Staff Changes Kurt van Niekerk Commercial Manager Tony Roberts RSM South Island Kerry Wright RSM BOP, Waik, Taranaki & Whanganui Rob Henderson RSM Akl, Well, Palmerston & HB
Creating A Better World For Our Customers Licensee Changes Nulook Motueka Nulook Golden Bay Kaikoura Glass Aztec Aluminium Franklin Aluminium Twin City Aluminium Nulook Enterprise
Creating A Better World For Our Customers Questions?
Creating A Better World For Our Customers ECONOMY - General Unemployment rate at 6.9% (December 2 Quarter – it was 7.3% in Sept 12 quarter) Australia is 5.3%, NZ is around 10 th best in OECD (34 countries) OCR rate unchanged at 2.5% (at this level since March 2011) Latest OCR announcement (Should remain unchanged through to end of year) House price inflation – gone from increasing to High, NZ dollar overvalued, Opposing forces - hiking UP the OCR pushes up dollar, further lowers inflation. Lowering DOWN the OCR or unchanged forever further stokes up the housing market and runaway inflation in the longer term. GDP at 2.5% for YE December 2012 New Zealand immigration numbers – net gain of 2500 people for March 2013 year. 86,000 arrivals dominated by UK (6100), China (5400), India (4900), Philipines (1900), Germany (1700) 83,500 departures, 35,500 of these were out to Australia compared t o 39,500 in March 2012 year March 2012 year saw a net loss of 3400 people Quote from 2012 presentation The population loss to Australia is on the cusp of ending (Tony Alexander – BNZ) – Looks like he might be right?
Creating A Better World For Our Customers HOUSING in NZ Days to sell (NZ average) – 31 days (Auck 29, Otago 29, Canterbury 24) House Sales Chart Consents follow house sales (Rodney Dickens)
Creating A Better World For Our Customers BUILDING STATISTICS Residential over the last six years. –2008 = 25,235 consents with 2387 being apartments –2009 = 16,710 consents with 2182 being apartments ( -34% ) –2010 = 14,971 consents with 1244 being apartments ( -10% ) –2011 = 15,025 consents with 1063 being apartments ( Eq ) –2012 = 14,124 consents with 1237 being apartments ( -6% ) –2013 = 17,432 consents with 1689 being apartments (+24% ) Non Residential over six years –2008 = $4,351 million value of consents –2009 = $4,587 million value of consents ( +5%) –2010 = $4,321 million value of consents ( -6% ) –2011 = $3,718 million value of consents ( -14% ) –2012 = $3,763 million value of consents ( +1% ) –2013 = $3,798 million value of consents ( +1% )
Creating A Better World For Our Customers The last 12 months residential detail Auckland511360361264408378458433432 3724734,882 Waikato1621521661241461511652001701421041831,865 Bay of Plenty905968619686841351117388951,046 Gisborne4152041071351521197 Hawkes Bay316232423431273850242620417 Taranaki35283325 30284639263633384 Manawatu- Wanganui5841473541434210747483136576 Wellington13679751481151051197910411592811,248 North Island 1,09 3832841747937884972 1,09 5 1,01 093380697711,127 Tasman271619212625243336242119291 Nelson281035292521 2221182331284 Marlborough12141126131412171812721177 West Coast (4) 17101216261791695614157 Canterbury2812823512963713943963334132813783514,127 Otago795382124679262107124796367999 Southland (5) 22132118136624162728813269 South Island (4,5) 4663985315305416295485446484475065166,304 Area outside region (6) 00000000001001 New Zealand (4,5,5) 1,55 9 1,23 0 1,37 2 1,27 7 1,47 8 1,51 3 1,52 0 1,63 9 1,65 8 1,38 1 1,31 2 1,49 317,432
Creating A Better World For Our Customers CHRISTCHURCH Momentum really starting in Residential Since 4 September 2010, almost 3,900 earthquake-related consents have been identified in Canterbury, totalling $888 million. This includes 714 new dwellings, of which 150 were relocatable units. (also incl alterations, etc) Priority is about ensuring the timely repair and rebuilding of residential areas. Managing the residential red zone process and clearing these areas. It also involves ensuring adequate land supply, and housing. Real progress in the suburbs. CERA works closely with insurers and EQC on the progress of claim settlements and resolving any remaining blockages. Encouraging private sector innovation like the Firth-designed Rib-Raft foundation systems that can be used in TC3 areas. Finishing the demolitions in the Christchurch Central Rebuild Zone and beginning the construction phase is well underway, hope to see the cordon gone by the middle of this year.
Creating A Better World For Our Customers NZ Aluminium Smelter Rio set up Pacific Aluminium – 1 Bauxite plant, 5 smelters (Australia / NZ) Divesting as a standalone entity (aluminium has hurt Rio Tinto, propped up by Iron Ore) NALCO in open dialogue over last 2 years Protected our position testing supply from outside NZ Significant increases in premiums on aluminium Market is in contango (forward or future trades above current spot price) Deutsche Bank say Chinese producers will be significantly cash negative at current prices. Lack of demand strength from global marketplace Southland – 800 workers = 1.5% of workforce (Southland unemployment at just 4.6%)
Creating A Better World For Our Customers NALCO YEAR END MARCH 2013 10% up on YE March 2012 in overall sales / volume Building products up 15% Industrial up 8% Export down 7% (influenced by Aussie downturn / alternate supply / French) NALCO Hamilton have continuously strived to contain cost, but small orders and pack sizes painful Other NALCO costs –S&As up 7% –Overheads down 6% (also down 5% previous year) Success in being paid - average 2 day improvement over the full 2012-13 year (DSO)
Creating A Better World For Our Customers Health and Safety Some history –2008 = 7 LTI, 23 MTI incidents with a FR of 52 –2009 = 3 LTI, 22 MTI incidents with a FR of 49 –2010 = 3 LTI, 19 MTI incidents with a FR of 47 –2011 =1 LTI, 11 MTI incidents with a FR of 25 –2012 = 1 LTI, 10 MTI incidents with FR of 26
Creating A Better World For Our Customers SUCCESSES Shift to new Highbrook site All Seasons suite take up (15% of sales in March) Hamilton cost containment performance under difficult market conditions Seamless Upgrade of SAP computer system Zinc Smelter Industrial value add orders –(Nystar Tasmania, Canada) But…..Not so good Stellar Door flat panel designs (TGV) Some All Seasons shapes Clarity on our service level ability
Creating A Better World For Our Customers GOING FORWARD Be better with service level clarity / communication / *performance (*particularly South Island). Grow Licensee market share off the back of: –Existing Nulook capability (quality of representation, not the quantity) –Work to develop skills and professionalism through our network –Build awareness of our products and capability within the Industry by combinations of both NALCO and Licensee activity / focus Grow share in volume build via both Bradnams and willing Nulook Licensees Building Products Systems focus: –Front end systems –Focused product development with end to end delivery Building on NALCO brand awareness –Industrial –Master Builders Commercial sponser
Creating A Better World For Our Customers GOING FORWARD (cont) Value add Industrial opportunities –Patents in progress in key international markets relating to smelter opportunities –Second CNC router about to be commissioned at Highbrook Hamilton building extensions for future press, paintline and warehouse development. New Bradnams factory in Christchurch – end of July
Creating A Better World For Our Customers Questions?
Creating A Better World For Our Customers Nulooks Vision for the Future Nulook to become NZs leading Licensee brand! –Measured by Profitability (Licensee level) Market Share (National) Customer rating (Builders & Architects surveys) and DIFOT
Creating A Better World For Our Customers Nulook Values –Values shape our actions Quality Reliability Innovation Trust
Creating A Better World For Our Customers Nulook Strategic Goals 1.Unite Nulook under a common brand 2.Increase Nulook networks capability 3.Improve Licensee market presentation 4.Improve Licensee professionalism 5.Increase Licensee profitability 6.Grow Nulook market share
Creating A Better World For Our Customers Unite Nulook Interdependence is needed to build a strong brand. We all have an important role to play Balance giving up personal freedom v achieving the vision! Quality of our commitment & discipline (not a rod) We rely on one another, Strength in unity! What new opportunities might this bring?
Creating A Better World For Our Customers Unite Nulook Unite Nulook under a common brand Over 85% of Nulook Licensees have either –Changed –Agreed to change
Creating A Better World For Our Customers Licensee Capability Development Learning & development, offered in Auckland & Christchurch –How we make Windows and Doors- WeatherTight –Management & Production Planning 1 –Sales Fundamentals and Advanced Sales –Human Resources
Creating A Better World For Our Customers Licensee Capability Development New Courses to be added –Commercial, –Financial Management New locations to be added –Dunedin, Nelson, Palmerston North –Subject to attendance Confirmations! –Minimum numbers required 6
Creating A Better World For Our Customers Commercial Training Standardising your Project Management Process Identifying Opportunities within Projects New Mill Run Discounts Seismic Movement Wind loads on Commercial Projects Use of sealants on Commercial projects
Creating A Better World For Our Customers Improve Nulooks Market Presentation Improve Nulooks visual identity New Nulook Branding –This is not a smorgasbord Increase the number of Nulook showroom displays Improve the quality of Nulook Showrooms Tighter brand controls, and controls on IP use
Creating A Better World For Our Customers Improve Licensee Professionalism Increased Training Available from NALCO Introduce business systems for the network to use Help systemize your business, making it less reliant on individuals. Encourage Account and Business plans
Creating A Better World For Our Customers Increase Licensee Profitability Regionals Sales Managers assistance –Help growing your business –Identifying Opportunities locally (BCI) –Providing/Gaining Specification with Architects –Helping develop Licensee Account/Business plans –Nulook Promotional Activity
Creating A Better World For Our Customers Grow Nulook Market Share Working with Licensees to grow their Business Capitalise on Opportunities that exist in the market
Creating A Better World For Our Customers Nulook Promotion Plans
Creating A Better World For Our Customers Nulook Promotion Plans Builders Promotions –8 week promotion –June & July –October & November –Prize draws, likely to be Dewalt prizes Architects Promotion –August & September –February & March
Creating A Better World For Our Customers Nulook Promotion Plans Objectives are: – Promote AllSeasons suite – Build subscription for Nulook direct emails – Develop attraction and appreciation to Nulook products – Reward those buying Nulook (encourage loyalty) Notification – Direct mail & Direct Email Campaigns – Collateral for Licensees to give out
Creating A Better World For Our Customers Business Indicators
Creating A Better World For Our Customers Consent Trends
Creating A Better World For Our Customers Consent Trends