Photographic Division Morning Presentation Welcome! - The Vitec Group plc 11 May 2017
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The Vitec Group plc Photographic Division Morning Presentation 11 May 2017 Welcome!
The Vitec Group plc
Important notice
Forward-looking statements
This presentation contains forward-looking statements with respect to the financial condition, performance, position, strategy, results and plans of The Vitec Group plc (the “Group”
or the “Company”) based on Management’s current expectations or beliefs as well as assumptions about future events. These forward-looking statements are not guarantees of
future performance. Undue reliance should not be placed on forward-looking statements because, by their very nature, they are subject to known and unknown risks and
uncertainties and can be affected by other factors that could cause actual results, and the Group’s plans and objectives, to differ materially from those expressed or implied in the
forward-looking statements. The Company undertakes no obligation to publically revise or update any forward-looking statements or adjust them for future events or developments.
Nothing in this presentation should be construed as a profit forecast.
The information in this presentation does not constitute an offer to sell or an invitation to buy shares in the Company in any jurisdiction or an invitation or inducement to engage in
any other investment activities. The release or publication of this presentation in certain jurisdictions may be restricted by law. Persons who are not resident in the United Kingdom
or who are subject to other jurisdictions should inform themselves of, and observe, any applicable requirements.
This presentation contains brands and products that are protected in accordance with applicable copyright, trademark and patent laws by virtue of their registration.
Page 2
The Vitec Group plc
The Vitec Group plc – Photographic Division
May 11th – programme
This morning – Manufacturing
1. Brief introduction
2. Overview of manufacturing facilities
3. Plant visit
4. Travel to Divisional Offices
This afternoon – Strategy
1. Office tour
2. Working lunch (buffet)
3. Strategy and product presentation
4. Travel to airport
Page 3
The Vitec Group plc
Photographic Division: facts and figures
Leading, premier brands
£151.4 million
£20.5 million*
Revenue
Adj. Op.
Profit
Cash Flow
from Op.
Activities 13.5%
£18.6 million Adj. Op.
Margin
*Before restructuring costs and charges associated with acquisition of businesses.
Page 4
The Vitec Group plc
What we do: the cameras that we accessorise
Digital System Cameras (DSCs)
Portable Video Medium format DSLR Camera Compact System Compact
Camera Digital Camera Camera Digital Camera
Smartphone Drone VR Action Camera
Page 5
The Vitec Group plc
What we do: premium camera accessories
Photo Supports Video Supports Multi Media On Camera LEDs
Lighting Lighting Filters Smartphone Camera
Controls Accessories Accessories Accessories
Page 6
The Vitec Group plc
Make vs Buy
Turnover 2016
Buy - Bags 11%
Buy - Supports 14%
Buy - Others 6%
Make - Supports 69%
80% of Vitec Photographic supports are made in Italy
Page 7
The Vitec Group plc
Welcome to Feltre
Page 8
The Vitec Group plc
Feltre production output 2016 (% of total production value)
Accessories&
Tripods Heads Lighting
Spare parts
MANFROTTO 35% 30% 12% 3%
GITZO 8% 4% 1%
AVENGER 7%
% on tot Prod.Val 43% 34% 19% 4%
We are the largest manufacturer of branded supports in the world and 4 x larger than the No.2
Page 9
The Vitec Group plc
Feltre production site: key facts
Established in 1986
30,000 square metres
(manufacturing & services)
400 employees
Page 10The Vitec Group plc
Feltre manufacturing footprint and production flows
F6 – Castings machining and painting
F5 – Tubes machining and gluing
F7 – Assembly (Manfrotto/Avenger tripods – stands)
F1 – Assembly (Gitzo and all Heads)
F3 – Maintenance and canteen
F2 – Moulds engineering and making
F4 – Prototypes and Testing
Page 11The Vitec Group plc
Feltre competitive arena
Ashby-de-la-Zouch – UK Feltre – Italy Ningbo – China
Foshan – China
Zhongshan – China
Cartago – Costa Rica
Baibian
KingHome
Vitec Group leads the market, without producing in China Page 12The Vitec Group plc
Why “MADE IN ITALY” is a distinct competitive advantage
MADE IN ITALY COMMANDS GREATER VALUE:
Synonymous with high performance engineering and superior design
Strong emotional appeal, particularly with APAC consumers
INNOVATION AND DESIGN:
60 yrs of expertise + emerging talent pool + adjacent industrial districts
A strong platform to lead future innovation
COST EFFECTIVE:
All supports that retail @ € 100+ are produced more efficiently in Italy
Labour is a low percentage of total cost of goods
Efficient supply chain:
- Raw materials and components
- Italy is central hub to our largest market
“MADE IN ITALY” drives higher sales and margin
Page 13The Vitec Group plc
Feltre competitiveness – leading by innovation and design
An award winning facility
Page 14The Vitec Group plc
Manfrotto Nitrotech
Page 15The Vitec Group plc
Vitec competitiveness beyond innovation and design
Focus on improving Quality and Service as primary drivers of cost effectiveness
Quality
Health & Safety
Customer
satisfaction
Costs Service
H&S is a prerequisite to any improvement activity Page 16The Vitec Group plc
Feltre operational excellence – based on operational best practice
5S
Just in Time
Kanban
Value Stream Mapping
Flow
SMED (Single Minute Exchange of Die)
FMEA (Failure Mode and Effect Analysis)
Multi-skills
PDCA (Plan Do Check Act )
Zero Defects
Page 17The Vitec Group plc
Feltre competitiveness – Lean – 190/055 Line
Before 190 Line After
055 Line
190 Line
190 Tripod assembly time improved by 40% +
Page 18The Vitec Group plc
Feltre competitiveness – automation
1 alu tube 1 carbon tube
every 4 secs every 10 secs
1 collar worked
1 painted frame every 25 secs
every 45 secs
In Italy it takes seconds whereas in China it takes minutes
Page 19The Vitec Group plc
Feltre competitiveness – people
Lean Culture
Value Stream Teams
Multi-skilled
Continuous Improvement
Empowerment
Advanced Technical
Knowledge
A highly trained and flexible team
Page 20The Vitec Group plc
Feltre competitiveness: 2013-2016 results achieved
What 2013 2016
Feltre efficiency +9.1%
(net of inflation)
Customer 84% 96%
Service Level
Photographic -23%
Inventory Days
Scrap -39%
Production -15%
footprint
All Operational KPIs have improved in 2013 – 2016 timeframe
Page 21The Vitec Group plc
Feltre competitiveness – results achieved
ISO 9001 (2015 ver) – ISO 14001 (2015 ver) – OHSAS 1800.1 Outstanding Safety KPIs
Page 22The Vitec Group plc
Feltre competitiveness – next steps
Vitec Competitive Advantages Continuous Improvement
Safety Industry 4.0
Connected Automation and Complexity Control
Innovation
Precision
Quality
Service
Cost
Grants and Fiscal Relief
Page 23The Vitec Group plc
Befree range – 4.0 pilot project
More features, new 4.0 process = higher quality @ competitive costs
Page 24The Vitec Group plc
New F5 layout with new tubes machine and 5 new Lathe Machines
F5
New Alu Tubes
Machining automation
New Lathe Machining
New 4.0 layout in place by September 2017
Page 25The Vitec Group plc
Feltre Facilities Tour Itinerary
F1 - Assembly (Gitzo and all Heads)
Focus on Lean
F5 - Tubes machining and gear
Focus on Automation
F7 - Assembly (Manfrotto/Avenger tripods –
stands)
Focus on Lean and People
F6 – Castings machining and painting
Focus on Automation
Page 26The Vitec Group plc
Safety Rules
Page 27The Vitec Group plc Bridge House Heron Square Richmond TW9 1EN UK Telephone: +44 (0)20 8332 4600 Fax: +44 (0)20 8948 8277 www.vitecgroup.com
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