capital markets day 2014

CAPITAL MARKETS DAY 2014
Heusenstamm, Germany
26 November 2014
Germany – Latest Developments & Trends
Georg Harrasser, Regional President, Central, Northern and Eastern Europe
Die Nummer 1 am Dach in Deutschland!
Page 2
Agenda
• Germany – a big and stable market
• Megatrends in German residential building
• Braas Germany’s excellent position in this important market
• Future key priorities
Page 3
GERMANY – A BIG AND STABLE MARKET
Page 4
Construction investments stable on high level
Increase of 12.4% over last 5 years
Development of construction investments
EUR billion, in prices
of the previous year
280
+12.4%
270
253
260
247
240
238
229
240
239
238
2006
2007
2008
230
237
2009
2010
257
259
259
2011
2012
2013
220
200
180
160
140
120
100
80
60
40
20
0
2001
2002
2003
2004
2005
Source: Statistical Office
Page 5
Residential construction is the biggest part
With growing importance
Split-Up of construction investment
12%
26%
44%
1970
30%
30%
2013
58%
Residential
Commercial
Public
Source: Statistical Office
Page 6
Germany has one of the biggest pitched roof markets
in Europe…
Size of the German pitched roof market in European comparison
in million m2
100
90
80
70
60
50
40
30
20
10
0
2010
2011
Germany
France
UK
2012
2013
Italy
Source: Based on management estimates
Page 7
…with rather stable structures...
No significant changes
in used roofing materials
Stable new build market,
but RMI lacking behind
in %
Market volume in million m2
100
120
90
29%
28%
28%
26%
22%
23%
80
70
60
100
80
22%
22%
44
34
60
50
31
29
30
48
48
35
35
34
35
35
42
41
41
40
40
30
50%
50%
50%
62
51%
20
52
20
49
50
46
10
0
0
2010
2011
Other materials
2012
Clay tiles
Concrete tiles
Source: Based on management estimates
2013
2006 2007
2008
2009 2010 2011 2012
2013 2014P 2015P
New build
RMI
Small- and large-sized roof solutions for roof inclinations starting from 7°
Source: Grüne-Henze, October 2014
Page 8
… and no signs of a bubble
Range of orders in residential building
Completed flats in new built residential
houses per 1,000 inhabitants in Europe
Months
3,0
2,5
2,0
1,5
1,0
0,5
0,0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Source: lfo Institute
Norway
Switzerland
France
Finland
Austria
Poland
Belgium
Sweden
Total
Slovakia
Germany
Netherlands
Czech Republic
England
Denmark
Italy
Ireland
Portugal
Hungary
Spain
6.5
6.3
5.0
4.9
4.9
3.9
3.8
3.0
3.0
2.9
2.8
2.8
2.3
2.1
2.1
1.9
1.4
1.4
1.0
1.0
0
1
2
3
4
5
6
7
Source: Eurostat, ibr 1/2014
Page 9
• MEGATRENDS IN GERMAN RESIDENTIAL BUILDING
Page 10
Megatrends of the 21st century
Energy Efficiency
Architectural
style and requirements
Urbanisation
Digitalisation
Health
Demographic change
Page 11
• URBANISATION
Page 12
For the first time, completions of flats in multi-family
house will be higher than in 1&2 family houses in 2014
Completions of flats in 1&2 family houses vs.
flats in multi-family houses in residential buildings
Opportunities
• Multi-family with a
pitched roof tend to
have concrete tiles
rather than clay tiles
400
MFH
SFH
350
300
139
250
101
81
200
71
71
62
71
64
56
230
100
120
61
150
185
173
165
53
55
84
85
76
86
177
151
150
124
50
96
97
100
102
103
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014e
Challenges
• Trend to MFH leads to
lower demand as m2 of
roof/ m2 of living space
is significantly lower
• In the hinterland of big
cities more and more
flat roofs used
• More demanding
standard increase house
construction costs often
beyond affordability
for the middle class
Source: Statistical office 2014: Prognosis ZDB
Page 13
Urbanisation is a clearly visible trend …
Population change in Germany 2006–2011
Index 2006=100
102.0
101.5
101.0
100.5
100.0
99.5
99.0
98.5
98.0
97.5
97.0
2006
Big cities
2007
Rural areas
2008
Small cities
2009
2010
2011
Germany on average
Source: BBSR-housing market observations, Statistics of the population of the federal government and federal states
Page 14
...and offers opportunities in many regional markets.
It is key to be there!
Completed flats in new build residential buildings
per 1,000 inhabitants in the "Big Seven"
Munich
3.3
Frankfurt/Main
3.2
Cologne
Opportunities
• Still relatively low
numbers compared to
many European
countries (upside)
• Pockets of opportunities
beyond the big seven
(with pitched roofs)
2.7
Stuttgart
Challenges
• Lead generation
requires targeting new
customer groups:
mainly architects
2.2
1.8
Hamburg
Düsseldorf
1.3
Berlin
1.0
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Source: Statistical office 2014: Prognosis ZDB
Page 15
• ENERGY EFFICIENCY
Page 16
Energy Efficiency becomes more and more important
• 70% of today's energy consumption of households goes
into heating
• Further energy efficiency laws to be implemented step by
step. By 31/12/2020 all new buildings are nearly zeroenergy buildings
• Renovation ratio is currently <1% in Germany,
while 2% is considered required
• We have the right solutions for the new requirements
Opportunities
• Additional value/NS
potential can be
captured through
insulation offer and our
roofing know-how
• Requirements will lead
to increased demand
in renovation
Challenges
• We do not have own
production in insulation:
trading with low margin
and low differentiation
• Our product offer
is limited to the roof
and can be attacked
by insulation generalists,
who cover all
applications
Page 17
• BRAAS GERMANY’S EXCELLENT POSITION
IN THIS IMPORTANT MARKET
Page 18
Braas Germany – the No. 1 in pitched roofs
Nation-wide presence, close to the customer
Idstedt
Rahmstorf
Karstädt
Berlin
Rehfeld
• Seven concrete tile plants
• Four clay tile plants
• Six concrete tile
Heisterholz
Heyrothsberge
Dülmen
warehouses
Obergräfenhain
• Ten Sales regions
• One central Braas
Monheim
Oberursel
Heusenstamm
Hainstadt
Östringen
Central administration
Sales region office
Nuremberg/
Herzogenaurach
Mainburg
Altheim
customer center
• 929 employees
Braas customer service
Plant/warehouse for concrete tiles
Plant/warehouse for clay tiles
Warehouses
Page 19
Clear profile as leading system provider
Roofing know-how with system
• The leading provider of complete system-solutions
for pitched roofs in Germany
• High product quality and comprehensive services
• Dense distribution network with qualified specialist
advisors
• Sophisticated user-friendly systems
• For the highest demands for comfort and safety
of a roof
• Optimal fit of colours, functions and materials
• Material warranty period of thirty years on all roof
tiles, additional guarantee on frost resistance
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Most comprehensive service offer of the building
supplier industry with over fifty different services
Building
contractors, owners
& developers
14'000 roofers &
6'000 carpenters
4'000 Building
merchants
Marketing support
Support and
advise
Technical and
product information
50'000 architects
& planners
Logistic
services
Page 21
Leading market position
No. 1 in the German Pitched Roof Market
We are the only comprehensive manufacturer
and supplier of roof tiles and components
Concrete Tiles
Clay Tiles
Page 22
• LOW PITCH
Page 23
„Braas 7GRAD Dach“ – The Low Pitch Solution
Architecture
• Solution for the trend of modern architecture
with “flattish” roofs
System/Products
• Only system allowing the use of new and
innovative tiles on a pitch below 10°
• Complete system with concrete tiles and
components
Advantages
• Lower risk of water infiltrations compared to a
flat roof
• better sound poof compared to other materials
(especially metal)
• Lower initial and life cycle cost compared to
flat and metal roofs
Challenge
• Low adaptation rate as this innovative solution
is not (yet) in the code of practice of the
German Roofer Association
Page 24
Full Roof System – Know-how is key
Ridge & Hip
Fixings
Underlays
Roof outlets
Abutments
Safety
Insulation
Windows
Solar Fixings
Valleys
Snow
Gutters
Eaves
Equipment
Page 25
• ENERGY EFFICIENCY
Page 26
Right insulation means higher savings
Heating loss without insulation
Roof
12,120 kWh/a
Heating loss with insulation
75%
Roof
3,000 kWh/a
Saving
Windows
4,700 kWh/a
Windows
2,520 kWh/a
Walls
2,900 kWh/a
Walls
10,100 kWh/a
Soil/Basement
1,764 kWh/a
Soil/Basement
714 kWh/a
Source: Dena
Page 27
Full Roof System – Know-how is key
Ridge & Hip
Fixings
Underlays
Roof outlets
Abutments
Safety
Insulation
Windows
Solar Fixings
Valleys
Snow
Gutters
Eaves
Equipment
Page 28
'Protegon' – the active concrete tiles of the future
• Special infrared reflective pigments reduce heating up of the roof
surface
• 'Protegon' concrete tiles reflect up to 300% more infrared radiation
than conventional concrete and clay tiles
• Temperature of the tile body up to 10°C lower
• Reduction of the indoor temperature below the roof by up to 2°C
(dependent on roof structure)
Page 29
• FUTURE KEY PRIORITIES
Page 30
Four key priorities in Sales and Marketing in
Germany in 2015
Protect market share in concrete tiles
• Provide more intensive sales support towards developers, housing associations
and planners/architects
• Further improve perceived quality and price-value ratio for Braas concrete tiles
to justify price premium
• Start innovation initiatives for new state-of-the art concrete tile (Tegalit and FP)
Further selectively increase market share in clay tiles
• Introduce new clay products: Rubin 15V, Topas 11V, Opal and fittings
• Further improve merchant relationships
Components: continue to push for an increase in components sales
• Insulation with Clima comfort and new supplier for Divodämm
• Several further product improvements (e.g. Braas clip)
Further strengthen position of Braas as the #1 supplier in products and service
• Mid-term goal: develop best-in-class service level
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Die Nummer 1 am Dach in Deutschland!
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