1 2011 sales meeting, sarasota, fl opw suzhou & asia pacific introduction january 14, 2011
TRANSCRIPT
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2011 Sales Meeting, Sarasota, FL
OPW Suzhou & Asia Pacific Introduction
January 14, 2011
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Content
Company Background
Strategic Intents of OPW China
Review Elements of the External Business Environment- Macroeconomics, Market Sizes
OPW China Growth Strategy
Synergy Program in Suzhou1. OPW FC2. OPW FTG3. Colder (CPC)4. De-Sta-Co
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OPW Suzhou Background
Established in February 2003, Registered Capital: $600,000
Relocated to Current Site in July 2009; Space: 7,500 Sq/Meter
Received UL Approvals in November 2003; Received ISO9001.2000 in June 2006(upgraded to 2008 version in 8/2010); received ATEX Approvals on May 2007
Total 145 Employees (Production: 110; Finance, Admin & HR: 10; Sales & Marketing: 13; Service: 12; IT Support: 1)
Production Lines (7): 3 Nozzle Lines; 66V Breakaway/Sight Glass Cell; 10-Valve Cell; Automatic Tank Gauge Sub-Assembly Line; Vapor Recovery Repair/Rebuilt Line
Capacity: 850 Nozzles/Day/Shift
Service Centers in Suzhou & 3 Regional Offices to Support Sales, Marketing & After-Sale-Service Nationwide
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Expert in Fueling Stations
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Our Mission & Vision
MISSION STATEMENT:Revolutionizing fueling operations globally by optimizing safety, efficiency, reliability, and environmental sustainability through innovative fuel handling and information management solutions.
VISION STATEMENT:Consistently deliver the most innovative and compelling fueling solutions to the world.
VALUE DISCIPLINE:
• Parity with competition on: • Customer Intimacy• Operational Excellence
Product Leadership
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Strategic Intents – OPW China
Locate the Factory in a Market Where the Local Demand Is High and Competitors Are Evolving
Create A Low Cost Manufacturing Location to Compete with Imitation Products (Inside & Outside of China)
Establish service network within Asia Pacific Region to improve customer satisfaction & competitiveness
Assist Sourcing Projects for Other OPW Operations Worldwide
Become A Manufacturing Base to Supply Labor-Intensive Products to Other Markets/Business Units
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OPW Asia Pacific OrganizationMD
Richard Chen
NE Asia Region India RegionChina Region
Fin & AdminManager
Richard Yuan
ITManagerDerek Lin
Deputy GM forSales/Service/Mkt
Rod Zhong
Finance
HR/Admin
Sales Director of China
George Wen
Sales DeptMarketing
& Admin
Tech Support
Beijing Office
Shanghai Office
Guangzhou Office
Beijing Office
Shanghai Office
Guangzhou Office
GM AssistantWatt Wang
SalesDirector
S.M.Kelkar
Fin & HRController
Anni Phadke
Sales ManagerTaiwan
Teki Huang
ASEAN Region
Sales ManagerPhilippines
Jovie Reyes
OperationsManager
Howard Nie
Production R&D
Sales ManagerSanjay Khanna
Service ManagerAshok Shinde
QCProject
PC&LCustomer
Service
Finance
HR
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OPW in Asia Pacific
Mumbai
Beijing
Shanghai
Suzhou Factory
Guangzhou Taipei
Manila
New Delhi
DFM
Chennai
Bangalore
Kolkata
OPW Asia Pacific
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Yesterday vs Today
CHINA
2003
INDIA
1010
Macroeconomic – Asia Pacific
2007-2010 World GDP Ranking – Asia Pacific (Nominal)
World economic outlook database, April 2010, IMF
Country ( rank) 2007 2008 2009 2010
China 4 3 2 2
Japan 2 2 3 3
India 13 13 12 11
South Korea 11 15 15 15
Indonesia 21 22 18 18
Australia 16 14 13 13
Taiwan 20 26 25 24
Thailand 34 34 32 30
Malaysia 39 41 39 38
Philippines 48 47 47 46
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Asia Pacific 2008-2009 GDP
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CANDA
UNITEDSTATES
MEXICO
BRAZIL
UNITED KINGDOM
GERMANY
FRANCE
RUSSIA
INDIA
JAPAN
SOUTHKOREA
INDONESIA
AUSTRALIA
Real GDP(%)
2.1 1.0
20092008
Population22.4m
AUSTRALIA
Real GDP(%)
5.8
-0.2
2009
2008
Population193.1m
BRAZIL
Real GDP(%)
0.6
-2.5
2009
2008
Population34.1m
CANADA
Real GDP(%)
20092008
Population1.34 b
CHINA
Real GDP(%)
0.8
-2.2
2009
2008
Population65.4m
FRANCE
Real GDP(%)
1.3
-4.2
2009
2008
Population:-
EUROPEAN UNION
Real GDP(%)
1.3
-5.0
2009
2008
Population81.8m
GERMANY
Real GDP(%)
20092008
Population1.18b
INDIA
7.47.47.37.3
Real GDP(%)
20092008
Population231.4m
INDONESIA
4.34.35.95.9
Real GDP(%)
-0.3
20092008
-5.3
Population127.4m
JAPAN
Real GDP(%)
1.8
-6.5
2009
2008
Population107.6m
MEXICO
Real GDP(%)
6.2
-7.92009
2008
Population141.9m
RUSSIA
Real GDP(%)
0.2
20092008
2.5
Population49.8m
SOUTH KOREA
Real GDP(%)
0.7
-4.8
2009
2008
Population62m
UNITED KINGDOM
Real GDP(%)
1.1
-2.4
2009
2008
Population309.6m
UNITED STATES
9.0 8.7
Source: IMF
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Macroeconomic Data - China
Oil CompanyOwned Sites
Market Share
Trends Comments
Sinopec 28,976 45% → 1. No. 9 in 2009 Fortune 500 2.Sold 13.3M T 2009
Petrochina 18,846 37.50% ↑ 1. No. 13 in 2009 Fortune 500 2.Sold 8.29M T 2009.
Shell 380 0.56% ↑ JV with SINOPEC
BP 700 1.03% → JV with SINOPEC & CNPC
ExxonMobile 200 0.29% → JV with SINOPEC
Total 50 0.07% ↑ plan to establish 500 Sites
Caltex 35 0.05% → 1982
Independent 43,000 15% →
92,187
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Macroeconomic Data - China
YearHigh Way
Constructions(Km)
Road Constructions
Total ( Km )
GFI For Road Construction( Million $ )
2005 41,000 3.33M 7,038
2006 45,000 3.45M 8,086
2007 53,900 3.58M 8,526
2008 60,300 3.73M 8,778
2009 65,000 3.83M 12,676
2010 74,000 3.98M 14,641
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Macroeconomic Data - China
Year No. of Cars Annual Growth
2005 31,600,000 11.00%
2006 49,850,000 57.75%
2007 53,230,000 6.78%
2008 64,672,053 21.50%
2009 71,856,993 11.11%
2010.1~10 85,000,000
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Macroeconomic Data - India
Key
MarketsGrowth Drivers Likely Barriers
> Increased Fuel Volumes # Govt. delay on Deregulation > Construction of National & State Highways across country
# Conflicting interest between Central / Regional Govt.
> Competition between State owned # Political climateand Private Marketing cos. # Volatality in Crude pricing > Govt. funding & incentives for CNG development
# Developing market & ROI sensitivity
> Environmental reforms # Huge Capital outlays> Exploration of huge gas reserves # Sustained Political will > Huge private participation> Win-Win situation for all stake holders> Conducive Govt. Policies > Per capita income growth/ disposable income > Ease of financial assistance > Aggressive marketing pursued by automobile mfrs
# Drastic change in financial support systems and ongoing reforms
Retail Stations
38140 nos
CNG Stations 468 nos
LPG stations 766 nos
Automobiles 72 M
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Macroeconomic Data - India
• Refining Capacity increase by 6-8% average per year
• Fuel Volume increase by 4-5% annually
• Vehicle population increase by 10-15% yearly
• Road construction 20 km / day
35.8
120
93
37.3
128
103
38.2
133
113
42.5
150
150
0
20
40
60
80
100
120140
160
2007 2008 2009 2012est
Retailstations(Nos)Fuel Volume(MMT)
TVP (Million)14
610
.327
.4
156
14.8 32
.8
161
12.2 30
.1
218
1541
0
50
100
150
200
250
(in
MM
TP
A)
2007 2008 2009 2012est
RefinedOutputImports
Exports
Highways Map
Growth Drivers
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Retail Market in India
OIL Company
No. of ROs
Market
shareFuture Trends Comments
Indian Oil 18140 46% Moderately aggressive,
depend on Govt. policy
Largely Govt. owned with huge geographical spread- PC
BPCL 8,387 19.7% Moving forward with caution Keen on optimal use of resources, efficiency driven- PC
HPCL 8,539 17.8% Initiate new projects, aggressively
pursuing acquisitions outside
Keen on Retail upgradation work - PC
RIL 1,456 7.3% Wait and watch strategy… Strong brand , customer preference due to perceived Q&Q - PC
ESSAR 1,434 6.6% Small outlets widely spread ,
focus on state highways Expansion gradual
Franchisee retail sales, own refinery
SHELL 74 1% Continue to add stations selectively Strong brand, efficient service setup
OTHER PSUs
12 1.6% PSU followers Regional branding
PC- Potential Customer
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Macroeconomic – Asia Pacific
AutomobilesPer 1,000Persons
HouseholdConsumptionExpendituresPer Capita
Population(Billions)
There will be a global recovery, especially emerging markets
There will be a global recovery, especially emerging markets
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12
765
China
India
U.S.A.
$663
$427
$27,972
China
India
U.S.A.
1.3
1.1
0.3
China
India
U.S.A.
Fortier & Associates, Inc.
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• AP market share gain through Innovation & product leadership
• Expansion thru local mfg, Partnerships, or Acquisition
Revolutionizing fueling operations globally by optimizing safety, efficiency, reliability, and environmental sustainability through innovative fuel handling and information management solutions
MISSION:MISSION:MISSION:MISSION:
Consistently deliver the most innovative and compelling fueling solutions to the world
VISION :VISION :VISION :VISION :
Critical Growth Strategies (Product Leadership & Value Discipline)Critical Growth Strategies (Product Leadership & Value Discipline)
Product Development
Product Development
Market Development
Market Development
Organizational Development
Organizational Development
• 11AD/11BD Nozzles• FlexWorks via local
production• Vapor Recovery
Fittings and System• Clean Energy
• Building Company Culture
• Talent Recruiting, Development, and Retention
• Succession Plans
OperationalExcellenceOperationalExcellence
• DSSI Implementation• Manufacturing
Realignment • R & D• Lean & 6 Sigma• Oracle
OPW China 2010 Strategic Plan
2011 Plan •11A Low-Cost Nozzle
• FlexWorks Line• VR Monitoring System
• CEFP
2011 Plan •Cost Reduction• Localization• More Lean• Services
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OPW Suzhou – A Shared Dover Facility
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Products Manufactured in Suzhou
OPW FC Dispensing Products OPW FMS Tank Gage
OPW FTG Loading Arm & Tanker Valves
De-Sta-Co Pneumatic Clamps
Colder Quick Disconnect Couplings
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Definition of SYNERGY:
A synergy is where different entities cooperate advantageously for a final outcome. If used in a business application it means that teamwork will produce an overall better result than if each entity was working toward the same goal individually.
Our Synergy Program
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Strategic Intents of OPW Suzhou Synergy
Leverage OPW Suzhou’s resources and experiences to facilitate other Dover Op-Cos’ presence and operations in China
Achieve better performance and efficiency by integrating common function teams among Op-Cos (better margin, lower costs)
Achieve negotiation power by consolidating several Dover Op-Cos under one roof (better leverage with local government and suppliers)
Create better image and recognition as a global company
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With OPW FTG: OPW FC manages FTG’s operations, and share Finance and Administration functions
With Colder: Colder keeps its own operations team but shares Finance, HR and Administration with OPW FC
With De-Sta-Co: Contract-Manufacturing. OPW FC provides sub-assembly and inventory management services to DSC.
Relationship After Integration
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Remarks:Highlighted in Blue, Green, and Purple mean sharing resources
OPW Suzhou
FC FTG Destaco
Sales Dept Operations
Tech Support
Finance&HR& AdminMarketing
R&D
Colder
Current OPW Suzhou Synergy Chart
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Manpower: 1.) Flexible labor arrangement for production depending on each Op-Co’s order volume; 2.) One Team for common function. This will greatly reduce management cost.
Employee Benefits: Purchasing and negotiation power (Medical insurance, meal services, group activities….)
ISO System: It is easy to expend and apply FC’s quality system to cover other Op-Cos’ operations.
Space: Flexible space management reserved for future expansion. Total floor space: 4860sqm (FC: 2500sqm; FTG: 800sqm; Colder: 500sqm; DSC: 300sqm; Open-760sqm).
High-New Tech Certificate: 15% tax preference applies to all Op-Cos under OPW Suzhou license.
Benefits for Resources Sharing
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Customers We Are Serving in China
CNPC Shell
2849
™
Thank You !