ROCA
www.roca.es
1
Structure
Roca
Roca family 100%
Roca Sanitario
Roca
Roca Ceramica
Laufen
Ceramicas del Foix
Ceramica Belcaire
Europe
South America
Asia
Laufen
Jika (E-Eu)
Gala (ES)
Capea (AR)
Parryware (IN)
Johnson Pedder
Fayans (BG)
Inker (HR)
Sanitana (PT)
Celite (BR)
Johnson Suisse (MY)
Cesarom (RO)
Bellavista (ES)
Incepa (BR)
Stildux (ES)
Logasa (BR)
Pool-Spa (PL)
Celima (PE)
25%
Roca Kalevit (TR)
50%
Sanitarios Dominicanos
Ceramica del Caribe
31%
Ying (CN)
2
Product Offer:
Everything for the complete bathroom
• sanitary ware
• furniture
• bathtubs / shower trays
• shower enclosures
• whirlpools / multifunctionals
• taps
• accessories
• tiles
• Withdrawn from: heating and air-conditioning
3
Due to flat core markets and the “digestion” of
Laufen our growth stopped after 2000
2.000
1.489,0
1.592,0 1.594,0 1.602,0 1.564,0 1.660,0
Sales in m€
1.500
1.000
706,7
791,5
1996
1997
895,4
989,0
1998
1999
500
0
2000
2001
2002
2003
2004
2005 PF
-500
Roca
Laufen
Sanitana
Divestments 2005
Note: PF = Pro Forma
4
Acquistions 2006
Total
The true core of our Group, Roca Sanitario, has an
EBIT margin on industry benchmark level
900
20%
800
Sales in m€
700
18%
15,8%
14,4%
13,5%
16%
14%
600
12%
500
10%
400
8%
300
6%
200
4%
100
2%
0
0%
2002
Sales Roca Sanitario
Margin V&B Bath & Welln
2003
2004
EBIT Roca Sanitario
Margin Sanitec
5
2005
Margin Roca Sanitario
World-wide CSW production
6
Cost leader in CSW
Company
Average Cost Price CSW
Sanitec
20 €
Duravit
17 €
Villeroy & Boch
15 €
American Standard
13 €
Kohler
12 €
ROCA
12 €
7
N° 3 in the „world market“
Duravit
CISA
1,4%
Total value as basis:
5,2 billion Euro (ASP)
1,8%
Crane
2,9%
Inax
2,9%
Jacuzzi
3,0%
Villeroy & Boch
6,5%
Toto
8,3%
Sanitec
10,6%
Roca
11,0%
Kohler
14,2%
American Standard
0%
15,4%
2%
4%
6%
8%
10%
12%
Market shares CSW - World
8
14%
16%
18%
N° 3 in Europe
Jacuzzi Brands
Qualceram Shires
Eczasibasi
Kohler
Duravit
1,6%
Total value as basis:
2,2 billion Euro (ASP)
1,8%
2,1%
2,7%
3,5%
Villeroy & Boch
10,2%
14,7%
Roca
19,0%
American Standard
Sanitec
0%
21,4%
5%
10%
15%
Market shares CSW - Europe
9
20%
25%
Actual Strategy
10
Strategic Goal
To overtake Kohler and American Standard
to become
the world wide market leader
in the bathroom business
11
Actual Strategy: PRODUCTS
• concentration on the bathroom business
(divest all other product fields)
12
Actual Strategy: BRANDS
Main brand - world-wide - entire product spectrum
Positioning: Functionality and Quality
Main brand for central Europe
concentration on CSW
(but also bathtubs, shower trays and furniture)
Positioning: Design and Quality
Regional brands with high market share in their region
13
Actual Strategy: MARKETS
core markets (ES, PT, CH, AT)
• to hold the high market share in CSW at least constant and
to diversify in other bath product categories
target markets (FR, DE, NL, IT and UK)
• to enter in these markets via price-aggressive offers in the
project business (e.g. in F) or in the DIY (e.g. IT, F) or
• via acquisition of a company (e.g. in IT)
potential markets (East-Europe, Asia, Russia)
• build up production capacities in „coming or new“
markets or buy regional market positions by acquisition of
attractive regional brands
14
SWOT
(only Roca team)
15
Strengths
Management:
• International-minded
• Ability to handle big (Laufen) and parallel acquisitions
Brands
• high brand awareness in core markets as ES, PT, CH, AT
• strong regional brands in CZ, SK, BG as well as ES and PT
Product range
• strong position in the Professional segment in the core
markets
Markets
• one sales force selling CSW, furniture, taps, bathtubs
Production
• international production in low cost countries (cost-leader!)
• good allocation geographically
General
• independent company
• high profit margin and funds from divestments allow
further acquisitions / international product development and
communication investments
16
Weaknesses
Strengths
Management:
Management:
• International-minded
• Lack of focus outside CSW (e.g. loss of Ariston market
shares)
• Ability to handle big (Laufen) and parallel acquisitions
Brands
Brands
• high brand awareness in core markets as ES, PT, CH, AT
• strong regional brands in CZ, SK, BG as well as ES and PT
• brand ROCA is very product orientated, no lifestyle and
emotion for the products used in the showroom business
Product range
Product range
• strong position in the Profi segment in the core markets
• no international „design taste“ in the ROCA range
• weak position in premium segment and Wellness offer
Markets
• one sales force selling CSW, furniture, taps, bathtubs
Markets
• weak position in important CSW markets like DE, UK, I
Production
• international production in low cost countries (cost-leader!)
• good allocation geographically
General
• independent company
• high profit margin and funds from divestments allow
further acquisitions / international product development and
communication investments
17
Opportunities
Markets
• good attack position for high potential markets such as
East-Europe, USA and Asia
• attractive markets for high profit margins and good
volumes in Europe like DE, UK, IT, Benelux and
Scandinavia
Production
• use low-cost production facilities for Profi and
Mainstream segments
Distribution
• attractive for world-wide distributers because of ubiquity
Communication
• opportunity now to build brand in terms of
communication as basic abilities are solid
18
Opportunities
Threats
Markets
Competitors
• good attack position for high potential markets such as
East-Europe, USA and Asia
• strong final consumer brand V&B and Duravit
• strong position of AS and Kohler in USA and Asia
• attractive markets for high profit margins and good
volumes in Europe like DE, UK, IT, Benelux and
Scandinavia
Distribution
• Entry of international wholesale groups (e.g. Wolseley,
Saint Gobain) on Iberian market with own preferred
suppliers
Production
• use low-cost production facilities for Profi and
Mainstream segments
Legal
Distribution
• attractive for world-wide distribution because of ubiquity
Communication
• opportunity now to build brand in terms of
communication as basic abilities are solid.
19
• Legal action against trade policy of tying trade in Spain
(“Roquistas”)
Future Strategy
To be defined:
Strategic goals
Brands
Communication
Distribution & Logistics
Strategic Alliances
20