Welcome to Domino Printing Sciences plc Jan 2014

Transcription

Welcome to Domino
Investor Presentation
January 2014
Table of Contents
1
Domino Printing Sciences Group Overview
2
Domino Mission and Aims
3
Market Overview
4
Business Model and Strategy
5
Our Markets and Products
6
Breakdown of Sales
7
Investment Proposition
Domino Printing Sciences plc
2
About us
We provide customers with
the ability to code, mark,
address, decorate or
personalise their products:
Founded
in 1978
2400 employees
worldwide
Sales in 2013
of £335.7m
In line in the manufacturing
process and all production
conditions
Adding fully variable alpha
numeric, graphics and machine
readable codes to products
or packaging in real time
HQ in Bar Hill,
Cambridge,
England
Listed on UK
Stock Market
Underlying
pre-tax profits
of £53m
3
Our Team
Andrew
Herbert
Rachel Hurst
Group Operations
Director
Joined in 1990
CFO
Joined in 1986
Nigel Bond
CEO
Joined in 1987
Vicki Sanderson
Dick Wallin
Group HR Director
Joined in 1994
Kirsten Smyth
Group IT Director
Joined in 1999
Group Technical
Director
Joined in 2006
Robert Pulford
Managing Director –
Digital Printing
Joined in 1995
David Bywater
Richard Pryn
Group Product
Director
Joined in 2013
Co. Secretary
& Legal Counsel
Joined in 1996
28 27
24
20 19 18
15
8
1
Number of
years worked
at Domino
4
Our Mission and Aims
Our Mission:
To develop and deliver equipment,
consumables and services to
manufacturers and commercial printers
worldwide, providing superior coding,
marking and digital printing solutions
with convenience, security, value and
peace of mind.
Our Aim:
To achieve leadership in our chosen
markets delivering both exceptional
value to our customers and superior
returns to our shareholders
5
Coding and Marking – Market Characteristics
Market size
Market share
£1.7bn CAGR ~4-5% (WW GDP)
17%
CIJ
Laser
TTO
Primary Package coding
TIJ
PIJ
VIJ
PALM
Domino
Others
Secondary/Tertiary
Package coding
Sources: Infotrends, CB Consultants, Corporate reports
6
Digital Printing – Market Characteristics
(Currently addressable) market size
£0.44bn CAGR >11% (WW)
Market share
a
Traditional Digital Printing sectors
16%
Share
Domino
Others
£135m
CAGR 2%
a
b £300m
CAGR >15%
Mail Service
Postal Service
Commercial Printer
Label and Tag printer
Packaging Convertor
Tickets and Forms
Other
Digital Colour Label Printing
b
Digital Colour label market
<1 %
share
Domino
Others
Sources: Corporate and market reports
7
Key Market Drivers
Coding and
Marking
Digital Printing
Globalisation
Changing
Consumer
Behaviour
Emerging
Market
Growth
Sustainability
9
9
9
9
9
9
9
9
Increased
Product
Traceability
Improved
Productivity &
Performance
9
9
9
8
Business Model and Strategy
Capital
Financial & Total
Cost of
Ownership
Solutions
Customer
acquisition
Increase
equipment
installed base
Fluids &
Consumables
Long-term customer
relationships from full
product life cycle
Recurring
revenues from
aftermarket
Equipment
cross selling
Customer
development
Stage 2
1
To build long-term
customer relationships
through providing
unparalleled expertise
2
To maintain product
leadership through
superior innovation
3
To deliver service
excellence through a
responsive organisation
4
To make strategic
investments that
capitalise on future
market drivers
5
To ensure business
sustainability
Aftermarket
Equipment
upgrade/
replacement
Customer
rejuvenation
Strategy
Customer
development
Stage 1
Service, Spares
& Warranty
Technical &
Application
Support
Training &
Certification
Software as
a Service
9
Strategy
1
To build long-term customer relationships through providing unparalleled expertise
Globally aligned teams
Ensuring a skilled and industry experienced workforce
Developing a culture of collaboration with our customers
Case study:
Hangzhou Wahaha Group
In 2013, Hangzhou Wahaha Group,
the largest beverage company in
China set out to develop a nonalcoholic alternative to beer,
branded as Gwas and utilising an
innovative dark bottle design.
The packaging necessitated
a high contrast ink for the coding
of the bottles which could be
applied at high speed. In
partnership with Wahaha, we
developed an effective solution
which was subsequently used as
the coding equipment of choice
in production.
10
Strategy
2
To maintain product leadership through superior innovation

Consistent high level investment in development
Ongoing innovation of full solution portfolio, relevant to technology trends
Tailored developments for focus market sectors and regions
Expertise in fluids, consumables and after market products
Product portfolio consistency and simplicity
Reliable and efficient products
Case study:
Wells & Young Brewery
Investment in Domino’s latest A-Series
i-Tech continuous ink jet printer technology
has enabled the UK’s largest private brewery,
Wells & Young’s, to boost productivity and
reduce costs – with the company set to
almost fully recoup its investment after
just one year.
The UK based business, which was founded
in 1876 and produces a range of cask beers
and lagers, turned to Domino after
deciding to replace its existing coding and
marking machines. Domino solutions are
now deployed to code bottles, cans, trays
and cardboard boxes.
11
Strategy
3
To deliver service excellence through a responsive organisation

Consistent high level investment in development
Integrated global service network
Committed and effective service teams
Fast response and resolution of issues
Brand recognition underpinned by service and support excellence
Case study:
Adelholzener
The mineral water company
Adelholzener Alpenquellen, based
in Germany produces a variety of
non-alcoholic beverages under the
brand names Adelholzener and
Active O2. Commenting on the
relationship with Domino, Rudolf
Kroof, Head of Electrical
Engineering commented...
“For over 14 years we have
established a trusting and reliable
partnership. We also value our
relationship with the service
technician who looks after us,
and represents an excellent
point of contact.”
12
Strategy
4
To make strategic investments that capitalise on future market drivers
Acquisitions and strategic investment in new growth areas, in key technologies,
markets and geographies
Case study:
Investing in digital printing
Digital printing, using ink jet
technology, is an area of significant
growth in the printing industry.
Strategically, the sector provides
the opportunity for us to utilise
our ink jet core competency and
leverage our market experience
with brand owners and label
printers. As a consequence, we
have made a number of key
investments to support our
growth in this industry in 2013.
(See Development and
Performance of the business –
Research and Development).
13
Strategy
5
To ensure business sustainability

Environmentally friendly product portfolio
Focus on waste, energy and overall carbon footprint reduction
People-based community engagement
Supply chain total life cycle improvement
Case study:
Environmentally friendly inks
In 2013, we developed ink technology based on
vegetable oil for outer case coding. In anticipation
of increasingly stringent regulation, the ink allows
for recyclability of foodstuffs packaging whilst
improving overall product performance.
14
Our Solutions
Coding and Marking
Service
free
Multi
purpose
Continuous
Inkjet
Optimum
code quality
at high speeds
Unique ink
performance challenging
substrates
Aftermarket
Fluids
Spares
Service
Print
heads
Ribbons
Filters
High
speed
coding
Highest
quality
coding
Thermal
transfer
overprint
Laser
Flexible
packaging
Total cost
of ownership
Print &
Apply
Secondary
& tertiary
packaging
Thermal
Inkjet
Piezo
Secondary
packaging
Maximum
configurability
Application
Competitive advantage
Extended
warranty
Proven
technology
15
Our Solutions
Digital Printing
Highest productivity
digital printing press
Monochrome & full
colour digital printing
Piezo
Data
Controllers
Suitability
for all
secure
universal variable
applications
Most
data control
capability
Binary
High
speed
& quality
applications
Most versatile
Solution for
high speed
applications
Aftermarket
Fluids
Spares
Service
Application
Competitive advantage
16
Our Brands
Total Market
Value-based continuous
inkjet technologies
Custom Print & Apply
labelling solutions
Fume extraction for
inkjet and laser
Full range coding and marking
and digital printing technologies
Single Technology
Multi Technology
Specialist continuous
Inkjet solutions for
industrial sectors
Specialist inkjet printers
for the postal sector
Developer & integrator
of inkjet technology
Niche Market
17
Our Sales by Geography
Regional sales
United
Kingdom
North
America
Western
Europe
South
America
Other
America
UK
29%
27%
21%
7%
7%
5% 4%
16%
USA
France
Germany
9%
7%
6%
9%
19%
Other Europe
Asia
Pacific
Key markets:
Developed
Developing
Middle East
& Africa
Central &
Eastern
Europe
12%
China
India
RoW
6%
16%
* 2013 sales revenue
Above figures related to revenue in 2013
18
Our Sales by Sector
1
2
3
4
5
6
7
Food and Beverages
Pharmaceutical and Healthcare
Printing
Industrial
Electronic Components
Construction and Chemicals
Others
43%
14%
10%
10%
6%
5%
12%
1
2
3
4
5
6
7
Above figures related to revenue in 2013
19
Investment Proposition
1sdas
Our track record
Experienced and proven management
team delivering sustained growth,
profits, cash generation and creation
of shareholder value
2
Strong drivers of demand
Legislation led, applicable across
many sectors in all major economies
3
Robust business model
Growth from product innovation
& new technology with sustained
after market revenues from large
equipment installed base
Broad customer base with no
dependence upon any one
customer or sector
4
Global network
Experienced sales subsidiaries and
independent distributors worldwide
5
Cash reinvestment
Ongoing commitment to R&D to
maintain product leadership
Acquisition of complementary
businesses and product to extend
capabilities
6
Shareholder return
Progressive dividend policy resulting
in dividend growth in every year since
the company's listing in 1984
20