Strategic Planning PresentationEnterprise IrelandFinance 4 Growth seminar, Cork,10th March 2015

Company Overview

• HQ in Cork with distribution hubs in Dublin & UK.

• 3 Divisions – Chemicals, Paint and Food Ingredients.

• €30M Revenue.

• Handling 1000’s of premium products.

• Adding value to sourcing, manufacturing and distribution.

• World Class innovators.

Alamari AvTT2 Project

Carbon Group

Our Capabilities

• FACILITIES to blend and package chemical formulations to customers specifications.

• ON-SITE LABORATORY for QC testing, QA, trials and product development, full batch traceability from raw material to finished goods.

• CUSTOMISED BLENDING of liquids & powder formulations for the Food, Pharmaceutical & Industrial sectors.

• Flexible MANUFACTURING SYSTEMS using best in class LEAN practices and QMS.

• PROCESS EXCELLENCE with ISO Accreditation, REACH Compliant, Responsible Care, HACCP, SQAS & ESAD & ADR.

Global Sourcing

• Partnership with an INTERNATIONAL NETWORK of leading industry manufacturing and product suppliers.

• SUPPLY CHAIN MANAGEMENT providing technical products, R&D and innovative technologies.

• DIVERSE RANGE of premium products sourced across our Chemicals, Food Ingredients and Paint & Equipment divisions .

Innovative Solutions

• By working with you we deliver INTELLIGENT SOLUTIONSthrough; project & site surveys, product evaluations, technical discussions, recommendation and commissioning.

• EXCELLENT RELATIONSHIPS with International partners, Third Level institutes and Government agencies.

Customer Focus

• We are committed to providing a superior CUSTOMEREXPERIENCE across all aspects of our business.

• Our friendly, proactive and knowledgeable staff work inPARTNERSHIP WITH YOU to meet your product, process andbusiness needs.

• Our reputation in the industry is of RELIABILITY, TRUST andalways supporting our customers.

• Industrial & Water Treatment Chemicals.

• Laboratory Products & Reagents.

• Innovative Cleaning Products.

• Contract Manufacturing.

• Formulated Detergents.

• Chemical Management.• Agricultural Products.• Speciality Chemicals.• Packaging.• Solvents.

Chemicals

• Commodity Ingredients.

• Dairy Antibiotic Testing.

• Functional Ingredients.

• Speciality Ingredients.

• Preservatives.

• Flavours.• Salt.

Food Ingredients

MARKETS WE SERVE:

Original Equipment Manufactures.

Furniture.

Buildings & Infrastructure.

Agriculture & Construction Equipment.

General Industry.Transportation.

Paint

Strategic Planning process (to date)

Question: Why do we need a Strategy?

0

10000

20000

30000

40000

50000

60000

1997 2000 2003 2005 2006 2008

Carbon Group Sales Growth 1997 - 2008

Answer: Because we didn’t see it coming

0

10000

20000

30000

40000

50000

60000

1997 2000 2003 2005 2006 2008 2009

€6.7M fall in Turnover (22%)Coatings Division fell 46%

Company overview

CHEMICALS FOOD INGREDIENTS

Industrial Chemicals Functional Ingredients

Laboratory Reagents Commodity

Pharma Chemicals Antibiotic Testing

Agricultural Products Contract Manufacturing

Contract Manufacturing

Sterile/Cleanroom

By working beyond the gate of our customers, we understand their needs, bring them intelligent solutions, and provide them with real value & support to improve their business. Intelligent solutions. Delivered.

PAINT & EQUIPMENT

Powder Coatings

Protective Coatings

Auto Refinish

Industrial Paints

Application Equipment

Wood Finish

80%

20%

54EMPLOYEES

EST

1967

MANUFACTURING(Value Added)

DISTRIBUTION(Global Technology/

Local Expertise)

Where we were in 2010

Strategic Focus Areas

2011 – 2015 Transform Strategic Plan

3 pillars of the strategy Strategic Focus Areas

Organisational - Staff StructureExcellence - Culture & Communications

- Training, HR

Process Excellence - Bal. Score card KPI’s & Benchmarking- New ERP- LEAN Business systems

Innovation - Innovation Culture- New Product development process- Next generation products

Carbon Group Strategic plan delivery

Strategic pillars Strategic focus area projects H1 H2 H1 H2 H1 H2 H1 H2 H1 H2

Carbon Group Strategic plan

Organisational Excellence

- Divisionalise the organisation & change the structure

- Culture change I II

- HR Strategy adoption & structured Performance mgmt.

- Branding (I, II & III)

Process Excellence

- Office 365 implementation

- KPI Balance score card introduction

- Lean Start (introduction)

- Lean Plus & ERP process mapping

- ERP selection

- ERP implementation (Phase I, II) I II

Innovation

- Adhoc new product introduction

Innovation process set up (Stage gate process)

EI R&D project (small) - Innovation project mgmt.

Mid term Strategic review

- Assess performance to date (in all things f inancial and non financial terms)

- Decide w hat w e keep and w hat w e loose

- Make the change

2011 2012 2013 2014 2015

5 year business plan

Planning framework

H1 H2 H1 H2 H1 H2 H1 H2 H1 H2

Annual Group Operations plan

Commercial Division plans

- Paint

- Chemicals

- Food

Support Divisions

Operations

Purchasing

Finance

Paint division sales personnel budgets &

targets

1 year plan 1 year plan 1 year plan

1 year plan 1 year plan 1 year plan 1 year plan 1 year plan

1 year plan 1 year plan 1 year plan 1 year plan 1 year plan

1 year plan 1 year plan 1 year plan 1 year plan 1 year plan

Budget / Performance

objectives

Budget / Performance

objectives

Budget / Performance

objectives

Budget / Performance

objectives

Budget / Performance

objectives

1 year plan 1 year plan 1 year plan 1 year plan 1 year plan

1 year plan 1 year plan 1 year plan 1 year plan 1 year plan

1 year plan 1 year plan 1 year plan 1 year plan 1 year plan

2011 2012 2013 2014 2015

5 year business plan

Carbon Group 2010 – 2015 Mid Term review

Mid term review

Measures Action Outcome

- Closed Belfast location

- Sold tw o technology groupings of the Coatings division

- Turnover fell, costs fell further, Profitability improved

- Ceased investing in f ield sales staff not achieving sales

plans and targets

2)

Personnel performance review (at all levels) of the

business - Get the right people on the bus and get

them sitting in the right seats

Follow the HR protocols & know w hat you

w ant to achieve & be honest to staff anf to

the business

We w ent from 55 staff up to 60 staff, back dow n to 45

staff (at all levels of the organisation) w ithout issue in an

honest and fair manner

3)

If SFA projects not progressing on schedule or of

suff icent benefit

Close the projects dow n, w asting effort is

demotivational to everyone involved.

You use limited resources on projects that are of greater

benefit to the organisation

Compare actual f inancial Performance to target

/milestone performance expectation - (not to prior

years, an improvement on past mediocrity is not

acceptable)

Agree a course of action & do it1)

Annual Planning Timeframe June

Jul

Aug

Sept

Oct

Nov

Dec

Jan

Feb Mar

Group Ops plan

Current Financial / Business Forecasting model

- Issue Q3 YTD sales reports & 2015 forecast templates to sales divisions for Budget preparation

- Issue the Q3 Financial & SFA briefing pack to Senior Mgmt & non execs

- YTD Q3 Financial review & SFA project review meeting

- Draft the Financial "Current business" annual budget & wait for the Group Ops plan

- Redraft the budget after review of Group, Commercial & Ops business plans

- Finalise the Budget at SRM Budget review meeting

- Quarterly Strategic Review Meetings (Actual performance V's planned)

- Financial Performance (Group & Divisional)

- Business plan performance (Commercial & Support)

- SFA project review

Q3 Q4 Q1

The Current Annual financial Planning cycle

Annual Planning Timeframe June

Jul

Aug

Sept

Oct

Nov

Dec

Jan

Feb Mar

Group Ops plan

Current Financial / Business Forecasting model

- Issue Q3 YTD sales reports & 2015 forecast templates to sales divisions for Budget preparation

- Issue the Q3 Financial & SFA briefing pack to Senior Mgmt & non execs

- YTD Q3 Financial review & SFA project review meeting

- Draft the Financial "Current business" annual budget & wait for the Group Ops plan

- Redraft the budget after review of Group, Commercial & Ops business plans

- Finalise the Budget at SRM Budget review meeting

- Quarterly Strategic Review Meetings (Actual performance V's planned)

- Financial Performance (Group & Divisional)

- Business plan performance (Commercial & Support)

- SFA project review

Q3 Q4 Q1

By the time the budget is agreed

we only have 11 months to earn

deliver it !!

Suggested Financial Planning changes

• Introduce rolling forecasts per Quarter- In a business with very stable / repeat business

patterns. Why do we wait till the back end of the year to forecast for the next year.

• Introduce product / customer pipeline management (CRM)

- We have very high levels of repeat business but no sight of new potential products or customers or a measure of the opportunity this presents.

• Any other ideas??

THANK YOU