managing for personal use only bayswater, victoria ...business strategy 28 for personal use only....
TRANSCRIPT
MANAGING DIRECTOR’S
PRESENTATION Annual General Meeting
20 November 2013
at offices of Marbletrend Pty Ltd, Bayswater, Victoria
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BUSINESS AND INDUSTRY OVERVIEW
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BUSINESS AND INDUSTRY OVERVIEW
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• MBD Corporation Limited is a strategic investor in building products suitable for both consumer and commercial markets. Primary investments are in the key Australian bathroom products brand, Marbletrend and a joint venture in the Melbourne CBD business, Citywide Concrete and Building Supplies.
• MBD has implemented strategic plans to continue to profitably grow both organically and via acquisition.
MBD Corporation Limited
2012/13 SUMMARY 4
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Our vision is to be widely recognised by home owners and commercial clients for the continuous innovation and enhancement of fashionable and quality products for the home or commercial use. We strive for our customers to be confident that our businesses will deliver reliable, fit for purpose products, strong in stock positions, accurate and on time deliveries, knowledgeable and responsive customer service and no fuss administration and after sales service.
MBD Corporation Limited
2012/13 SUMMARY 5
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MARBLETREND Pty Ltd
• Designs, develops and sources quality bathroom products to suit residential and commercial applications
• Manufactures shower bases in Australia • Sources product from China and Europe
2012/13 SUMMARY 6
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• Marbletrend sells products into the hardware, building and plumbing supplies sectors to all major retailers, creating demand with consumers and end users
• Our markets are: – Home improvement – Renovation – New building and construction – Commercial – Mining
MARBLETREND Pty Ltd
2012/13 SUMMARY 7
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• Citywide Concrete and Building Supplies manufactures concrete at our new state of the art plant as well as supplies bulk sand and screenings to projects
• Citywide is based in the strategically important CBD area of Melbourne, servicing the commercial construction market
• Our markets are concreters, commercial builders and civil construction
CITYWIDE Holdings Pty Ltd
2012/13 SUMMARY 8
2012 / 13 SUMMARY
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2012 / 13 SUMMARY
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• Difficult trading conditions: – New construction declined – Renovations constrained due to consumers saving
more rather than spending – Mining projects cancelled or postponed
• Gross margins held despite severe price competitiveness as competitors looked to sell volumes at any cost
• Expenses reduced significantly • Major action taken on end of collection product lines • Continued roll out of strategic programme to ensure strong
platform for when market cycle improves
SUMMARY
2012/13 SUMMARY 10
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MEASURE 2012/13 2010/11 Revenue $’000s 36,652 42,886
EBITDA $’000s (4,610) 2,230
NPAT $’000s (6,977) 791
EPS cents per share (cps) (10.6) 1.29
Net assets $’000s 5,690 10,407
Cash - operating activities $’000s
(1,348) 1,678
Closing inventory $’000s 6,879 10,187
Dividend paid cents per share (cps) 0.05 1.05
2012/13 SUMMARY 11
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ACTION Taken
2012/13 SUMMARY 12
Contingency plans in place were enacted immediately
Operating expenses reduced from November 2012 by $250K per month
Inventory reduced by $3.3m
Strong action on end of collection lines For
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BUSINESS STRATEGY
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• Build the brand to mean something to decision makers on bathroom fashion
• Product development that is trendy, fashionable and continuously innovative
• Diversity in our customers and market mix • Best distributor in our chosen markets – consistent,
reliable, low cost • Utilise strong China base for growth • Best people – knowledgeable, professional, positive • Be innovative in all areas of our business
KEY Strategic Plan
BUSINESS STRATEGY 15
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• Build the brand to mean something to decision makers on bathroom fashion
• Product development that is trendy, fashionable and continuously innovative
• Diversity in our customers and market mix • Best distributor in our chosen markets – consistent,
reliable, low cost • Utilise strong China base for growth • Best people – knowledgeable, professional, positive • Be innovative in all areas of our business
KEY Strategic Plan
BUSINESS STRATEGY 15
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The BRAND The BRAND • Brand refresh complete • New brand hierarchy
implemented expanding Marbletrend to a wider audience
• New packaging launched • Social media in full swing
designed to drive consumer demand
• Ongoing PR drive
BUSINESS STRATEGY 17
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The BRAND • Brand refresh complete • New brand hierarchy
implemented expanding Marbletrend to a wider audience
• New packaging launched • Social media in full swing
designed to drive consumer demand
• Ongoing PR drive
BUSINESS STRATEGY 17
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The BRAND: Social Media
BUSINESS STRATEGY 18
The BRAND: PR
BUSINESS STRATEGY 19
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The BRAND: PR
BUSINESS STRATEGY 19
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• Significant release of new products: – Showers – Baths – Vanities
• Driving fashion lifecycles • Continual enhancement and
development of our range every year
PRODUCTS
BUSINESS STRATEGY
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• Solidified and improved position at Bunnings across a number of categories
• Established ongoing business with a wider customer group
• Commenced demand creation strategies to builders and designers
CUSTOMERS
2012/13 SUMMARY
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• Solidified and improved position at Bunnings across a number of categories
• Established ongoing business with a wider customer group
• Commenced demand creation strategies to builders and designers
CUSTOMERS
2012/13 SUMMARY
• New warehouses in NSW and QLD
• Implementation of new forecasting and supply chain planning processes and software
• Inventory reduced and turning faster
DISTRIBUTION F
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• Established a number of new supplier relationships to add to strong existing suppliers: – Design focused – Increased automation – Higher quality materials
• Completed cross docking trial and rolling out
CHINA Sourcing
BUSINESS STRATEGY 24
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• Performance and development planning implemented
• Team size reduced but better positioned with mix of talent and experience
• New CFO and GM Sales & Marketing
PEOPLE
BUSINESS STRATEGY
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INNOVATION
• Management information improved with implementation of new reporting software
• Cloud based solutions implemented to ensure better IT performance and business continuity
• Implementation of new processes to ensure stronger governance and controls in inventory F
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• Grow customer base following establishment of new state of the art concrete plant (May 2013): – Reputation for efficient and reliable service – Product quality that exceeds customer
expectations – People with industry expertise who know what they
are talking about • Establish a profitable product mix • Continue to drive bulk garden supplies to construction
and civil markets • Use Port Melbourne location to add other ancillary and
accessory products for convenient delivery and pick up
Key STRATEGIC Plan
BUSINESS STRATEGY 28
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OUTLOOK
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MARKET Conditions ‘Choppy’ day to day market trending upwards over FY14
Improving new home building particularly in multi units
Renovations improving in line with house values and a lift in consumer confidence
Mining accommodation projects starting to improve
OUTLOOK 31
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First quarter daily sales improved significantly on FY13 Gross margins holding well New products growing as a percentage of sales Expenses under control Second quarter looking solid to forecast due to major roll out of new products to customers
FY 14 Update
OUTLOOK 32
Drive top line revenue
Implement brand new income streams
Grow our demand creation strategies
Maintain and improve gross margins through continued better product mix
Maintain cost base whilst growing and gain more efficiencies
Finalise the implementation of the supply chain improvement project
Our FOCUS
OUTLOOK 33
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Drive top line revenue
Implement brand new income streams
Grow our demand creation strategies
Maintain and improve gross margins through continued better product mix
Maintain cost base whilst growing and gain more efficiencies
Finalise the implementation of the supply chain improvement project
Our FOCUS
OUTLOOK 33
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• Marbletrend has appointed Stein International Pty Ltd as its Distributor in New Zealand
• Stein is a well established wholesaler and distributor of quality home improvement products in NZ dealing with all major customers
• The Marbletrend brand of showers and other products has been received well in the early stages
Announcement: NEW ZEALAND
OUTLOOK 34
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• Marbletrend has appointed Stein International Pty Ltd as its Distributor in New Zealand
• Stein is a well established wholesaler and distributor of quality home improvement products in NZ dealing with all major customers
• The Marbletrend brand of showers and other products has been received well in the early stages
Announcement: NEW ZEALAND
OUTLOOK 34
Marbletrend has been appointed as the exclusive Australia and New Zealand Distributor for the Noken range by globally respected Spanish manufacturer, Porcelanosa
Announcement:
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Noken by Porcelanosa
• Porcelanosa is a significant global brand that manufacture and wholesale a quality range of bathroomware
• The Noken collections of tapware, bathroom accessories and sanitaryware are of premium quality and based around exciting and innovative design
• Marbletrend will add value by carrying an Australian range in stock and be able to support the marketing, selling and promotion of this exciting range
• The Noken range by Porcelanosa opens up a number of new sales channels and opportunities for Marbletrend in Australia and New Zealand
NOKEN by Porcelanosa
OUTLOOK 36
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• MBD remains focused on building a sustainably profitable business
• The platform for growth is solid
• Thank you to our shareholders, the MBD Board and our Marbletrend and Citywide teams for their hard work in a challenging year
CONCLUSION
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THANK YOU!
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