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Other Specialty Products Gary Gessel / President of Milgard Windows

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Other Specialty Products Gary Gessel / President of Milgard Windows

Agenda

The Business Today

Growth Plan

2

Other Specialty Products Segment Overview

3

Masco Corp. (Breakdown of 2014 Revenue)

Rest of

Masco

Other

Specialty

Products

Segment

8% 92%

Revenue $0.7B

Margin as Adjusted* 6.8%

% of Masco EBIT as Adjusted* 6%

% Revenue outside N. America 26%

12/31/2014

Currency Exposure USD / GBP

Commodity Exposure TiO2 / Resins

/ Glass

% Repair & Remodel Sales 74%

*Operating profit, as adjusted excludes $1M of rationalization charges for Other Specialty Products and $63M of net

rationalization charges for Masco.

Our Businesses are Market Leaders

4

Record of Growth

$4

$24

$41

$48

2011 2012 2013 2014

5

Adjusted Operating Profit ($M)

129% CAGR

*Excludes business rationalization charges for 2014, 2013, 2012, and 2011 of $1 million, $6 million, $1 million and $31 million, respectively. Excludes

2012 warranty expense and other intangible asset impairment charge of $12 million and $42 million, respectively. Excludes 2011 goodwill and other

intangible asset impairment charge of $374 million.

Agenda

The Business Today

Growth Plan

6

• Pursue geographic expansion with Milgard

• Extend Milgard’s leadership position in Western U.S.

• Extend UK Window Group’s leadership position

Segment Strategic Priorities

7

1

2

3

8

Western U.S. Window

& Patio Door Industry

$1.2B

Strong Revenue Growth

vs. Industry (2011 – 2017 CAGR)

7.5%

12%

Industry Milgard

Milgard

S T R A T E G Y # 1 E X T E N D M I L G A R D ’ S L E A D E R S H I P P O S I T I O N I N W E S T E R N U S

Milgard’s Leadership Position Provides Strong Platform for Growth

Source: Bain Consulting and Company Estimates

#1

9 Source: Bain Consulting and Company Estimates

California Washington Colorado Oregon Arizona SmallerWestern States*

*Smaller Western States include MT, HI, AL, UT, WY, NV, NM

2.4M

.6M .6M

.4M .4M

.8M

Milgard share

Total

Addressable

Units

Breakdown of Milgard

Addressable Units

S T R A T E G Y # 1 E X T E N D M I L G A R D ’ S L E A D E R S H I P P O S I T I O N I N W E S T E R N U S

Despite Leadership Position Significant Opportunities Exist in Underpenetrated Geographies

10

Trusted Partner Innovation Best Warranty Customer Service

S T R A T E G Y # 1 E X T E N D M I L G A R D ’ S L E A D E R S H I P P O S I T I O N I N W E S T E R N U S

Milgard’s Value Proposition is a Differentiator for Window Dealers

SmartTouch®

Examples of New Products

11

Essence Wood Windows & Doors – “Re-imagined”

Premium Painted Vinyl

Moving Glass Wall Systems

Vinyl Swing Door

New Products Last 3 Years

as % of 2014 Sales

14%

S T R A T E G Y # 1 E X T E N D M I L G A R D ’ S L E A D E R S H I P P O S I T I O N I N W E S T E R N U S

Innovation will Continue to be a Driver of Success

12

Estimated

Sales Opportunity:

~$150-$185M

over the next

three years

S T R A T E G Y # 1 E X T E N D M I L G A R D ’ S L E A D E R S H I P P O S I T I O N I N W E S T E R N U S

Key Execution Initiatives

+

+

Grow in underpenetrated geographies

Leverage Milgard’s value proposition

and innovation

Target key dealers

13

First Target: Texas

Western U.S.

Texas

S T R A T E G Y # 2 P U R S U E G E O G R A P H I C E X P A N S I O N I N T E X A S

Texas Represents a Compelling Organic Growth Opportunity

1.3M Addressable Window Units

Source: Bain Consulting and Company Estimates

Estimated

Sales Opportunity:

~$10-$15M

over the next

three years

+

+

Build manufacturing in Texas

Leverage innovation

Grow Texas dealer base

14

S T R A T E G Y # 2 P U R S U E G E O G R A P H I C E X P A N S I O N

Key Execution Initiatives

15

83%

Masco’s Leading Position in UK Vinyl / Composite

17%

2014 Palmer Market Report

S T R A T E G Y # 3 E X T E N D U K W I N D O W G R O U P ’ S L E A D E R S H I P P O S I T I O N

Masco’s UK Window Group Holds a Leadership Position in the Most Attractive Segment of the UK Window Market

6.9M addressable window units

All other

competitors #1

Masco

16

S T R A T E G Y # 3 E X T E N D U K W I N D O W G R O U P ’ S L E A D E R S H I P P O S I T I O N

Key Execution Initiatives

Estimated

Sales Opportunity:

~$40-$50M

over the next

three years

+

+

Grow the core

Accelerate innovation

Grow in new sales channels

Other Specialty Products 3 Year Outlook

17

The Segment is expected to generate 10-13% operating margins in 2017

with sales growing at 9-11% CAGR during the next 3 years

2014 OtherSpecialty Products

Net Sales

2017 OtherSpecialty Products

Net Sales

$701M

$150M-$185M $40M-$50M

$10M-$15M

~$905M -

~$955M

Core Sales Growth

Milgard Geographic Expansion

UKWG

I N S U M M A R Y

Other Specialty Products is a Growth Segment for Masco

18

• Milgard Windows – leader in most attractive segment of

the Western US window industry – compelling opportunities for growth

• Milgard uniquely positioned to deliver profitable growth – by leveraging its strong brand, value proposition and innovation

• Masco’s UK Window Group is the leader in UK vinyl and

composite window market – with clear strategies to leverage its leadership position for

greater growth