The Laminex Group TLG Investor Presentation Sept 2011 Australias - - PowerPoint PPT Presentation

TLG Investor Presentation

Sept 2011

The Laminex Group

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

NETWORK AND REACH

• TLG has the largest footprint in both Australia and NZ
• The network provides a high service level with the largest decorative

surface sales force

1

DECENTRALISED BUSINESS MODEL

• Decentralised and responsive business model with decisions made at

customer level - majority small business customers

• Strong and performing sales force
• Supported by focused head office functions marketing/HR/Finance

4

• TLG has the widest range of the most fashionable decorative surface

products

• The most recognisable range of decorative product brands

PRODUCT RANGE AND BRANDS

2

VERTICAL INTEGRATION

• TLG is vertically integrated (HPL, LPL, MDF, PB, Componentry); including

shares in sawmills and resin plants

3

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 Revenue by Segment 2010/11 Revenue by customer 2010/11 19% 12% 5% 1% 15% 48% 31% 30% 5% 34% 19% 23% 18% 14% 18% 7% 1% HPL Rawboard Decorated Board Other Componentry Export Export SA NSW/ACT QLD VIC/TAS WA NZ Alterations & Additions Commercial New Homes Other

Source: Management Estimate

7% 7% 44% 13% 11% 5% 10% 2% 1% Kitchen & Bthrm Mfg Specialist Office/Comm Fur Mfg Postformers Joiners Others

TLG’s manufactured products access the market through Australia’s largest ‘Decorative surfaces branch network’

Sydney Brisbane Adelaide Perth TLG Branch TLG Distribution Centre Melbourne TLG Plant

Gympie MDF/LPM Cheltenham HPL Dardanup PB & LPM LPM Dongwha Taupo Hamilton O’Briens

Common brands TLG Australia & NZ TLG Australia TLG New Zealand TLG has a strong portfolio of highly recognisable brands

‘Branded House’ strategy ‘House of Brands’ strategy Shared brands leverage 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 - Componentry Compact New Finishes – HPL/LPM

• A 25% increase in new products proposed for launch in FY12
• Plans in place to double new product revenue in FY13

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

TLG’s initiatives have taken market share resulting in a ‘better than market performance’

TLG Sales and Value of building commencements

Value of Building Commencements TLG Sales

Source: BiS Shrapnel

TLG focused on its core strategic themes during tougher market conditions

Product Leadership

• Accelerating

New Product Development initiatives

• Strong pipeline of opportunities

Customer intimacy

• New pricing structure to promote loyalty
• Leading product and service offers
• Field sales force profit programs
• Strong specification and conversion teams

Cost

• Reduction in labour costs
• Acting
• n

compressible costs without sacrificing core business activities “TLG is on the front foot” with cost reductions as economy slows” “New products providing growth and positioning the business for the long- term“ “Using customer intimacy initiatives to drive sales

• utcomes

and improve customer loyalty”

Strategic Themes Outcomes Actions taken