David Ball Group plc.

WE MAKE CONCRETE MATTERLeading the world in concrete solutions

By:Brad WyllieJoAnn SwankMehul PatelOwen FayerYamini Bammi

The Dubai Fountain

Company Overview

Opportunity Statement

Succession Planning/Wealth Creation

Brand Awareness4

2

1

Conclusions

3

5

Agenda

Founder David Ball

•UK-based•Concrete industry

PUDLO

•InstaRange•SpecialistSand•New products

•Contractors•Architects•Engineering and Construction firms

•£3M~ revenue•£500K profit•26 employees•New facility•Customers: Morrisrow,Galldris,Expanded Ltd.

Company Overview

19702011

Products Target market

www.davidballgroup.co.uk

Financials

SWOT Analysis

Strengths Weaknesses

• Innovation

• David Ball’s vision

• Family-run work culture

• Lack of PUDLO product awareness

• Lack of succession plan

Opportunities Threats

• Company tech knowledge base

• Concrete community

• Carbon footprint reduction

• Markets expansion (UK, Europe, Asia, North America)

• Limited product range

• Concrete viewed as a “commodity”

• Competitive landscape (Everdure Caltite vs. PUDLO)

Organizational StructureDavid Ball ChairmanDavid Ball Chairman

Jackie BallStrategic PlanningJackie BallStrategic Planning

Chris HowardMDChris HowardMD

Hugh PurserNon Exec DirectorHugh PurserNon Exec Director

Rowan SwanserOn-site QA ManagerRowan SwanserOn-site QA Manager

Prof. Peter HewlettR&D DirectorProf. Peter HewlettR&D Director

Oliver MinettProduction DirectorOliver MinettProduction Director

Martin LiskaR&D ManagerMartin LiskaR&D Manager

Overseas office and distributorsOverseas office and distributors

Alan SleighCommercial Mgr.Alan SleighCommercial Mgr.

Deirdra McNeilMktg. Mgr. Deirdra McNeilMktg. Mgr.

Gillian WellsFinancial Mgr.Gillian WellsFinancial Mgr.

Martyn SmithPUDLO Mgr-Groundworks

Martyn SmithPUDLO Mgr-Groundworks

Total employees: 26

Future

Business

Strategies

Succession

Planning

Brand

Awareness

*

Wealth

Creation

Opportunity Statement

Road to Succession = ESOP

• Employee Stock Ownership Plan (ESOP)• Practice of companies giving employees

shares in the company • Allows employees to become owners of

stock in the company

•Profit-sharing•Tax benefits(Share Incentive Plan)

•Responsible to “internal” shareholders•Effective decision-making

•Commitment•Productivity•Employee control•Work culture•Career development

•Continuity•Sustainability•Long-term customer relationships•Low staff turnover

Employee

ownership

Business

continuity

Management

accountability

Financial

benefits

Why ESOP?

Why not ESOP?•Trust and management structure issues - conflict of interest•Family conflicts

•Largest ESOP retailer in UK•Trust manages partnernship•Governance –council and board•Share Incentive plan•Satisfying long-term careers

•Share Incentive Plan •Council - safety valve for employees’

•Special ownership structure•Charitable foundation•Industrial trust•7% family owned•Entrepreneurial freedom

•Employee benefit trust holds 100% shares•Dividend •Employees main “capital”

John

Lewis

SavantTullis

Russell

Bosch

ESOP Successes

Securing a strong mutual future

Ownership and governance

Legal and technical considerations

ESOP

Stage 6

Stage 5

Stage 4

Journey to ESOP

Planning leadership and engagement

Building a viable business

Stage 1

Stage 3

Stage 2

Options appraisal

• Time 6 ~ months • Legal fees

Employee Benefit Trust

• Goal: Maximize shareholder value• Stock distribution 51% Ball family, 49%

employees– “Golden shares” repurchased by trust

• Structure: Chairman + 4 directors that represent family, employees, legal, and finance areas

• Charter: – Veto power on company sale, relocation, acquisitions,

mergers– Profit sharing schemes with board approval– Support employee loans for stock purchase

David Ball’s LegacyConcrete Society

Concrete

Education

R&D

Technology

Pioneer

Ethics-

based

Culture

Legacy

Customer Relationship

• Scholarships• Internships• Fellowships• Partnership with

Engineering schools

• Grants• Social service• Environmental responsibility

• Mitigation of family disputes

• Establish corporate governance

• Develop family talent

Institute

Institute for

Family

Business

Foundation

Legacy Preservation

Brand Awareness

• Increase domestic market footprint• New Markets: Singapore, Indonesia,

Central /Eastern Europe, Germany and N. America

• Maintain and expand footprint in current markets

• Innovation in Green technology• Social media: Facebook, Twitter• Updated website (customer focus,

testimonials)• Industry related-conferences/trade shows

Future

Business

Strategies

Succession

Planning

Brand

AwarenessWealth

Creation

Opportunity Statement

Conclusions

• Create and share wealth via ESOP• Suggested path to business succession• Create structure for innovation,

continuity, and sustainability • Maintain legacy• Expand brand awareness

References

Internet Linkshttp://www.bosch.com

http://www.cipfa.uk/pt/download/governance_standard.pdf

http://www.employeeownership.co/uk

http://www.kohler.com

http://www.institututeforfamiybusiness.com

http://www.sesadvisors.com/ESOP_casestudies/

Interview SessionsChris Howard, Interview at the company, September 26, 2011

Chris Howard, Telephone Interview, September 27, 2011