The Laminex Group TLG Investor Presentation Sept 2011
Australia’s Leading decorative surfaces business • TLG is a decorative products business with a balanced portfolio • TLG has strong competitive positions in key markets • Growing market share • Taking action to support results in softer market conditions • Leading people focussed on results
TLG has distinct competitive advantages 1 • TLG has the largest footprint in both Australia and NZ NETWORK AND • The network provides a high service level with the largest decorative REACH surface sales force 2 • TLG has the widest range of the most fashionable decorative surface PRODUCT RANGE products AND BRANDS • The most recognisable range of decorative product brands 3 • TLG is vertically integrated (HPL, LPL, MDF, PB, Componentry); including VERTICAL shares in sawmills and resin plants INTEGRATION 4 • Decentralised and responsive business model with decisions made at customer level - majority small business customers DECENTRALISED BUSINESS MODEL • Strong and performing sales force • Supported by focused head office functions marketing/HR/Finance
TLG has a diverse business that generates revenue from decorative surfaces to the building market Revenue by product 2010/11 Revenue by Major Region 2010/11 Export Export Componentry 1% 5% 7% 14% 15% 1% SA NZ HPL 19% 19% Other 12% NSW/ACT Rawboard 23% VIC/TAS QLD Decorated Board WA 18% 18% 48% Revenue by customer 2010/11 Revenue by Segment 2010/11 Other 1% 5% 5% 2% 7% 30% Others 7% 31% 44% Alterations & Additions Kitchen & Joiners New Homes Bthrm Mfg 10% Postformers Specialist 11% Office/Comm Commercial Fur Mfg 34% 13% Source: Management Estimate
TLG’s manufactured products access the market through Australia’s largest ‘Decorative surfaces branch network’ Gympie MDF/LPM Brisbane Perth Sydney Dardanup PB & LPM Adelaide LPM Melbourne Hamilton Cheltenham HPL Taupo TLG Branch TLG Distribution Centre TLG Plant O’Briens Dongwha
TLG has a strong portfolio of highly recognisable brands Common brands TLG TLG Australia TLG New Zealand Australia & NZ Shared brands leverage ‘Branded House’ strategy ‘House of Brands’ strategy marketing spend
TLG drives demand for its products through consumer/trade marketing, strong relationships with specifiers and expansive channel merchandising
A strong track record … and pipeline of innovation 180fx - HPL Silk Finish - LPM Alu Doors - Compact New Finishes – Componentry HPL/LPM • A 25% increase in new products proposed for launch in FY12 • Plans in place to double new product revenue in FY13
TLG’s initiatives have taken market share resulting in a ‘better than market performance’ TLG Sales and Value of building commencements TLG Sales Value of Building Commencements Mar-2008 Jun-2008 Sep-2008 Dec-2008 Mar-2009 Jun-2009 Sep-2009 Dec-2009 Mar-2010 Jun-2010 Sep-2010 Dec-2010 Mar-2011 Jun-2011 Sep-2011 Source: BiS Shrapnel
TLG focused on its core strategic themes during tougher market conditions Strategic Themes Actions taken Outcomes • Reduction in labour costs “TLG is on the front foot” • Acting on compressible costs without with cost reductions as Cost sacrificing core business activities economy slows” “New products providing • Accelerating New Product Development Product growth and positioning the initiatives business for the long- Leadership • Strong pipeline of opportunities term“ • New pricing structure to promote loyalty “Using customer intimacy Customer • Leading product and service offers initiatives to drive sales • Field sales force profit programs intimacy outcomes and improve • Strong specification and conversion teams customer loyalty”
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