Imagine a better place
Transcription
Imagine a better place
Business Overview Imagine a better place AT A GLANCE ASIA PACIFIC FOCUS DuluxGroup’s origins date back to IMAGINE A BETTER PLACE. FROM THE FRONT GATE TO THE BACK FENCE, DULUXGROUP PRODUCTS ARE AT WORK. WHETHER IT’S A FAMILY ROOM BROUGHT TO LIFE THROUGH COLOUR AND TEXTURE, A GARDEN DECK RESTORED AND COATED TO SEAMLESSLY BLEND WITH THE INDOORS, A BACK GARDEN BRIMMING WITH SPRING VEGETABLES OR A COLOUR-MATCHED GARAGE DOOR THAT SILENTLY GLIDES OPEN – THESE ARE ALL DULUXGROUP PRODUCTS AT WORK. Australia and New Zealand are DuluxGroup’s main markets complemented by our presence in Papua New Guinea and Asia. Approximately 4,000 people are employed across DuluxGroup. 1918 when the foundations of the existing business were established in Sydney. Listed on the S&P/ ASX 100 Index. Paints, specialty coatings and adhesives make up 73% of DuluxGroup revenue. Our customer channels are made up of: 38% Retail Opens to Gate Fold See PDF A$1.6 billion in sales revenue. 62% of DuluxGroup’s business is focused on the maintenance and improvement of existing homes. 62% Trade CONTENTS ABOUT DULUXGROUP 4 Our locations 6 Our history 8 Our core purpose 10 Strategy and growth 12 DULUX PAINTS AND COATINGS ANZ 14 SELLEYS CONSUMER PRODUCTS22 PARCHEM CONSTRUCTION PRODUCTS26 YATES GARDEN CARE 28 B&D GARAGE DOORS AND OPENERS 30 LINCOLN SENTRY CABINET AND ARCHITECTURAL HARDWARE32 ASIA AND PAPUA NEW GUINEA 34 SAFETY AND SUSTAINABILITY36 CONTACT INFORMATION 41 OUR CUSTOMER CHANNELS ABOUT DULUXGROUP DULUXGROUP IS A LEADING MARKETER AND MANUFACTURER OF PREMIUM BRANDED PRODUCTS THAT ENHANCE, PROTECT AND MAINTAIN THE PLACES AND SPACES IN WHICH PEOPLE LIVE AND WORK. Approximately two thirds of DuluxGroup’s business is delivered via trade channels, comprising an established network of customers including, painters, specifiers, architects, engineers, designers, builders, concreters, cabinet makers, garage door dealers, project and facilities managers. In addition to our own extensive company trade store network, DuluxGroup’s products are sold through thousands of retail customer outlets ranging from large national home improvement and grocery retailers to specialist paint and decorating stores, smaller family-owned hardware stores and garden centres. 2014 SALES BY CUSTOMER CHANNEL 38% 62% DuluxGroup invests in its iconic brands and focuses on providing innovative product solutions to drive growth and success through its retail and trade customers. Retail 38% Trade 62% OUR PRODUCTS 2014 SALES BY BUSINESS SECTORS A broad portfolio of products and markets 10% 10% 21% Trade Paints 22% Approximately two thirds of DuluxGroup’s business is focused on the maintenance and improvement of existing homes. Throughout economic cycles, consumers have continued to invest in making their homes ‘a better place’, whether it be through do-it-yourself (DIY) projects or engaging a trade professional. Specialty Coatings 13% 7% Selleys Consumer Products 9% 8% 9% OUR END MARKETS Retail Paints 21% 22% 13% Parchem Construction Products 8% Yates Garden Care 7% Garage Doors and Openers 10% Cabinet and Architectural Hardware 10% DuluxGroup also has some focus on new housing, with a bias towards the premium end of the market where consumer choice of brands plays a greater role. When consumers are deciding which products to use in their own living spaces – whether it be in an existing or a new home - they seek out brands they know and trust. Approximately one fifth of DuluxGroup’s business comes from commercial construction, infrastructure and industrial markets. 2014 SALES BY END MARKET 16% 18% Bendigo Library, designed by MGS Architects, shines in Dulux Colours. Winner, Best Commercial Exterior, 2014 Dulux Colour Awards. Photo by: Andrew Latreille. 4% DuluxGroup’s primary focus is on residential markets, with a strong bias towards existing homes. This is complemented by a presence in commercial and industrial markets. Maintenance and Home Improvement 62% 62% New Housing 18% Commercial Infrastructure 16% Industrial 4% ABOUT 5 OUR LOCATIONS DuluxGroup employs approximately 4,000 people in Australia, New Zealand, Papua New Guinea, South East Asia and China, and has a comprehensive, world-class, scalable manufacturing base and supply chain. • 21 main manufacturing sites • 21 distribution centres • More than 120 company owned trade outlets 2014 SALES BY GEOGRAPHY DuluxGroup holds market leading positions in Australia and New Zealand, with exposure to the higher growth regions of Asia. 11% CHINA (Dalian) ATA Electronic Openers 6% CHINA (Dongguan) Decorative Paints and Powder Coatings Australia 83% New Zealand 11% Asia & PNG 6% 83% MALAYSIA (Selangor) AcraTex Texture Coatings PAPUA NEW GUINEA (Lae) Dulux Coatings ROCKLEA Dulux Decorative Paints CLONTARF B&D Garage Doors WYEE Yates Garden Care WYONG Parchem Construction Products REVESBY B&D Garage Doors PADSTOW Selleys Consumer Products BEVERLEY Dulux AcraTex Texture Coatings MAIN MANUFACTURING SITES REGIONAL SALES AND DISTRIBUTION PRESENCE Cambodia Hong Kong Indonesia Laos Myanmar Philippines Singapore Sri Lanka Thailand Vietnam MALAGA B&D Garage Doors DANDENONG (two sites) Cabot’s Woodcare Dulux Powder Coatings Dulux Protective Coatings KILSYTH B&D Garage Doors CLAYTON DuluxGroup Head Office Dulux Paints and Coatings Innovation and Technology Centre MT DRUITT Yates Garden Care AUCKLAND Dulux Powder Coatings Yates Garden Care B&D Garage Doors WELLINGTON Dulux Decorative Paints CHRISTCHURCH B&D Garage Doors ABOUT 7 OUR HISTORY 1964 1987 1997 2007 Change in BALM status to a public company and name change to BALM Paints Ltd. Acquisition of Acratex Materials Pty. Ltd. Sale in shareholding in ICI Australia by ICI plc. Opening of Orica Consumer Products corporate office in Clayton, Melbourne. Acquisition of the Cabot’s trade mark in Australia, New Zealand, PNG and Fiji. 1998 1969 Acquisition of the Walpumur Co. Ltd. 1918 1946 Creation of BALM in Sydney, Australia. Acquisition of The Australasian United Paint Company (based in SA). Acquisition of 57% of BALM by ICI Australia. 1988 Acquisition of Berger Group’s operations in Australia, New Zealand, PNG and Fiji. Adding Berger Paints, British Paints and Selleys to the company. Change of name of ICI Australia to Orica Limited and establishment of the Orica Consumer Products Group. Sale of Consumer Products Technical Markets division to PPG industries. Commissioning of Powder Coatings manufacturing facility in Dandenong, Melbourne. 1993 Acquisition of assets of Kenbrook Group Pty Ltd including Cabot’s woodcare license. 1999 Acquisition of RotaCota. 1933 1948 Acquisition of Australian ownership of the registered Dulux Trade Mark and access to the newly developed paint technology from E.I Du Pont de Nemours. Termination of association with Du Pont, although ownership of the Dulux registered trade mark retained. 2010 Demerger of Consumer Products from Orica. DuluxGroup listed as an independent company on the ASX. 1971 Change of BALM Paints name to Dulux Australia Ltd. 2008 2004 Acquisition of Yates Garden Care. 2012 1996 1955 1986 Increase ICI plc holding in BALM to 70%. Acquisition of 100% ownership of Dulux Australia Ltd. by ICI Australia. Combination of the Dulux business (Dulux, British Paints, Berger, Walpamur and Cabots) and Selleys to the form the Consumer Products Division of ICI Australia. 2006 Commissioning of woodcare manufacturing facility in Dandenong, Melbourne. Acquisition of Alesco Corporation Limited including Parchem construction products and equipment, B&D garage doors, ATA electronic openers and Lincoln Sentry cabinet and architectural hardware. 1939 BALM commences manufacturing paint in New Zealand. ABOUT 9 OUR CORE PURPOSE PREMIUM BRANDS AND MARKETING COMPREHENSIVE DISTRIBUTION AND CUSTOMER RELATIONSHIPS ACROSS TRADE AND RETAIL CHANNELS INNOVATION AND TECHNOLOGY At DuluxGroup we help our consumers to imagine and create better places and spaces in which to live and work. LEADING CUSTOMER SERVICE OUR PEOPLE AND CULTURE BROAD PRODUCT PORTFOLIO FINANCIAL DISCIPLINE OUR STRENGTHS 1. Our people and culture DuluxGroup’s people span many geographical and cultural backgrounds. They have developed expertise and experience in areas as diverse as marketing, chemistry, colour trends, finance, horticulture, sales, engineering and materials handling. They are united by a shared set of values, which underpins the way we meet our strategic objectives and ultimately deliver on our core purpose. These values are: BeCUSTOMER customerFOCUSED, focused BE CONSUMER DRIVEN and consumer driven Value PEOPLE, people,WORK work safely VALUE SAFELY & RESPECT THEthe ENVIRONMENT and respect environment Innovate and grow – INNOVATE AND GROW – unleash our UNLEASH OURpotential POTENTIAL $ RUN Run THE the BUSINESS business as your own AS YOUR OWN Driven by these values, DuluxGroup people continue to find smarter, market leading solutions for consumers and our retail and trade customers. 2. Proven business fundamentals Premium brands DuluxGroup maintains and develops market leading positions by continually investing in its remarkable portfolio of premium brands. DuluxGroup is home to some of Australia and New Zealand’s most recognised and trusted brands, many of which date back generations. As custodians of those brands, DuluxGroup protects and builds on that heritage by investing strongly in consumer research, marketing and innovation. Innovation DuluxGroup employs more than 120 chemists and technologists. Our world class research and technology centres take inspiration from consumers and customers, local and international technology partners to develop product innovations that surprise and delight consumers. Those innovations are brought to life in products that are rigorously tested to ensure they are worthy of bearing the badge of our iconic brands. Customer service Our sales force – the biggest and most effective in the business – supports an enviable network of trade professionals and our retail customers in meeting the needs of our end consumers. DuluxGroup operates training academies throughout Australia and New Zealand where our retail customers learn about our products and how to use them. Each year more than 5,000 people are trained at these academies. DuluxGroup maintains a strong focus on continuous improvement to its supply chain to ensure market leading customer service to our retail and trade customers. ABOUT 11 STRATEGY AND GROWTH DuluxGroup aims to generate growth by continuing to build on the core, while establishing longer term growth opportunities. The key components of this are: PAINT, SPECIALTY COATINGS AND ADHESIVES (ANZ, PNG) CAPABILITY LED HOME IMPROVEMENT (ANZ) OFFSHORE COATINGS AND ADHESIVES Continue to build on our market leading positions in our core Australian and New Zealand paint, specialty coatings and adhesives businesses Focus on capability-led growth in adjacent premium-branded, consumer home improvement product categories in Australia and New Zealand Build on our niche coatings and adhesives positions offshore for the longer term DuluxGroup has evolved over nearly 100 years from its original heritage in decorative paint for Australian and New Zealand homes. Today it remains predominantly focused on premium branded products for residential home improvement, but with a broader product range and emerging market positions offshore. BUILDING ON OUR CORE MARKET LEADING POSITIONS Paint, specialty coatings and adhesives represent the largest proportion of DuluxGroup revenue, and our businesses have well established, market-leading positions in Australia, New Zealand and Papua New Guinea, which remain our largest markets. DuluxGroup has a strong record of delivering profitable growth and sees further opportunity for growth for its market leading businesses. A strong investment in brands, innovation and customer service has been supported by tight financial discipline. At the same time DuluxGroup has successfully grown from its original decorative paints business into adjacent categories including woodcare, protective coatings, texture coatings, specialty coatings and adhesives. DuluxGroup will pursue further opportunities of this nature, particularly in the wider construction chemicals and specialty coatings markets. CAPABILITY LED GROWTH Additional revenue and profit growth have been generated by broadening our end market and product focus, though we have remained anchored around our core purpose: ‘Imagine a Better Place’. Importantly, this growth has been strategically focused around market leadership in well-structured premium branded home improvement categories, where DuluxGroup can be the ‘natural owner’. WE MAINTAIN A RELENTLESS FOCUS ON FINANCIAL DISCIPLINE AND PRODUCTIVITY IMPROVEMENT. WE INVEST IN THE RIGHT ASSETS TO ENABLE GROWTH. Our assessment of natural ownership goes well beyond product, and focuses on the degree to which DuluxGroup’s capabilities can be utilised to generate sustainable growth. These capabilities include retail channel management (particularly in hardware), trade distribution and store management, brand marketing and consumer engagement. BUILDING LONGER TERM GROWTH OPTIONS Longer term growth options continue to be seeded through DuluxGroup’s investment in China and other parts of Asia, where DuluxGroup has operated for more than 20 years. DuluxGroup will look to grow its positions, mainly in decorative and industrial coatings and construction adhesives, while considering growth opportunities in other markets as they arise. WE SEEK LEADERSHIP POSITIONS IN PREMIUM, HIGHER MARGIN SEGMENTS. WE INVEST IN OUR KEY CAPABILITIES TO ENSURE SUSTAINABLE COMPETITIVE ADVANTAGE AND TO STIMULATE GROWTH. Dulux Weathershield colours shine at Melbourne’s Upper West Side project by Mim Design. A 2014 Dulux Colour Awards Finalist. Photo by Peter Clarke. ABOUT 13 DULUX PAINTS AND COATINGS AUSTRALIA AND NEW ZEALAND With a heritage dating back almost a century, DuluxGroup’s portfolio of iconic paints and coatings brands includes: Dulux, British Paints, Berger, Walpamur, Cabot’s, Intergrain, Feast Watson and AcraTex. Our brands are the leading choice for home owners, renovators and trade professionals throughout Australia and New Zealand. Strong investment in marketing and new product innovation is reflected in industry leading brand recognition and a solid track record of profitable market share growth. PRODUCTS AND END MARKETS DuluxGroup’s Australian and New Zealand (ANZ) paints and coatings businesses manufacture and market premium branded: decorative paints, woodcare coatings, texture coatings, protective coatings, industrial and powder coatings products. CUSTOMER CHANNELS Retail - The business has the most extensive retail distribution in the market, from the largest retail chains to the smallest owner operated hardware stores. It supports its leading retail market positions with a comprehensive marketing programme, a well resourced sales force and specialist Training Academies to assist retail customers in meeting the needs of consumers in their stores. Trade - More than half of sales come from an extensive network of direct relationships with architects, specifiers, professional painters, interior designers and construction professionals who work across residential, industrial, commercial and infrastructure projects. An important part of this is a strong association with the Australian Institute of Architects, which allows Dulux to stay in touch with emerging trends and the needs of industry professionals. Dulux also has a network of qualified interior decorators who work as Dulux Colour Consultants throughout Australia and New Zealand and help home owners to realise their vision through colour and finish. DULUX PAINTS AND COATINGS ANZ 15 CUSTOMER SERVICE AND INNOVATION DELIVER A CHERRY RED RESULT Melbourne’s International Gateway ‘Red Sticks’ have been an iconic feature of the landscape for more than a decade. Melbourne’s International Gateway ‘Red Sticks’ have been an iconic feature of the landscape for more than a decade. However, previous attempts by other suppliers to produce a paint coating that would withstand the elements and retain a vibrant colour and finish had fallen short. On two previous occasions, the landmark cherry red sticks had been painted and subsequently lost their lustre, fading to a dull shade. The Dulux Protective Coatings business stepped in to offer a specially tailored protective coatings solution using Dulux’s Weathermax HBR topcoat. The Dulux technology team knew they had a superior product, which they then tailored to ensure that it delivered the exact pigment and level of durability required for Melbourne’s environment. Discussions with the customer, Transurban Citylink, made it clear that a durable, vibrant colour was critical, but a relatively quick application process was also very desirable. The Dulux chemists worked with the production team at Dulux’s newly commissioned protective coatings plant in Dandenong, testing a number of formulations to develop a paint coating system that not only delivered the superior protective finish and adhesion required, but was also able to be finished in just one coat, minimising the time and costs spent on application. STRONG RESEARCH AND INNOVATION HERITAGE DuluxGroup employs approximately 100 chemists and technologists at its world class Dulux Paints and Coatings Innovation Centre, located at DuluxGroup’s headquarters in Melbourne. The Innovation Centre opened in 2004, building on strong research and development heritage, dating back to when DuluxGroup was part of global chemicals giant ICI. DuluxGroup’s current Melbourne headquarters was the site for one of only three coatings research and development (R&D) centres operated by ICI globally, the other two being in the United Kingdom and USA. Following divestment from ICI, DuluxGroup retained the R&D Centre and increased the focus on innovation, opening the new centre and further growing its technical capability. Project: Transurban City Link Gateway Colour: “City Link Cherry Red” (developed by Dulux Protective Coatings) Coating system: Primer: Durebild STE N35 light Grey Finish: Weathermax HBR DULUX PAINTS AND COATINGS ANZ 17 A WORLD OF COLOUR TO INSPIRE ARCHITECTS AND DESIGNERS Dulux has been at the forefront of developing tools that help industry professionals to imagine the use of colour in transforming places and spaces. The iconic Dulux Colour Atlas, which was launched more than a decade ago, has been heavily relied upon by professionals as the ‘go to’ tool for assessing colour options for projects. Following on from this, Dulux’s World of Colour was developed and launched in 2012 after talking to and listening to those professionals. It is a unique set of tools that allows them to be inspired by and visualise colour in their projects quickly and easily. It includes the printed and electronic Dulux World of Colour Atlas which showcases 4,680 unique colours, including a number of new colours following feedback from the industry. Dulux also provides the atlas in BIM format, the latest generation in electronic design and building modelling, which is favoured by architects around the world. The Atlas is also used by our key retail customers and throughout our own Dulux Trade Store network to help them in providing colour advice to their customers in store. ‘‘ Many of the new colours were inspired by the Australian landscape, reflecting the increasing desire for new buildings to be reflective of the physical environment, in both their structural design and their colour. Many of the new colours were inspired by the Australian landscape, reflecting the increasing desire for new buildings to be reflective of the physical environment, in both their structural design and their colour. For Woods Bagot architect Bruno Mendes, the Dulux ‘World of Colour Atlas’ played an important role in his imaginative use of colour in creating the Knox Innovation, Opportunity and Sustainability Centre (KIOSC) east of Melbourne. An educational facility to help TAFE and secondary school students develop new green skills for the workplace, Mendes was determined to achieve a finish that reflected the building’s aims and was mindful of its physical environment. “Colour was a really important element in the overall design,” explained Mendes. “I like working with Dulux products and have done on a number of projects. Our Dulux representative for this project has a wealth of knowledge and experience and I really respect his advice with regard to colour and finish.” WE WANTED A GRADATION OF GREENS AND IN THE END WE USED 26 SHADES. IT WOULD HAVE BEEN ALMOST IMPOSSIBLE TO GET THIS RESULT SO EASILY WITHOUT THE DULUX COLOUR ATLAS. TO SEE THE RANGE ALL ON ONE PAGE AND JUST SCROLL THROUGH IS SUCH A VALUABLE TOOL AND MADE IT SO MUCH EASIER. -W oods Bagot architect Bruno Mendes ’’ This page: Knox Innovation, Opportunity and Sustainability Centre (KIOSC) Opposite page: Bruno Mendes and Isabel Letham of Woods Bagot Architects. DULUX PAINTS AND COATINGS ANZ 19 DULUX COLOURS OF NEW ZEALAND RESTORE AND PROTECT COMMUNITY TREASURES Public interest in the project has been overwhelming. Thousands of people have taken up the invitation to submit their own hut colour scheme ideas, and hundreds more have volunteered to pick up a paintbrush for their favourite DOC hut. The Dulux Colours of New Zealand have captured the imaginations of home renovators, designers, interior decorators and professional painters since launching about five years ago. Much of the colour palette is named after the essential colours and unique features of New Zealand’s natural environment and landmarks. To further cement the Dulux Colours of New Zealand range in the hearts of consumers, Dulux has partnered with the Department of Conservation (DOC) for three years to provide 18,000 litres per year of paint and wood coating products to protect and promote the Heritage Huts that line the walking and trekking trails throughout New Zealand’s stunning, natural landscape. DOC’s network encompasses 973 iconic huts and lodges, some of which are historically listed. Loved for generations, it’s estimated that New Zealanders account for two thirds of the 300,000 overnight stays at the huts each year. Dulux is also providing expert colour advice for the scheme, creating natural colour palettes – inspired by the coast, tussock lands, forest ranges, sun plains and mountain top scenery. Dulux has now extended the sponsorship to support protection of the nesting sites for the Kea, a colourful New Zealand mountain parrot, which is an endangered species. BEFORE AFTER WOODCARE DuluxGroup’s suite of premium wood coatings brands is a market leader throughout Australia and New Zealand, underpinned by a strong record of innovation. DULUX PAINTS AND COATINGS ANZ 21 PRODUCTS AND BRANDS SELLEYS CONSUMER PRODUCTS Martin Selley founded the Selleys Chemical Company more than 75 years ago. Today as part of DuluxGroup, Selleys markets a portfolio of iconic brands and a constantly innovating range of products for the “Do It Yourself” (DIY) consumer and the professional trades person alike; knowing that “If It’s Selleys It Works”. Selleys is a household name for Australians and New Zealanders, and has a growing reputation in South East Asia as well. Selleys is a leading manufacturer of the highest quality products within the repair, fix and maintenance segments of the home improvement market. This includes Wet Area (Sealants), Liquid Nails (Adhesives) and Spakfilla and Polyfilla (Fillers), to name just a few. Selleys consumer products include; adhesives, sealants, fillers, paint preparation products (including brushes, rollers and paint strippers), car care products (including waxes, polishers and degreasers) and specialised household cleaning products OPERATIONS AND CUSTOMER CHANNELS driven by consumer insight coupled with research and development, which has enabled it to remain market leader within its product categories. Selleys products are marketed to consumers and professional tradespeople through an extensive network of retail customers, from the largest home improvement and grocery retailers, to specialist bathroom suppliers and smaller owner operator hardware stores. Selleys products are also sold through the Dulux Trade Stores and other paint specialists throughout Australia and New Zealand. Selleys Liquid Nails Heavy Duty is a recent and highly successful innovation within the construction adhesive segment. This new product was launched on the insight that tradespeople require a fast and strong bond on the worksite, to allow them to complete their job efficiently. Selleys Liquid Nails Heavy Duty is “twice as strong in half as long”, enabling mechanical fasteners to be removed after only 8 hours. (including BBQ wipes, specialised surface cleaners and pest control products). INNOVATION Selleys has a long and proud history of innovation across the diverse product portfolio it offers. Selleys is ® SELLEYS CONSUMER PRODUCTS 23 SELLEYS CONSTRUCTION ADHESIVES AND SEALANTS Innovation and collaboration deliver clever solutions. Persistent focus on research, technology and innovation has Selleys meeting a growing need for commercial construction customers. Selleys has developed a uniquely formulated sealant that is fire and acoustic rated for the multiresidential and commercial construction markets. Selleys Proseries Fireblock is the result of three years of development, which included extensive consultation with leading commercial builders and acoustic experts. The formulation, developed by the Selleys technology team in New South Wales, has been tested to perform to Australian and international standards. Selleys Proseries Fireblock was developed to address multiple market needs that were unmet by traditional acrylic and polyurethane fire rated sealants. Since launching, the product is proving increasingly successful, displacing competitor products. Selleys Proseries Fireblock is being specified for a number of large commercial projects including The Quays development at Docklands in Melbourne, the 36 storey Art on the Park project in Melbourne and the Vantage Apartments project in Sydney. It has also been specified for the $6 billion Royal Adelaide Hospital development, for which Parchem is also providing all of the concrete protection, waterproofing and grouting systems. Selleys Proseries Fireblock Selleys Proseries Fireblack has been specified for The Quays multi-residential development at Melbourne’s Docklands. SELLEYS 25 Sea Cliff Bridge, New South Wales, Australia. Roads and Martime Services New South Wales used FosRoc’s Dekguard S protective coatings provided by Parchem. PARCHEM CONSTRUCTION PRODUCTS CUSTOMER DRIVEN INNOVATION OPERATIONS AND CUSTOMER CHANNELS With a strong focus on innovation, Parchem has a dedicated team of chemists creating clever solutions for customers. Parchem’s local R&D team works with its Australian and New Zealand customers to specifically tailor products to meet unique customer specifications. The team consults directly with end users - such as engineers, designers and contractors - to design and thoroughly test finished products. Parchem’s Training and Applications team then trains its customers in the use of those products. The business has built a premium brand position amongst an extensive network of civil engineers, asset owners and developers, specifiers and applicators. The team has access to a global network of new technologies, ensuring that the business stays at the forefront of new construction and decorative techniques and finishes. Parchem’s business comes from its direct relationships with end users who work with Parchem’s specifications team. Additionally sales come through its network of Parchem trade stores and numerous resellers throughout Australia and New Zealand. END MARKETS The majority of Parchem’s business is focused on nonresidential markets. Demand is driven by public infrastructure such as hospitals, airports, bridges and road networks; Parchem Construction Products is a leading manufacturer and supplier of construction chemicals, decorative concrete products and related equipment for the Australian and New Zealand civil engineering, industrial, commercial, infrastructure, mining and residential construction markets. PRODUCTS AND BRANDS Parchem’s product portfolio comprises: Parchem’s leading position reflects more than 50 years of unmatched experience and technical expertise, and the quality of its trusted brands, which include Emer-Clad, Durafloor, Fosroc, Selleys, Vandex, Corkjoint, Sewpercoat, Index and Flextool. Construction chemicals Including: jointing systems and water stops; concrete repair, grouts and protective engineering coatings; industrial adhesives and fillers; industrial flooring and surface treatments; waterproofing and architectural coatings. commercial building; industrial investment in sectors including mining and resources; high rise developments and new housing. Recent projects include the Melbourne, Adelaide and Perth Desalination Plants; Brisbane’s Gateway Bridge; the Gorgon LNG Project; and the Brisbane Airport Link Northern Busway project. A smaller proportion of Parchem’s revenue comes from the construction and renovation of residential homes, primarily focused on decorative paving and driveway products and applications. Customers – generally smaller applicator companies - are trained in the application of products at a dedicated Parchem training facility to ensure that they meet the expectations of home owners and provide the high quality finish for which Parchem products are designed and renowned. Parchem’s stencil pattern concrete in ‘Desert Sand’. Construction equipment Including: soil and concrete compaction equipment; concrete vibrators and finishing equipment; and surface preparation equipment such as polishers. Decorative concrete products Including: coloured, stamped and stencil concrete for driveways and footpaths; and decorative internal concrete flooring. * * Distributed brand PARCHEM CONSTRUCTION PRODUCTS 27 PRODUCTS AND BRANDS YATES GARDEN CARE Yates is Australia and New Zealand’s leading manufacturer and marketer of products for home gardening and small scale commercial horticulture. Products include seeds, pest and disease control, lawn care, fertilisers, pots, potting mix and organic gardening products. With origins dating back to the establishment of the Yates garden seeds business in the late 1800s, Yates boasts an array of brands that have become household names, including Yates, Hortico, Watkins, Nature’s Way, Dynamic Lifter, Zero, Ratsak and Blitzem. Yates informs and inspires great gardens. From ripe tomatoes in the vegetable patch to beautiful spring roses in the front garden, there would be few Australian and New Zealand homes untouched by Yates products. OPERATIONS AND CUSTOMER CHANNELS Yates products are marketed to consumers through an extensive network of retail customers, from the largest home improvement and grocery retailers, to smaller owner operator hardware stores, nurseries and garden care centres. Yates My Garden app - Industry Innovation Award Winner, 2015 Melbourne International Flower and Garden Show; Best Digital Advertising or Communication (Culture or Lifestyle) Award Winner, 2015 Digital Industry Association Awards. Yates is relied upon by home gardeners for its indispensible tips and advice. The iconic Yates Garden Guide was first published in 1895. Now in its 43rd edition, it has gone on to become one of the greatest traditions in Australian publishing and has sold more than 7 million copies. The Guide has become an essential source of practical advice for home gardeners. Yates is also leading the way in digital communications with its ‘My Garden’ smart phone App, which includes a ‘Garden Problem Solver’ and its online ‘Ask an expert’ advice and product recommendation service. Yates products are also extensively used by landscapers and garden maintenance professionals throughout Australia and New Zealand. CONSUMER ENGAGEMENT Yates has partnered with Landcare Australia for more than seven years to arrange a series of challenges to encourage communities to grow their own food and gardens. ‘‘ THIS IS JUST ONE MORE WAY YATES CAN GET YOUNG PEOPLE EXCITED ABOUT GARDENING, HELP THEM TO UNDERSTAND WHERE THEIR FOOD COMES FROM AND INSPIRE THEM TO CREATE MEALS FROM THEIR GARDEN. - Yates garden expert, Judy Horton The Yates Junior Landcare Challenge encourages young people to connect with the land and the soil, learn how plants grow and incorporate gardening into their everyday lives from an early age. The challenge highlights the positive health, community and environmental benefits of growing your own winter ’’ vegetables. It has received more than 4,000 entries. Yates also helps young Australians to learn more about gardening by joining the Yates Garden Club or the Yates Garden Greenies Club or by following Yates Gardening on Facebook for lots of helpful gardening tips. YATES GARDEN CARE 29 B&D GARAGE DOORS AND OPENERS This business is Australia and New Zealand’s leading manufacturer of garage doors and openers. Its product range includes garage doors and automatic openers for residential, commercial and industrial markets. Its portfolio of iconic brands includes B&D, Garador, Dominator and Automatic Technology Australia. PRODUCTS AND BRANDS The business’s heritage dates back to 1946. The B&D Roll-A-Door was unveiled in Sydney in 1956, and has grown to become an Australian icon and a consistent feature of urban streetscapes. The B&D RollA-Door has more than 70% brand awareness amongst Australian home owners and has been named one of Australia’s most successful innovations. B&D also manufactures a range of industrial doors for use in commercial properties. Automatic Technology Australia (ATA) is a leading designer and manufacturer of garage door and gate openers for residential, commercial and industrial premises as well as related electronic, radio frequency and remote control systems. ATA products are designed in Australia, manufactured in our factory in China and exported globally. OPERATIONS AND CUSTOMER CHANNELS The business has manufacturing operations in Australia, New Zealand and China. It goes to market through a network of more than 1800 customers including accredited dealers, commercial builders and shed manufacturers, as well as selling direct to home owners. B&D DEALER SHOWROOMS B&D has embarked on a strategy designed to improve and consolidate the presentation and performance standards of its dealer network. Harris Doors’ new showroom on Australia’s Gold Coast was one of the first examples of the strategy. Anyone who experiences it can see it’s set to very high standards. B&D identified the need for a consistent and impactful impression that can be rolled out through the entire dealer network. This will strengthen the brand’s presence and reinforce its leadership position. the launch, several dealer showrooms around Australia have been upgraded with the new look and feel, with the plan to roll out the new showrooms throughout the national dealer network over three years. Harris Doors has been a well known and established name on the Gold Coast for more than 25 years and this new showroom, prominently positioned in a high traffic thoroughfare, takes it to a whole new level. Since B&D has been a pioneer in garage door automation for decades and more recently took garage door control to the next level by launching the all new Controll-A-Door Smart Phone Control Kit. SMARTPHONE CONTROL KIT The kit allows homeowners to securely control a garage door via the free Controll-A-Door Smart Phone App. It’s the perfect solution for those of us who carry our phone with us all the time and also allows users to monitor and control their garage door while away from home, something a traditional remote control cannot do. For those of us who have ever left the house in the morning and thought, “Did I forget to close the garage door?”, problem solved. The App allows you to monitor and control your garage door while you are at home, at work, or anywhere in the world. In addition to this great feature the kit uses extended range technology so that an entrance gate can also be operated on the Controll-A-Door App. B&D GARAGE DOORS AND OPENERS 31 PRODUCTS AND BRANDS LINCOLN SENTRY CABINET AND ARCHITECTURAL HARDWARE From its establishment in Brisbane in 1986, Lincoln Sentry has evolved to become one of Australia’s leading distributors of premium quality hardware and components to the cabinet making, window, door and glazing industries. END MARKETS Lincoln Sentry supports its premium brands by providing trade customers, specifiers and end consumers with the best advice and service to implement the right hardware solutions to suit current and future trends. They are proud suppliers of quality brands including Blum, Hera, Secure View, Dow Corning, Whitco and Breezway. Lincoln Sentry is unique in offering multiple products such as drawer systems and hinges, decorative lighting, sinks and basins, glass and glazing products as well as tools and accessories. This integrated approach offers product and technical expertise for specification and supply for all residential and commercial projects. Creating a beautiful yet functional kitchen is achieved with the right combination of products that reflect a customer’s style and needs. OPERATIONS AND CUSTOMER CHANNELS SHOWROOM PUTS HOME OWNERS IN THE DRIVER’S SEAT A network of Lincoln Sentry branches across Australia distributes quality products sourced from around the globe. Lincoln Sentry’s expert sales team provides technical support, product training, showroom design, product assistance, marketing support and on-site after sales servicing. Additionally, Lincoln Sentry’s dedicated specification representatives and resources ensure specifiers are kept abreast of new trends and innovative products in the market. * More than 90% of Lincoln Sentry products are fitted in the new housing and existing home renovations sectors, with a stronger bias towards home renovations. Having lived and worked in kitchens previously, renovators appreciate the value in choosing quality fittings. Lincoln Sentry supplies this market with quality products that offer style, comfort and longevity, which is at the forefront of consumers’ minds. Lincoln Sentry’s Function Light Motion flagship showroom in Alexandria (NSW) is the company’s first consumer focused showroom, demonstrating the importance of workflows, functionality, lighting, ergonomics and motion. The Function Light Motion Showroom was officially opened in November 2012, complete with the state’s first and only Kitchen-Test-Drive. The Kitchen-Test-Drive is a Blum® initiative developed for end consumers to experience their kitchen prior to installation. * The Function Light Motion Showroom is regularly used by architects and designers visiting with clients. Showroom staff welcome and encourage industry professionals to use the showroom as their own. Juliette Clydesdale, Interior Designer at Insynk Designs, uses the Kitchen-Test-Drive with clients and says, “Unlike other kitchen showrooms, the Lincoln Sentry showroom showcases the ‘mechanics’ of a kitchen. This allows me to educate clients and demonstrate their options with ease, convenience and confidence. Designing a kitchen is a three-dimensional exercise and the showroom provides the opportunity to place emphasis on the internal aspect of the design. “Clients can picture themselves in their new kitchen. It gets them involved in the design procedure and helps to reassure them that they understand and like the layout. A kitchen is generally a big investment, not only dollar wise, but also in lifestyle, I highly recommend a visit to Lincoln Sentry”. New product innovations and the standard of joinery in Australian homes have reached a higher level. Consumers expect more in terms of functionality in their new kitchens and Lincoln Sentry’s showrooms are designed to educate, inspire and provide solutions to the industry as well as end consumers. * * * * Distributed brands LINCOLN SENTRY CABINET AND ARCHITECTURAL HARDWARE 33 ASIA AND PAPUA NEW GUINEA To complement its core market leading Australian and New Zealand businesses, DuluxGroup is continuing to seed longer term growth options in China and other parts of Asia where DuluxGroup has operated for more than 20 years. DuluxGroup has also been manufacturing Dulux Paints in Papua New Guinea for more than 40 years. BUSINESSES AND BRANDS OPERATIONS AND CUSTOMER CHANNELS BUILDING NICHE POSITIONS DuluxGroup’s presence in the higher growth markets of Asia consists of the DGL Camel business in China and Hong Kong and the DGL International business in South East Asia. Camel paints are manufactured in Dongguan and are sold through consumer retail and specialist trade outlets. AcraTex products are manufactured in China and Malaysia, and exported to Hong Kong, Singapore, Brunei, Indonesia and New Zealand. Selleys products are manufactured in China for sale in mainland China, and exported to Hong Kong, Malaysia and Macau. DuluxGroup’s DGL International is developing niche opportunities in selected parts of Asia, by leveraging the successful customer relationship model developed in DuluxGroup’s core Australian and New Zealand. DGL International has formed strong partnerships with large commercial customers such as aluminium extruders, which already have a well-established and significant presence in particular Asian markets. Through these businesses DuluxGroup has targeted niche positions across multiple categories, including decorative paint, industrial paint, texture coatings, powder coatings, adhesives, sealants and accessories. Brands include Camel Paints, AcraTex texture coatings and Selleys sealants and adhesives. DuluxGroup is a market leader in PNG where it has been manufacturing Dulux paints since 1968. The business has grown by supporting a strong investment in marketing, with excellent customer relationships and service in the retail hardware sector as well as with commercial developers. Dulux Paints in PNG are sold throughout retail stores and via a network of direct relationships with trade professionals in the commercial development, industrial and marine markets. DGL Powders has forged a relationship with Sri Lanka’s largest aluminium extruder, Alumex. Alumex had traditionally used only local suppliers, but is increasingly turning to DGL Powders for its superior application quality and performance guarantees. In Thailand, DGL Powders has formed a relationship with D&W(Asia), which is the Bangkok based aluminium fabricator for New Zealand’s Fletcher Aluminium. D&W now solely promotes the use of DGL Powders for all of its commercial and residential construction projects across Thailand and South East Asia. DGL Powders has developed this important partnership through a proven ability to consistently deliver high quality products in a greater range of colours and in shorter lead times through superior supply chain capability. LAYING THE FOUNDATIONS FOR GROWTH IN CHINA DuluxGroup is gradually growing its exposure to the higher growth markets of Asia through its DGL Camel business in China and Hong Kong. In doing so, it has focused on niche product category opportunities. DGL Camel has drawn from DuluxGroup’s ANZ marketing and innovation expertise, and combined it with its own local market experience to broaden its product range. It provides a complete premium offering to targeted segments of the Chinese construction market. Much of its focus is on the growth in commercial architectural projects requiring high durability coatings. Its portfolio includes texture coatings, powder coatings and fluorocarbon (PVDF) coatings. DGL Camel’s AcraTex texture coatings business has increased its presence in targeted Chinese markets by establishing strategic partnerships with residential and commercial building developers and with key players in the construction supply chain such as fabricators and curtain wall companies. Asia Recent projects include the Raffles City project in Hangzhou and the China Expo Centre in Qingpu, Shanghai. DEVELOPING NICHE OPPORTUNITIES OFFSHORE FOR THE LONGER TERM DuluxGroup Limited is an Australian company that owns the Dulux® trade mark in Australia, New Zealand, Papua New Guinea, Samoa and Fiji only and the Cabot’s® trade mark in Australia, New Zealand, Papua New Guinea and Fiji only. DuluxGroup Limited is not associated with, and has no connection to, the owners of the Dulux® and Cabot’s® trade marks in any other countries, nor does it sell Dulux® and Cabot’s® products in any other countries. PNG ASIA AND PAPUA NEW GUINEA 35 DULUXGROUP SAFETY AND SUSTAINABILITY POLICY DuluxGroup’s Safety and Sustainability Policy is aligned with our business core purpose of helping consumers to imagine and create a better place. The sustainable management of financial, environmental and social impacts of our operations is fundamental to the success and well-being of both our business and our stakeholders. SUPPORTING OUR COMMUNITIES DuluxGroup aims to be a welcome member of the communities in which we operate. Under DuluxGroup’s community participation program, all employees are supported to undertake volunteer work to help those in need. This work complements the community support activities undertaken by a number of our businesses. SES Hunters Hill with their new B&D roller door. DuluxGroup has donated products, and its employees have volunteered to assist a number of community organisations, including Mental Illness Fellowship Respite House, Glenallen Specialist School in Melbourne, Minda Crisis Centre and Malvern Early Learning Community Center. Dulux New Zealand continued to work with Habitat for Humanity and provided paint for 53 community housing projects. Yates employees in Western Australia worked with Landcare to plant 2,200 plants along Bannister Creek in Ferndale. B&D donated roller doors to the NSW State Emergency Service Hunters Hill unit to help securely store rescue equipment. For a number of years Dulux has been pleased to support e-Motion 21 in celebrating World Down Syndrome Day and in enhancing the lives of children and young adults through dance, fitness and performance. Dulux Papua New Guinea worked with Port Moresby authorities on the launch of a community campaign to encourage creation of artwork and prevent graffiti on local buildings and fences. Selleys, Yates and Dulux employees from Padstow participated in the Clean Up Australia program for the 14th consecutive year, while Dulux Rocklea employees participated in a local community event to clean-up Stable Swamp Creek at Coopers Plains. Our vision of “A Future Without Harm” expresses our commitment to continually improve the safety and sustainability performance of our business. This includes the safety, health, environmental, and community impacts associated with our products, operations and people. In recognising our responsibilities, DuluxGroup aspires to deliver on our vision and therefore we make this commitment to all of our stakeholders, including employees, suppliers, customers, consumers, shareholders, regulators and the community. To achieve this, we will: •C ontinually strive to identify and understand safety and sustainability impacts associated with our business activities, including products, operations and people. •A pply a rigorous and consistent risk based management approach to ensure our business resources are focused on minimising the most significant impacts. •E stablish meaningful improvement targets and plans to meet or exceed the expectations of our stakeholders and deliver ongoing reductions in our business impacts. •E ngage in a transparent and ethical manner with all stakeholders to share understanding of our impacts, progress, and learnings. •E ncourage meaningful relationships with all stakeholders to develop our shared commitments and responsibilities in addressing common sustainability challenges. Our work is never so urgent or important that we cannot take the time to do it without harm to ourselves, others, or the community. In implementing this policy we will provide the necessary leadership and accountability throughout DuluxGroup as we integrate safety and sustainability focus into our daily business activities and work towards our vision of “A Future Without Harm”. SAFETY AND SUSTAINABILITY 37 PROTECTING COMMUNITY ASSETS Surf Life Saving Clubs have been an iconic fixture around Australia’s coastline for more than a century and play a vital role in saving and protecting life on Australia’s beaches. Dulux is working with Surf Lifesaving Australia to help paint every Surf Life Saving Club in Australia. Alva Jones and Berger volunteers at her newly painted home. Surf Life Saving Clubs are an iconic feature of Australia’s shoreline and are subject to some of the harshest environmental conditions. Dulux is working with local communities to protect these precious assets using Australia’s toughest exterior paint, Dulux Weathershield. The three year project commenced in 2012 and more than half of the nation’s approximately 300 surf clubs have been painted or are in the process of being painted. Dulux and Australia’s surf coast communities are well on the way to achieving their target. BERGER LENDS A HAND Berger ‘Paint for a Mate’ lends a helping hand to the families and widows supported by Legacy Australia by giving their homes a fresh coat of paint and general tidy up. Legacy is dedicated to caring for the families of incapacitated or deceased veterans, supporting more than 100,000 widows, children and dependants with a disability. Berger is working with its customer, Inspirations Paint stores, and local volunteers to repaint more than 40 homes and community centres across Australia. The program highlights Berger Paint’s commitment to Legacy Australia by supporting families and widows of servicemen who have fallen on tough times. Mrs Jones has lived in her home since she was married in 1937. Her late husband Frederick built their family home room by room over time, where together they raised two sons. Berger has also worked with Inspirations paint to raise almost $20,000 for Legacy by donating $2 from every can of Berger paint sold during a particular month, as part of its ‘Every Litre Bit Helps’ campaign. For New South Wales resident Alva Jones, many hands made light work, as a flurry of activity over three days transformed her 70 year old weatherboard home in Newcastle. The local community, led by Berger Paint and Legacy Newcastle, came together to give her home a much needed facelift. “I can’t believe what they have been able to achieve in such a short amount of time. They have done an absolutely wonderful job,” said Mrs Jones. YATES HELPS KIWIS THRIVE Yates is supporting Rainbow Springs Kiwi Encounter in Rotorua, New Zealand, in its important work to conserve the country’s native kiwi bird population. The important breeding programme has grown over the past two decades to become the largest kiwi hatching facility in the country and has successfully hatched, raised and released 1000 kiwi chicks back into the wild. Yates is proud to sponsor this initiative and one of the latest additions has been named after a new variety of Yates Sweet Pea called ‘Firefly’. Firefly now joins a long line of Yates sponsored kiwis - Blitzem, Moss, Peat, Thrive and Yates – that have been released back into their natural habitats. SAFETY AND SUSTAINABILITY 39 DuluxGroup Limited Registered Office 1956 Dandenong Rd, Clayton, Victoria 3168, Australia Telephone: +613 9263 5678 Facsimile: +613 9263 5030 Email: [email protected] Website: www.duluxgroup.com.au Emergency Response Service: Australia - phone 1800 033 111 (cost of a local call from within Australia) New Zealand - phone 0800 734 607 (cost of a local call from within New Zealand) The DuluxGroup Emergency Response Service (ERS) operates 24 hours a day, 7 days a week, providing telephone advice and assistance to the public, emergency services and others on incidents relating to the transport, storage and use of chemical products and raw materials in emergency situations. Printed April 2015