the Fix phase, is business fit and is assessing opportunities to Develop and Grow. Current status May 2011 Target 5

6 Who is GDO? GDO is Australia and NZ s largest manufacturer of garage doors and openers We employ around 650 people in Australia, New Zealand and China We have a turnover around A$170m per year, across 10 Australian and New Zealand sites Our manufacturing operations have the capacity to manufacture 400,000 doors and 500,000 openers annually Manufacturing & warehouse/sales office Warehouse/sales office AUSTRALIA CHINA Brisbane: Roller and sectional doors Dalian: Openers Perth: Roller doors Sydney: Roller and sectional doors Auckland: Roller doors NEW ZEALAND Melbourne: Roller doors Christchurch: Roller and sectional doors 6

7 What makes GDO different? R&D resources Dedicated teams of engineers work on continuous development of our products Doors 8 engineers in Australia and New Zealand Openers 20 engineers in Australia and China Superior technology Flexible manufacturing GDO has been responsible for industry-leading developments, such as: Nylofelt running strips provide greaseless, smooth and quiet operation Pinchfree panel edge shape and hinge design prevents finger entrapment between panels, on both the inside and outside Tri Tran & TrioCode coding platforms openers simultaneously transmit on three different frequencies to overcome frequency interference Our R&D and manufacturing operations provide us with the flexibility to tailor product solutions to our customers individual requirements Global experience We currently export doors to more than 25 markets around the world this gives us a global knowledge on the world of doors and openers 7

8 Safety is a core value of GDO which improves business processes and also reduces cost Initial focus on risk assessments and hazard identification and control Increasing focus now on leadership and safe behaviour development programs to strengthen the safety culture within the group 8

9 GDO leverages our strong dealer network and sales to large customers to maximise door sales Manufacturing Distribution Channels to market Doors - Australia Doors New Zealand Openers - Dalian GDO distributes to a variety of channels to market Dealers Sales to all customer types (individual customers, builders, prefab and industrial) Builders New house construction Prefab Shed and other outdoor structures builders Industrial Large industrial/commercial companies purchasing doors for specific projects Direct sales Individual customers 9

10 GDO makes a complete range of doors for residential, commercial and industrial applications for both Australia and New Zealand Garage Doors Sectional Doors Rolling Doors Speciality Doors Industrial Doors Key brands 10

11 GDO market trends New Homes Renovations Recent trends in the new housing building industry indicate that the lag period from housing approval to completion has increased, potentially from around 12 months to beyond 18 months 11

12 Project Restore while GDO has implemented most aspects of the programme over the past 3 years, there is more to do Leverage brands to optimise revenue and gross margin Improve supply chain (including manufacturing) Reduce overhead spending Reduce capital employed Roll-out Pricing Margin Program Improve Delivered in Full on Time (DIFOT) levels Expand and revitalise product range Optimise distribution network Strengthen Sales and Operations Planning (S&OP) methodologies Optimise procurement processes Reduce quality claims (improve process and contract controls) Improve labour and overhead efficiency Optimise and flex headcount Manage discretionary spending tightly Reduce inventory through implementation of S&OP methodologies Continue focus on strong debtor management Improve returns on capital investment People are our enabler and Zero-Harm will continue to be a core Alesco value 12

13 Pricing strategies have been refined to drive profitability off the back of strong brands, improved operational initiatives and product quality A new pricing margin/management framework was introduced throughout the GDO division in June 2007 The overall customer proposition has been strengthened through three key qualities: Strong, well recognised brands Strong DIFOT performance (Delivery In-Full and On-Time) Improved quality levels and lower warranty costs The pricing strategies have been continually refined to drive profitability during periods of substantial increases in the cost of material inputs 13

14 Roll-a-Door, B&D & Panelift are the 3 most recognised brands in the Australian garage door market Responses to marketing surveys (prompted brand recollection) B&D registered brands Challenge is to continue this strong recognition with the new generation of home owners 14

15 B&D Australia operates to a 5-day ex-factory DIFOT, which enables us to offer a premium product to the market S&OP has been a key enabler for improving DIFOT DIFOT has been improved from ~70% in 2007 to 91% currently Achieved through a disciplined approach in the day-to-day management of all aspects of the customer order and fulfilment process 15

16 B&D Australia s warranty returns have been halved over the last 3 years, reducing costs and improving customer satisfaction B&D Australia has instituted a comprehensive lean based operational system Tools include: Statistical process control (SPC) which has significantly increased product quality and reduced waste Weekly nonconformance report (NCR) meetings to identify and resolve errors and waste along the whole B&D supply chain 16

17 GDO makes a complete range of openers for residential, commercial and industrial applications for both Australia and New Zealand Openers Key brands Residential Rolling Door Opener (RDO) Residential Sectional Door Opener (SDO) Residential Gate Opener Industrial RDO/SDO 17

18 Offshore manufacturing delivers significant benefits for ATA All GDO openers (B&D and ATA-branded) are manufactured at an ATA plant in Dalian, China Plant commissioned in 2008/09 on budget & on-time using internal Alesco expertise in offshore start-up manufacturing First openers exported May 2009 On-site R&D capability gives significant capacity for future growth 18

19 ATA s warranty returns have been reduced by 40%, decreasing costs and improving customer satisfaction Changeover to exclusive Dalian manufacture Warranty cost reduction project commenced in May 09 Project integrated with start-up plans for Chinese manufacturing Overall product quality and reliability improved Quality from Chinese plant is superior to previous production Warranty costs will continue to decline as older production works itself out of warranty period Customer perceptions & feedback continues to improve adding to confidence and reputation 19

20 GDO the next phase GDO is poised for growth... Strong leadership New GDO leadership team is now in place Promotion from within will allow GDO to remain on track Proven R&D capability in doors and openers Business fit Increased plant capacity and capability in factory operations with improved IT systems Project Restore delivering Release of new opener range planned for 2011 Growth Development of new door products Identification and assessment of opportunities in current segments and adjacent markets 20

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