low & bonar plcfiles.investis.com/lwb/2008-06-02_combined.pdf · 2008-06-02 · a good ‘hand...
Post on 08-Jul-2020
0 Views
Preview:
TRANSCRIPT
Low & Bonar PLC
Paul FormanGroup Chief Executive
Technical Textiles
Steve GoodDivision Managing Director
Today’s Agenda
• Overview of Technical Textiles
• Leading by innovating in industrial technical textiles
• Summary
A good ‘hand of cards’ to deliver exceptional earnings growth
• £50bn global market with volume growing at c. 2x GDP
• Positive underlying growth drivers
• Strong market positions
• Outstanding innovation capabilities and extended market/technology combinations
• Continuing opportunities to improve operational efficiencies in all businesses
Key growth drivers in our marketsThe underlying fundamentals are positive
• Growth in carpet tiles at the expense of broadloom in Europe and the US
• New build and refurbishment of commercial, industrial and institutional buildings globally
• Infrastructure investment in Europe and US
• European freight haulage volumes, especially Germany and Eastern Europe
• Demand for artificial sports pitches and landscapes – practice and legislation
• Agri-flation and energy cost reduction in horticulture
Technical Textiles Division – Strategic PositioningLeading market positions in all main segments …
Civil engineering
Carpet manufacture
Agriculture
Artificial grass yarns
• Leading European and Chinese supplier of woven/ non-woven fabrics and composites
• Leading European and NA non-woven supplier
• Leading Chinese woven supplier• Leading global position in industrial
greenhouse screens and premium ground covers
• Leading global supplier of grass and carpet yarns
• Leading European positions in concrete additive fibres, polymeric mats for buildings and industrial wovens
Building & Construction
Transport, architecture and print
• Leading European position for high performance technical coated fabrics
Revenue by sector
Europe 69%UK 5%
USA 15%
Technical Textiles Product and Geographical Breakdown
Revenue by geography
Divisional operating margins of 8.5%; targeting 10% +
Civil engineering
22%
Carpet manufacturing
20%
Building and construction
18%
rass 8%
Print 5% Agriculture 5%
Other 8%
Other 11%
Transport 14%
Artificial g
A consolidation strategy in industrial technical textile markets underpinned by excellence in M&A and innovation
Driveproduct/process
development
Gain market share
Improve margins
Growth
• Building our position• in current markets• entering new markets with similar
profiles• expanding technology platform to
broaden the customer offering• geographic focus Europe and
increasingly ME & Asia
• Outstanding innovation delivering real value to our customers
• clearly understanding their business
• and their needs making them more successful
Create scale
Fund innovation
Technical TextilesFinancial history
Technical Textiles Division
-
50.0
100.0
150.0
200.0
250.0
2002 2003 2004 2005 2006 2007
Rev
enue
s (£
m)
-
5.0
10.0
15.0
20.0
EBIT
* (£m
)
Revenues (£m) EBIT* (£m)
*Before amortisation and non recurring items
Technical Textiles organisation
Low & Bonar
Technical Textiles
Europe, ME, and North America
STEVEGOOD
Asia/New Business
NORBERTVERFAILLIE
Technical Fabrics
ORWIGSPELTDOORN
Technical Yarns
MARCULEMAN
Colbond
JANVAN BOLDRIK
Yihua Bonar
ZHANGYUNJI
Technical Coatings
STEFAN GEYLER
Technical Fabrics
ORWIG SPELTDOORN
Technical Yarns
MARC ULEMAN
Colbond
JAN VAN BOLDRIK
Technical Coatings
STEFANGEYLER
Today’s Agenda
• Overview of Technical Textiles
• Leading by innovating in industrial technical textiles
• Summary
Jan van Boldrik
CEO Colbond
Innovation in Colbond
You may not always see our products, but they invariably add key performance characteristics to our customers products
Colback®
You may not always see our products, but they invariably add key processing benefits to our customers operations
Enka®-Fusion
You may not always see our products, but they invariably add key performance characteristics to our customers products
Enkagrid®
Our Development and Application Centre: Where ideas turn into innovations
Colbond’s Development and Application Centre is based in Arnhem (NL).
We maintain in-house laboratories in Arnhem (NL) and Asheville (NC, USA) for:
• Improvement of current products and processes
• Support of existing technology platforms(Colback®, Enkamat®, Enkagrid®)
• Product and application development• Sales and marketing support
Spotlight on most recent product innovations
Enka®-Moss Colback® SMR Colback® F2F
EnkaRetain & Drain®
A pioneer improving air quality
Enka®-MossAbsorbs particulate matter
An Enkamat®
technology invention
Enka-Moss – The mat which absorbs particulate matter
• Three-layer composite (nonwoven fabric, moss sprouts, Enkamat)
• Benefits– Improves air quality:
Huge moss leaf surface is negatively charged and captures positively charged elements contained in particulate matter
– Requires no maintenance = saves costs • 1st field test in August 2007• Great response from potential customers
and general press
Efficiency in both horizontal and vertical use
Main application areas:
• Central reservations
• Noise barriers
• Industrial & commercial building roofs
PM captured on Enka-Moss
EnkaRetain & Drain –High-performance solution for green roofs
Substrate
Roof Membrane
Root Barrier
Drain & Filter Layer
Pre-Vegetated Mat
Growth Medium
Plant Material
Water Retention Layer
Product innovation developedto suit demands of new US market:
– Drainage core made of post-industrial recycled poly-propylene
– Multiple component/function product
– Outstanding performance – R&D work paired with industry
partnerships and support of associations
Our answer to growing ecological awareness
• Primary backing for tufted carpet tiles and broadloom carpet: Bi-component nonwoven using 100% post-consumer recycled polyester
• Developed in close co-operation with customers seeking strategic benefits from eco-friendly components in their products
• To date, the only primary backing in the market using major amounts of post-consumer recycled polyester
Colback SMR –Environmentally friendly carpet backing
• A unique innovation in the market
• High-performance Colback with one gray and one black side
• Carrier for both light and dark coloured carpet (no “grin-through”)
• Resulting flexibility offers customers significant efficiency improvements and cost savings in their tufting operations
Colback F2F –Making our customers more successful
Marc Uleman
MD Technical Yarns
Innovation in Technical Yarns
26
Box table with row header
Sentence case, not bold
Row header: • First level bullet– Second level dash
• Third level arrow
– Fourth level dash
27
Fundamentals of the artificial grass market
One of the fastest growing markets within TT…
• The use of artificial grass is estimated to grow between 12.5 and 15% per year.
• Market drivers are:- increased use in sports fields, because of better performance and reduced maintenance- landscaping, increasingly due to water restrictions.
=>One m2 natural grass in a hot climate uses up to 10liters a day!
28
Artificial grass segments: sports and landscaping
29
Drivers for artificial grass
Water is becoming a major issue in many regions of the world..
• First level bullet– Second level dash
• Third level arrow
– Fourth level dash
30
Innovation is key to securing growth
In 2007, the Grass Development Center in Arnhem has been launched
• Integrated approach to all components of an Artificial Grass Pitch (yarn, infill and backing)
• Several new products launched, one patent has been filed• In 2007, 34% of sales realized with products of less then 1 year old
31
Recent innovations in Technical Yarns
New shapes and improved polymer blends
Collaboration with leading polymer suppliers to come to enhanced product properties, leading to enhanced player comfort
32
A unique new offer in the market
- One of the main factors influencing player comfort in hot climates is pitch surface temperatures
- By applying technology developed in Military Stealth Applications, the surface temperature of Cool Grass is reduced by up to 15 degrees C.
- Patent filed for this technology
33
Leveraging expertise within the division in our innovation
• An integrated development program has lead to Colturf, the backing material used for artificial grass pitches. This combines our know how of the top and base layer
34
Box table with row header
Sentence case, not bold
Row header: • First level bullet– Second level dash
• Third level arrow
– Fourth level dash
35
Bonar Emirates TY Industries
A major step to improve our cost structure, that gives us presence in a high growth area
• Joint venture agreement with leading regional partner (Abu Dhabi Basic Industries) signed.
• This plant will capture local market and global monofilament growth.
• Start up is planned January 2009• We will be well positioned to grow market
share.• A further expansion is possible after phase 1
Steve Good
Divisional MD
Innovation in Technical Fabrics and Coatings businesses
Leading player in Agrotextile fabricsNiche products for today's global food problems
Problem Contribution of Bonar TF
Impact
Food shortage resulting in “agriflation”
Bonar is a world leader in greenhouse-screens
Screens influence the climate (temperature, light and humidity) in greenhouses. Improved climate conditions results in a higher yield. Bonar Technical Fabrics has a complete range allowing the grower to choose the best solution for his specific crop and region where he is located.
High energy prices Greenhouse-screens Screens separate hot and cold air in the greenhouse, and reflect heat radiation. Resulting in an energy-saving between 25 % and 75 %. The same production of food can be realized with less energy and less greenhouse gases.
Pollution by herbicides and herbicide-resistant weeds
Groundcovers Groundcovers have no light transmission preventing weeds to germinate. Groundcovers are water and air-permeable to keep the ground underneath in perfect condition. They are used by consumers, professional growers, and in public places.
Leading player in AgrotextileNiche products for today's global food problems
Leading in geotextile fabrics for civil engineering projects
• Geotextile : environmentally friendly product • Less aggregate in contructions• Longer lifespan and lower maintenance of structures
• Fast growing market : infrastructure needs in emerging economies(East & Central Europe, China, India)
• Fastest growing nonwoven geotextile manufacturer in Europe with unique non woven and woven product range
– Strong manufacturing footprint : Belgium, Hungary, China– Technically superior to competing products : highest raw material yield
(Weight/Tensile strength)– Excellence in manufacture and logistics with strong distribution
partnerships
Geotextiles applications
Leveraging divisional expertise to create specialist fabrics which add value to our customers
New cherry cloths• Protection• Unique confection allows grower to install and remove in a short period
Phormidrain• Taking advantage of our expanding technology/market combinations•Replacing expensive lava stones used in drainage
42
Innovation in the recently acquired Mehler Texnologies
• A coated fabric for ceiling and wall lining clamped to an invisible frame that is assembled in front of ceilings and walls.
• AIRTEX® base fabric with highly pigmented coating for an even matt and non-streaky surface and very low translucency
• No seams because of widths of up to 5 metres• Easy, low priced installation
– Easy tensioning with hot air – Base frame is low priced and quick to assemble,– No need to clear out big equipment, devices, furniture.
• Applications in retail, restaurants, bars/discos, public buildings, hospitals, private homes, booth construction
VALMEX® Ceil FR Making our customers more successful
• Movie Screen is a high-tech fabric for cinemas, projection screens, and home entertainment.
• New innovative lacquer for the final top coating leading to a matt-finish surface with a very high reflection coefficient.
• From every seat in the cinema the screen reflects light with the same light-intensity and contrast.
High contrast movie screen -Improving the experience for all movie goers
• Development of thermal regulating systems in technical coated fabrics
• Processing of „Cooloasis“ (synthetic resin)
• Absorb, store, and emit heat at a later date.
• Avoids heat accumulation
• Applications in fabrics for tents in regions with extreme variations in temperature, partition walls in offices, canopies, marquees, large-scale umbrellas
Temperature regulating composites
Today’s Agenda
• Overview of Technical Textiles markets, strategy
• Leading by innovating in industrial technical textiles
• Summary
Summary
• Our product innovation and service provision are the keys to oursuccess
• We are market leaders in our chosen areas• We have scope for both volume and margin growth
• Major capacity investments to service growth in attractive segments on stream by Q1 2009
– Carpet backing EU and ME
– Artificial grass ME Growth
– Enkamat for commercial building and construction markets
• Likely emergence of more favourable raw material markets within the next 6 -12 months
Bonar Floors - Leadership through Innovation
Mark SeftonDivision Managing Director
FloorsOverview
• Market leading player in contract flooring in U.K. and Europe• £7bln UK and European market growing at 1 x GDP • Our superior growth driven by presence in higher growth niches
and market share gain• Innovation, broadest product suite and excellent customer
service are key to organic growth• Opportunity for significant value creation through M&A
FloorsKey Growth Drivers
• Refurbishment and new build expenditure in UK/European schools, hospitals and nursing homes
• UK office refurbishment and new build levels
• Substitution of broadloom carpets by carpet tiles across the European office/retail sector
• UK/European expenditure on retail/government building refurbishment
• Non-residential new build expenditure in Central Europe and Asia
Current margins of 12%+ are sustainable
FloorsProduct and Geographic Breakdown
Tessera & Westbond32%
Flotex 35%MoD10%
Coral & Nuway17%
Chocflex 6%
Europe 40%
UK 49%
USA 2%
Revenue by geography
Other 9%
Revenue by product
FloorsFinancial history
Flotex 35% UK 49%
*Before amortisation and non recurring items
Floors Division
020406080
100120
2002 2003 2004 2005 2006 2007
Rev
enue
s (£
m)
024681012
EBIT
* (£m
)
Revenues (£m) EBIT* (£m)
The leadingEuropean entrancesystems supplier
• Removes moisture and dirt
One of two leadingUK carpet tilesuppliers
• Tiles enable access to underfloor cabling
FloorsProducts
Global leadershipin flocked flooring
• Cleanable• Resilient• Hard wearing
Specialist vinylflooring
• Sound absorbing vinyl
Leading Europeanmanufacturer ofhigh-end carpettiles
• Tiles enable access to underfloor cabling
Market leadership due to product performance
and strong brand image
Only supplier of product in
commercial widthNew digital printing
capabilities
Strong position in largest market -
France
Top of the range carpet tiling
Mid-market carpet tiling
FloorsGrowth Strategy
Organic
• New product innovations– Recycled content– Digital printing on Flotex
• Selective geographic expansion– Penetrate further into Europe– Build on existing base in Asia
• Maintenance of best in class service
• Effective selling of full range via direct salesforce
Acquisitive
• Geographic expansion• Additional product areas
Innovation & Design
Markets change and flooring is no exception
Changing product mix
New aesthetics
Focus on sustainability
Impatient customers
Web based design support
Global specifications
Local variations
‘Design is the only thing that differentiates one productfrom another in the marketplace’Norio Ohga
Whenever we have the chance we’re adding sensory,emotional appeal to the ordinary function.’Virginia Postrel
Sottsass Collection
Flotex30 years of extraordinary function
Unique performance– Water proof– Wear resistant
Unique surface– Uniform rich incredibly dense pile
… allied to process innovation
White base
6 dyes, digital design files
136 pre-dyed bases
>300 screens, >100 unique dye blends
From complexity & limited aesthetic appeal
To simplicity & design freedom
FlotexTechnology enabled marketing innovation
London Design Museum
Gent Design Museum
Blue Print
Metropolis
Interior Design “best of year” nomination
Lyon – Keith Haring
U-design
Custom recolouring or bespoke design service
Partnership collections from leading designers.
Sottsass final instalment June 08
New collaborations for 2009
Collections
Technology enabled differentiated marketing
In the world of carpet tiles there is is the proverbial “or similar”
after many architects’ specifications
Original and inspiring designs using the latest cmc texturisingtechnology are an important part of our strong and sustainable margins.
• freshness and energy• futuristic styling
• light reflection
core inspiration
• modern surface materials• urban shapes• curves and geometrics in architecture
sometimes things only make sense
when you see the bigger picture
sometimes things only make sense
Commoditized products, services
and capabilities
Commoditized products, services
and capabilities
Changes in business processes will emphasize self-service.Your costs as a business go down and perceived service goes upbecause customers are conducting it themselves.
Ray Lane, Oracle
Our newly acquired Westbond business empowers our customers with I bond technology. The ability to make just 1m2 of any colour opens an enormous colour
pallete available in different weights and fibre types.
For the ultimate in sustainable flooring we are proud to stand behind natural from Westbond
A polyester backing with 20% recycled contentThe wool yarn is completely undyedAll wool is sourced locally for this productThe product is 100% recyclable.
New Coral Logo – Customized high performance entrance matting to capture the spirit of the building.
FloorsConclusion
• The contract flooring market has differentiated channels and sustainable margins compared to the residential market
• We are market leaders in our chosen segments
• Innovation is key to our success – technology, design & marketing
• Geographic expansion will be a major driver of growth
top related