1 1 avance by opw portfolio overview and sales approach
TRANSCRIPT
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AVANCE BY OPW
Portfolio Overview and Sales Approach
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AGENDA
1. Market & Competitor Overview
2. Avance Story & Portfolio
3. Avance Sales Approach
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DISPENSER HANGING HARDWARE - MARKET INFORMATION
OPW is the No. 1 nozzle manufacturer globally• Leadership position in almost all markets• Nozzle production: approx. 1.000.000 nozzles p.a.
Key Competitor in the EMEA Market – Elaflex• Europe – Elaflex in a quasi-monopolistic position• Developed over decades due to limited competition
Motivation for Avance Project• Growth opportunity• Attack European monopoly• Win market share & new customers• New Product Development
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EUROPEAN MARKET
Outlook & Trends• Market Size stable • No. of unmanned stations to increase (Scandinavia and
France)
• Growth factor: trend towards Vapor Recovery
• Quasi-monopoly contested by OPW and Franklin (?)
Number of Stations 137 k stations
Total Nozzle Population (VR&CN) 2.500 k units
VR Nozzle Population 1,100 k units
CN Nozzle Population 1.400 k units
Actual VR saturation 70 %
VR -> VR replacement market 85 k units 10.1 M €
CN -> CN replacement market 146 k units 7.3 M €
CN -> VR conversion market 58 k units 7.0 M €
Total Replacement Market 289 k units 24.4 M €
OEM Market 150 k units 10.1 M €
Total Nozzle Market 439 k units 34.5 M €
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ELAFLEX Update
Headquarter: Hamburg, Germany Employees: ~350 Sales: ~$190M
• Product Split40% Conv. Fueling components20% Rubber Fuel Hose20% Airline Fueling components20% Unconv. Fueling components
Operating Margin: high 20s Sole marketing partner for Continental fuel hose AdBlue/DEF private label agreement with OPW in ’10 Perceived high quality products Un-contested HH market position in Europe until 2012 Response to Avance: Cutting Prices & Going Direct
• Geographical Mix65%Europe15%Asia 15%Other Emerging5%USA & Latin America
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AGENDA
1. Market & Competitor Overview
2. Avance Story & Portfolio
3. Avance Sales Approach
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AVANCE Milestones
Field testing started in the US in early 2010
European design validation started in early 2011
ATEX/EN13012 & TÜV in 2011
04/2012 - AVANCE Nozzle launched
09/2012 - Avance Nozzle production line commissined in CZ
08/2013 - Avance Hose assembly line commissioned in CZ
Today:
Positive feedback from pilot installation (70+ customers),Large scale opportunities in the pipeline (1000 – 5000 units)
Sales Focus on Fuel Retailers proved to be door-opening!
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AVANCE Milestones
Avance Nozzle Cell
224 units/day or
1120 units/week
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AVANCE Milestones
Avance Hose Cell
96 units/day or
480 units/week
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AVANCE PILOT INSTALLATIONS
Positive feedback• Wayne: Avance quoted in KNPC Tender (Kuwait)
• FTC/Haahr: Recently secured order for 480 nozzles
• CEPSA: Opening dispenser specs
• MOL: Requesting quote for Avance-equipped disp.
• SHELL & TOTAL: Requesting pilot installations
• Esso/Exxon: Avance pilots confirmed
Positive perceptions• Avance Nozzle higher flow rates, less dripping,
smooth opening and closing, easy to operate,
modern/futuristic look, integrated message center,
expected longer lifetime
• Avance Hose equivalent, larger ID for VR hoses a plus
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AVANCE Approach
Starting Point• Extensive research & customer clinics• European consumer focus group sessions• Identification of needs per stakeholder group• Create the Next Generation Nozzle in terms of
- Design Integrity (cleaner, durable,..)- Ergonomics & Style
Comfortable to the hand
Uncomfortable to the hand
Appealingdesign/look
Unappealingdesign/look
K AVANCE Nozzle
P Other OPWNozzle Designs
L
L P
L L
P
P
K
N
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CLEANER, SAFER, GLOBAL
Closing with the Flow
Compliance with ATEX/EN13012 & UL
Cleaner / environmental protection
Safer / pretecting the consumer
Global / ATEX/EN13012 & UL → Global Nozzle
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TECHNICAL IMPROVEMENTS
Easy to open• Patented dual poppet design
Soft closing / low line shock• Patented DashPot feature
Equivalent flow & VR performance• Easy replace of ZVA in the field
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AVANCE SAFETYCAP (ASC)
Avance SafetyCap (ASC)
• Standard feature of the Avance nozzle
• Can be deselected
• ASC enables hold open option
(talk to local authorities)
Increased consumer safety and environmental protection
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Extreme Cold & Hot Weather Conditions
Superior for extreme cold & hot weather conditions
• Standard temperature range : -29 C up to +55 C
ZVA : -20 C up to +55 C
• Cold weather seal package : down to -54 C
ZVA : down to -40 C
• Closing with the flow overcomes
the leakage issue caused by
thermal expansion of fuel
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DURABILITY
Superior Durability:
> 1 000 000 automated shut-off cycles!
Avance Nozzle performance in lab testing
• VR: 1 400 000 cycles on average
• CN: 1 600 000 cycles on average
• ZVA did not reach 300 000 cycles
ATEX: no minimum specified
UL: min. 100 000 automated shut-off cycles
OPW considers any form of leakage a failure
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DESIGN & COLOR CUSTOMIZATION
Avance Message Center
• Grade identification
• Company logo
• Anything else?
• Message to customers
integrated in the AVANCE Nozzle
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AVANCE HOSE
Developed by Goodyear/Veyance based on OPW requirements
Intl. standard threat sizes Inner diameter
Vapor recovery: 22/8 mm Conventional: 16 / 19 / 22 / 25 mm
Temperature range: -40 C up to +55 C Working pressure: 16 bar Material: nitrile, synthetic rubber,
textile re-enforcement,
VR inner tubing: nylon Standards: EN 1360, EN 13483
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AVANCE POD SUMMARY
1. Cleaner Closing with the flow
2. Safer Avance SafetyCap (ASC),protecting consumers & environment
3. Global ATEX & TÜV & UL
4. Durable 1.000.000+ cycles, extreme weather
5. Op. Range +55 C down to -29 C or -54 C (cold temp.)
6. Protecting Low line shock supports lifetime of disp. comp.
7. Easier Soft to open and easy to handle
8. Stylish New, modern and color customizable,based on repeat consumer involvement,
plus integrated Message Center
9. Proven Extensive field & inhouse testing
10. Compatible Interchangable with installed base
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COMING NEXT - PRODUCT DEVELOPMENT PIPELINE
Target Launch Date - February 2014
Avance High Flow Nozzle (up to 140 l/min.)
Avance single-plane swivel (std. & high flow)
Target Launch Date - Q2/2014
Avance VR Safety Break
Avance Swivel Safety Break (std. flow)
Avance Swivel Safety Break (high flow)
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AGENDA
1. Market & Competitor Overview
2. Avance Story & Portfolio
3. Avance Sales Approach
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SALES APPROACH
FOCUS ON FUEL RETAILERS• Build on positive market feedback• Identify and convert early adopters (fuel retailers)
based on the existing portfolio• Secure repeat orders from satisfied customers
FR = FUEL RETAILERSC = Service CompanyOEM = Dispenser Manufacturer
OEM SCFR
KPSFibrelite
OPW
Initially
FR SCOEM
KPSFibrelite
OPW
Su
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SC
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wit
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R r
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Su
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SALE !
TODAY
FUEL RETAILER demand for
Avance nozzle made WAYNE
accepted Avance without safety break for the KNPC Tender.
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SALES APPROACH
FOCUS ON FUEL RETAILERS
• First Mover Offer (OPW investment)
Limited to a small number of Fuel Retailer target accountswho meet the profile of MOL/Hungry:
- intimacy with key decision-makers, - open for new technology,- exercise power on dispenser OEMs.
• GOAL:
Generate strong pull from the Fuel Retailer Segment!- OEM responsiveness to Fuel Retailer requests- OPW to give the Fuel Retailer decision-maker peace of mind:
- replacements in case of non-performance- free training and high service level commitments
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QUESTIONS / COMMENTS ?
