Analysts presentation Photokina 2006

Analysts presentation
Photokina 2006
Cologne, 29 September 2006
Welcome!
Agenda
0830
Introduction – Gareth Rhys Williams
Photographic Division – Francesco Bernardi
0930
Transfer to Photokina
•
•
•
•
3
Learn a little about the industry
Visit Vitec stands
Lunch at Lindbergh restaurant (between Halls 6 and 9)
Free time to visit our competitors’ stands
1645
Transfer to airport – meet at Manfrotto stand (Hall 6)
1825
LH4798 departs (arrives Heathrow T2 at 1855)
What is the next number in the
sequence?
9.1
14.8
9.0
4
11.7
3.4
26.1
10.9
?
Photographic division
“Stable growth”
Francesco Bernardi
Agenda
‹ What we offer
‹ Which brand sells what
‹ How we are organised
‹ How we will grow
‹ Recent achievements
‹ What you will see at Photokina
6
Photographic Division, mission
To deliver “must have products” and “outstanding
support” to the discerning user who seeks state of
the art professional products and solutions:
‹in camera and lighting accessories
‹in aluminium structures and staging products
7
PRODUCTS
8
&
SYSTEMS
• 50% to professionals
50% to keen amateurs
• 100% to business or
professional users
• via dealers & retailers
• direct or via rental
Imaging Accessories
9
Imaging Distribution
Products are sold through internal and external
distributors to retailers
INDIVIDUAL
90%
CUSTOMER
B2B / STUDIO
10%
DEALERS RETAILERS
COUNTRY
DISTRIBUTORS
IMAGING ACCESSORIES
10
Imaging Distribution
Products are sold through internal and external
distributors to retailers
INDIVIDUAL
90%
CUSTOMER
B2B / STUDIO
10%
DEALERS RETAILERS
COUNTRY
DISTRIBUTORS
France, Germany, Italy, Japan, UK, US
IMAGING ACCESSORIES
11
Imaging Distribution
Internal, plus premium 3rd party products
Own Products (70%)
12
3rd PARTY (30%)
Staging systems
13
Professional Camera and Lighting Supports
14
Manfrotto – photo camera supports
15
Manfrotto – products in use
HELMUT NEWTON
(in a self-portrait for a
Rolex advertising
campaign)
16
Manfrotto products in use
NEW YORK
independent documentary
film maker on a shoot
17
Manfrotto new products
519 - the first
fluid head with
interchangeable
and adjustable
counterbalance
18
Professional Lighting support
19
Manfrotto lighting products in use
ITALY
commercial
photography studio
20
Heavy duty lighting stands
‘Grip’
21
Avenger products in use
22
STAR WARS
The Avenger range of
lighting grip equipment on
set
‘The professionals choice’
23
Gitzo camera support
24
Gitzo products
in use
CAPITAL MAGAZINE
Interview with Dustin Hoffman
25
Professional camera / accessory bags
26
Kata protective products
27
Kata Digital Collection
28
Our route to the wildlife enthusiast
29
NG Expedition
30
NG Explorer Bags
31
NG - advertising
32
Standard Lighting Trusses
33
Litec – Truss System
34
Litec – Truss System in use
35
Litec – Truss System in use
Palazzo Ducale - Venice
36
37
IFF – Studio Suspension System
38
STUDIO BABELSBERG
Berlin - Germany
Trusses and Suspension in use
39
SANTA CECILIA
AUDITORIUM - Rome
How we are organised
Photographic Division Structure
(from July 2005)
VITEC GROUP
Photographic Division
41
IMAGING
ACCESSORIES
IMAGING
DISTRIBUTION
STAGING
SYSTEMS
Business Unit
Business Unit
Business Unit
How we will grow
Imaging accessories and distribution
The trends
-
Increasing power of retailers
But they need to make money on their accessories
-
More competition from low-cost countries
Now with an improved quality …
+
Increasing Global affluence
Increasing spending on leisure pursuits / travel
+ Asian markets growth
Increasing importance for distribution of China and other emerging countries
+
Internet is back
Growth of the web community and of web-based transactions
+ + Digital revolution has made photography mainstream
Digital SLRs growing rapidly (5+m in 2007) - these customers are ‘our’ target
=
Importance of the Consumer Electronic channel
New opportunities with the C.E. channel as cameras are “going digital”
43
Imaging
The opportunity
‹ Distribution is fragmented
‹ Producers are small, fragmented, with low R&D
investments
‹ Good distribution can pull through sales and protect
producer margins
NO PLAYER USING SCALE IN BOTH
DEVELOPING / PRODUCING INNOVATIVE NEW
PRODUCTS AND IN GETTING THEM TO MARKET
44
Staging systems
The trends
+ Today the truss is an important element to any indoor/outdoor
application as it ensures quick and convenient set up.
+ Customers ask for modular and user friendly products;
+ Customers ask for one single source of supply, able to guarantee
reliable solutions to their need
+ More stringent safety regulation will be introduced gradually
worldwide and will force customers to refurbish their equipment
= Electronic and dedicated software development will be needed to
integrate hardware
= Design is becoming an important element for success
45
Staging systems
The opportunity
‹ No player is currently offering worldwide a complete
range of modular, integrated supports structures for
the outdoor events, theatrical, architectural and
broadcast markets
‹ No player is currently offering solutions from the big
event to the smaller standard application
NO GLOBAL PLAYER OFFERING INTEGRATED
SOLUTION ON A WORLWIDE BASES PER
MARKET AND PER TYPE OF APPLICATION
46
Recent Achievements
Key achievements
Structure reorganised to drive growth…
‹ Divisional model changed from “company” to “business area”
Imaging accessories
Manfrotto, Gitzo, Kata, National Geographic
run as one unit
Staging Systems
IFF, Litec now integrated under the same
roof in Mogliano
Imaging Distribution
from Manfrotto Italy, Manfrotto France etc to
Bogen Imaging Worldwide
‹ Strengthened sales organisation for Imaging products
‹ Regional sales managers, shared with Kata: EMEA/India and Asia
‹ Increased sales and focus
‹ Started in 2005 a CSR programme involving the employees
‹ 8 project-financed, one in cooperation with NGS
48
Key achievements
… and reduce costs
‹ Gitzo operations in France now completely transferred to Italy
‹Improved operational efficiency and effectiveness
‹Cost saving of Euro 500K per annum
‹ Movex rolled out in BI Italy, Japan, UK and Litec
‹All units interlinked on one system
‹ Further improvements in operations - reduced costs and improved
service
‹Plan accepted by employees and unions
‹Further centralisation of Italian operations includes 2 plants, approx
100 people to be relocated to the Feltre or other plants
‹ Started production in China and Slovakia
‹40,000 tripods delivered in 2005, >100,000 in 2006
‹Costs in line with locals
‹No significant quality issues
49
Key achievements
Distribution strengthened
‹ Staging Systems strengthened market position in Europe
‹ Europe is 60% of total (in 2004 was 30%)
‹ Web ‘sales pull’ now rolling out
‹ New Manfrotto portal released
‹ Bogen Imaging website linked to key dealers
‹ Integrated of Bogen Imaging Germany
‹ Successful integration, revenues up by 30% on previous year
‹ Japan and United Kingdom own distribution started
‹ New distribution companies in 2 of the largest world markets in the
imaging industry
50
Key achievements
Both Organic and Acquisition product growth
‹Acquired Kata and Petrol
‹Both delivering impressive growth
‹Integration process in progress
‹Other categories under review
‹Relentless launches of new products
‹R&D strengthened – dedicated project managers
‹New rapid prototyping tools used
‹Many new products at every show
51
Thank you for your attention
Do you have any questions?
What is the next number in the
sequence?
9.1
14.8
9.0
11.7
3.4
26.1
10.9
?
“The full year 2006 Photographic
Division growth rate!”
53