Nobia Ab · OMXSTO:NOBI
Nobia Ab — Investor Day (September 2004)
32 slides from Nobia Ab's investor day presentation, Sep 2, 2004
Slide 1: Category management in the project market
“Category management in the project market” Presentation by Jorma Lehtovuori Business Unit Manager Novart 2 September 2004 1 September 2004
Slide 2: Contents
Contents Introduction of Novart Project market in Finland Key customer service process 2 September 2004
Slide 3: Introduction
Introduction 3 September 2004
Slide 4: Novart in short
Novart in short Sales approx. EUR 70 m Number of employees approx. 480 Market leader in Finland Total market share 29% Production units in Forssa and Nastola Member of the Nobia Group since 1998 Forssa 15,000 m2 Nastola 19,000 m2 Helsinki 4 September 2004
Slide 5: Business areas
Business areas Novart Project Sales Sales directly to construction companies Market area: Finland Retail Sales Sales to end customers via franchise dealers Market area: Finland Export Sales to end customers via kitchen specialists Main market: Russia 5 September 2004
Slide 6: Sales 2003 – breakdown by business areas
Sales 2003 – breakdown by business areas Total sales EUR 69 m Retail sales Project sales EUR 41 m EUR 26 m Export EUR 2 m 6 September 2004
Slide 7: Business areas – Retail
Business areas – Retail We are operate with 3 kitchen brands through a franchised dealer network with 25 outlets with 36 outlets with 32 outlets In addition to these brand specific outlets we have 4 “Kitchen World” outlets, where all our brands are displayed 7 September 2004
Slide 8: Business areas – Projects
Business areas – Projects Our brand in project sales is For projects with special prestige, the customer can choose – products and brand 8 September 2004
Slide 9: Business areas – Export
Business areas – Export Exports operates with one brand through the dealer network with 12 outlets Business areas – same brands for all areas We have the same bathroom and sliding door cabinet brands for all business areas 9 September 2004
Slide 10: Project market in Finland
Project market in Finland 10 September 2004
Slide 11: Breakdown of the fittings market in Finland 2003
Breakdown of the fittings market in Finland 2003 Total market 1,520,000 cabinets Retail sales 60% 40% Project sale 11 September 2004
Slide 12: Project market in Finland (new buildings and renovation), 94-2003
Project market in Finland (new buildings and renovation), 1994-2003 36000 33000 30000 27000 24000 21000 18000 15000 12000 9000 6000 3000 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Number of dwellings 12 September 2004
Slide 13: Finnish project market – Strongly driven by new buildings
Finnish project market – Strongly driven by new buildings Total market 616,000 cabinets New buildings 67% 33% Renovation 13 September 2004
Slide 14: Centralised market
Centralised market 14 September 2004
Slide 15: Project market – Geographic centralisation
Project market – Geographic centralisation 4% 7% 4% * The Helsinki area, which is included 23% in South Finland, is 34% 45%* 15 September 2004
Slide 16: Centralisation of customers and suppliers
Centralisation of customers and suppliers Biggest construction companies Biggest suppliers – YIT Group – Novart – Skanska, Finland – ISKU-Keittiöt – NCC, Finland – Topikalustaja – Lemminkäinen Group – Hartela Group – Lujatalo Group 70% 75% 30% 25% Other construction companies Other suppliers - numbe
Slide 17: Conclusions based on centralised market
Conclusions based on centralised market Customers (construction companies) don’t want too many suppliers for kitchen interiors Customers require that the partnership covers the whole country despite low demand in eastern and northern Finland Due to high volume demand from major construction co
Slide 18: Key customer service process
Key customer service process 18 September 2004
Slide 19: The Finnish way of dealing with project sales
The Finnish way of dealing with project sales Manufacturers have their own organization to deal with construction companies Dealer network has no role in this supply chain Installation service is a vitally important part in this business All flats are ready furnished with interior solutions
Slide 20: Key customer service process in project sales
Key customer service process in project sales 2 3 Pre-planning Home buyer’s service modifications Service 4 Centers 1 Annual Construction agreement company Technical planning Process development Installation 5 7 service 6 20 September 2004
Slide 21: Key customer service process (1/7) – Annual agreement
Key customer service process (1/7) – Annual agreement The key customer service process is based on annual agreements with the most important construction companies covering the main part of their kitchen fittings requirements – This gives more opportunities to understand customers’ needs and devel
Slide 22: Key customer service process (2/7) – Pre-planning service
Key customer service process (2/7) – Pre-planning service Construction companies’ architects only provid basic kitchen layouts and Novart provides detailed plans for kitchen, bathroom and other fittings Advantages for construction company: – Resources and cost savings – More accurate and profess
Slide 23: Key customer service process (3/7) – Home buyers’ modifications
Key customer service process (3/7) – Home buyers’ modifications Home buyer Request for Offer modification Construction company Request for Offer modification Novart 23 September 2004
Slide 24: Structural change in the project market in Finland
Structural change in the project market in Finland New buildings, year 1998 New buildings, year 2003 Rented flats Rented flats 59% 29% 41% 71% Tenant-owned flats Tenant-owned flats 24 September 2004
Slide 25: Key customer service process (4/7) – Service centers
Key customer service process (4/7) – Service centers There is an increasing demand for an individual kitchen modification service for home buyers. To be meet challenge of this demand we have established two “full service centers” Service at the centers also includes: – Pre-planning for construct
Slide 26: Key customer service process (4/7) – Service centers
Key customer service process (4/7) – Service centers Home buyer Offer Modifications Construction company Offer Service centers 26 September 2004
Slide 27: Key customer service process (5/7) – Technical planning
Key customer service process (5/7) – Technical planning One part of our full service concept is that before we start production at the factory we visit the site to ensure that rooms’ layouts are in line with the original plans and if needed we make required changes Advantages for the constructio
Slide 28: Key customer service process (6/7) – Installation service
Key customer service process (6/7) – Installation service Installation service is included in 99% of our contracts Advantages for construction company: – Installation service covers the whole of Finland – One partner responsible for whole delivery chain – Ensures total quality of delivery Adva
Slide 29: Key customer service process (7/7) – Process development
Key customer service process (7/7) – Process development We have established development groups with our customers whose aim is to evaluate the process and finding opportunities to improve effectiveness Example: How to minimize cabinet damage caused by circumstances on the construction site? 29
Slide 30: Key customer service process in project sales
Key customer service process in project sales 2 3 Pre-planning Home buyer’s service modifications Service 4 Centers 1 Annual Construction agreement company Technical planning Process development Installation 5 7 service 6 30 September 2004
Slide 31: Summary
Summary Based on the number of new buildings and renovated dwellings, the project market has been quite steady in recent years Centralised structure of customers and suppliers is characteristic of this business To be successful in this business it is not enough to operate only as a supplier of
Slide 32: Thank you for your attention
Thank you for your attention 32 September 2004