Building Solutions Europe How to be successful in a flat market - PowerPoint PPT Presentation

Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann EVP, Sales & Marketing, Building Solutions – Europe 11 Dec. 2013

Presentation outline • Background • Business model innovation • Product innovation • Partnerships • In summary Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 2

The European building market suffers since several years… I ndex ( base year 2 0 1 0 = 1 0 0 ) Source: Eurostat Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 3

… and remains rather flat also in the shorter term Source: Euroconstruct 11/ 2013 Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 4

Our strategic framework Our vision Our m ission Our com m itm ent • Sustainability Throughout the Partnering with • Efficiency world, our professionals to • Comfort Vision and solutions enrich create better human • Health people’s way of life environments mission • Safety Where we aim to be in 2016 Leading infrastructure Brand standard for PEX Leading player in and extrusion systems in commercial plumbing and indoor technology supplier in and residential in North climate in Europe selected markets Strategy America Our strategic direction Our strategic initiatives Simply more Brand Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 5

Business model innovation

Step 1: Expanding the value chain to access broader markets Distribution business Project business Developer Installer / / CSP / Owner / Distributor Mechanical General Investor Contractor Contractor Specifier / Engineer / Architect Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 7

Step 2: Segment approach Project business segments Residential Commercial Industrial Agriculture Building types Housing Owners Logistic Farmers companies companies Real estate Biogas Customer Contractors Suppliers for companies types Facility industrial floors Prefab house management Suppliers for manufacturers Retailers agricultural Precast element equipment Energy suppliers consultants Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 8

Business model success story Retail stores and logistics • One Uponor approach across seven countries, international consistency and credibility as differentiator • 39 projects realised, 58 currently in the pipeline • Network with key stakeholders established • Direct relationships with: - the investor - investors architect and engineer - investors preferred main contractor - local consultants and installers • Providing support at all stages • “Solution pricing” protects margin and helps dilute direct product price comparison Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 9

Our opportunity Targets • Influencing the entire value chain at the earliest possible stage • Evolution of project business to meet increased complexity and customer expectations W hat w e achieved in key m arkets • Visibility and recognition gained among the new target groups • Sales and marketing expertise for competitive arenas established • Organisational structure to address project business specific needs • Service organisation with own resources or via partnerships in place Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 10

Product innovation

Recent innovations at Uponor 2013 2003 2003 2007 2007 2011 2009 SACP First press First UFH* First press First self- RTM First Technology, fitting renovation fitting with attaching Technology modular the first with test system colour UFH* riser fitting seamless safety Minitec coding and system system for aluminium pressing Klett 63–110 mm composite indication pipe 2003 2005 2007 2009 2011 2013 First UFH* First First First controls Evolution of First wall modular system surface- with the first and ceiling plastic for dry close TABS Dynamic all-plastic renovation manifold stud walls system Energy fitting system Siccus SW Contec ON Management system, Renovis Q&E 2 0 0 3 2 0 1 3 * ) UFH = Underfloor heating Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 12

Product innovation success story Southern Europe Central Europe Northern I NTRODUCTI ON Europe DEVELOPMENT Eastern MATURI TY Europe GROW TH DECLI NE SALES VOLYME TI ME The current MLCP technology, which started its success story in the early 1990s, is reaching the final phase of its life cycle in our major markets Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 13

Why improve a leading product? “If somebody takes one of the most successful pipes off the market, he must be crazy – or really good.” Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 14

Anticipating customer needs Main drivers for the installer 1. Safety and reliability 2. Speed and easy installation 3. Sales & technical support Safety and reliability Safe systems that support a correct and reliable installation and avoid corrosion I nstallation design Systems that better adapt to changes on the installation site I nstallation cost and tim e Materials which reduce the number of fittings and help speed up the installation Visual appearance Systems that support the aesthetics of visible installations Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 15

The new SACP Technology SACP Technology = S eamless A luminium C omposite P ipe • A new technology in which the aluminium is seamlessly extruded • SACP Technology is different than current multilayer technologies • Thanks to this technology, it is an even more reliable pipe, and its installations are easier, simpler and faster The first seamless multilayer composite pipe Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 16

Customer benefits • Material and time savings due to more flexibility and better handling • Higher safety and reliability • Better visual appearance of the installation and less brackets needed • Totally compatible with current Uponor fitting systems Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 17

The versatility of a new product • In the Nordic markets, on-wall installations are a standard, especially in renovation • Due to the better visual appearance, this market is currently dominated by metal pipes • By leaving away the outer plastic layer, the SACP Technology allows us to produce a composite pipe with a metallic look – Com bining the high flexibility of an MLCP w ith the clean look of a m etal pipe Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 18

Partnerships

Partnership is more than installed products Q&E m anifolds and Uponor PEX pipes m odular accessories Lightweight, flexible and For an efficient installation durable design PPSU Q&E fittings Great variety for a full Q&E expander tool Q&E rings plastic installation Significantly faster The best expansion tool in the trade time to tightness For a fast and easy installation, a good system requires a good tool Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 20

Cooperation with Milwaukee • European Frame Purchase and Supply Agreement between Uponor and Milwaukee Electric Tool Corporation • Inspired by Uponor’s innovation and constructed with legendary Milwaukee durability • Co-branded with both Milwaukee and Uponor logos • Jointly co-marketed, distributed and sold by both Milwaukee and Uponor … gets a high-quality tool supported by the w ell-know n brand of Milw aukee … gets access to the plum bing m arket via Uponor’s distribution channels and installer relationships Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 21

Other successful partnerships Uponor – Stiebel Eltron • Joint product and system development to integrate individual offering to complete solutions (example heat pump module) • Joint marketing efforts Uponor KOTI • Services for single family homes (new build and renovation): high quality plumbing and indoor climate systems installed by professionals, full service with one contact • 235 network installers • 10,000 end user contacts • Web service tool for end users and network installers  3,000 registered customers • Partners: Oilon Ltd, NIBE Ltd, Oras Ltd, Ido Ltd, Enervent Ltd, Santander Consumer Finance Finland Ltd Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 22

In summary I nnovation Business m odel Product Partnerships Through innovation, w e create superior custom er value and m ake a difference The w ay to be successful in a flat m arket Building Solutions – Europe – How to be successful in a flat market Heiko Folgmann 23