A View from the Market Front Mark Lohan Trading Director Brooks - PowerPoint PPT Presentation

“A View from the Market Front” Mark Lohan Trading Director Brooks September 2011

BHT Group Companies “Serving the Irish Market”

BHT Group Branch Locations

Trade Side of the Business Brooks operates through a network of 13 branches nationally open to the Trade and Public  Timber  Building Materials Brooks Branch Locator  Insulation  Flooring  Roofing Material  Landscaping

Trade Side of the Business Heat Merchants operates through a network of 43 branches nationally open to the Trade and Public  Heating  Plumbing  Insulation  Spare Parts  Renewable  Industrial Pipe  Electrical

BHT Group Profile Customer & Market Profile 2006/2007 Construction Industry Large Contractors Small Electricians Builders 2011/2012 Construction Industry Tilers Plumbers Retail Insulation Customers Specialists * RMI : Repair, Maintenance, Improvement

BHT Group • Excess of 10,000 Trading Account Trading Accounts Customers • Excess of 150,000 Transactions per Transactions month Cash Sale • Excess of 75,000 Cash Transactions Transactions (including per month Retail) • Excess of 20,000 Products supplied Products per month (250,000 units)

BHT Group Given BHT’s National Branch Network Service offered Product Range & Offering Customer Profile Customer Footfall Our Experience is representative of the Irish Repair, Maintenance, Improvement (RMI) & Retrofit Market

Retrofit Customers • Who are our Retrofit Customers? • What do they Purchase per transaction / per month? • What drives their purchasing behaviour?

Customers Customer A – Retrofit Retail Customer 1. Average Customer Spend per Transaction € 600 3. Typical Purchases a) Attic Insulation b) Frost Guards c) Pipe Insulation d) Loft Ladders 4. Growing in Importance 5. Spend is Prevention Driven 6. Spend is Not Grant Driven

Customers Customer B – Small Builder & Small Plumber 1. Average Customer spend per month € 2,500 2. Typical Purchases a) Energy Efficiency Boilers b) Energy Efficiency Controls c) Solar Panels d) Energy Efficiency Lighting e) Attic & Wall Insulation 3. Purchases assisted by Grant 4. Cost of Replacement vs. Cost of Repair

Customers Customer C – Insulation and Energy Efficiency Specialists 1. Specialist Retrofit Contractors 2. Typical Purchases a) Fibreglass Attic Insulation b) Terminal Liner Insulated Plaster Slabs c) External Wall Insulation d) Cavity Wall Insulation 3. Typical Retrofit customer being actively targeted 4. Increase usage of direct and indirect Marketing

Market Summary The overall Market has moved to primarily an RMI Market Investment in Insulation has been the biggest driver to date The Small Builder & Plumber Customers are central to the Retrofit Market moving forward The Retail Customer is being actively encouraged by direct marketing campaigns by specialist contractors to be more energy efficient Big Ticket Retrofit purchases have declined, as evidenced in Solar sales reduction and “sluggish” External Insulation market

Retrofit Investment

What are BHT doing to Support Retrofit Solar and Water Heating

What are BHT doing to Support Retrofit Insulation

What are BHT doing to Support Retrofit Underfloor Heating

What are BHT doing to Support Retrofit We continually train and re-train our sales force team Up-Skilling Our Sales Force Team in Energy Efficiency & Retrofitting Products  Increasing our Staff Knowledge and Awareness of the Government  Grant\Aid available to End Users

What are BHT doing to Support Retrofit We educate and empower our Customers through Open Evenings and latest Software Packages Retrofit Open Evenings ISO Learn to our Trade Customers mark.lohan@bhtgroup.ie A Computer Based Package BHT Breakfast Mornings and Open demonstrating the many Retrofit Evenings to Trade and General Public Offerings available and educating the End demonstrating the many Energy User on the Options available Efficiency Products on Offer Insulation  High Energy Efficient Boilers  Temperature Controls 

Conclusion Future Investment  Grant aided schemes and access to finance need to be further developed in order to simplify the process of attaining funding for the end user The Energy Efficiency & Retrofit Market is Growing  Evidence is there that customers sees the benefit in Investing in Energy efficiency product and services BHT are continuing to invest  Offering the Customer the best advice as well as selling the features and benefits of the many products available

Thank You

BHT Group, Moydrum Road Athlone, Co. Westmeath T: +353 (0)90 642 4000 F: +353 (0)90 642 4067