coatings summit paris 2019 · eco labeled class 1 –scrub resistance 21% tio2 content 24% vat...
TRANSCRIPT
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COATINGS SUMMITΠΑΡΙΣΙ2019
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FIGHTING OFF A TRIPLE THREAT
Against all odds
by
Αρμόδιος Yannidis
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DECORATIVE PAINTS
Est. 1932
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Presence in SouthEastΕυρώπη
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How was your Company
10 yearsago?
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New FactoryMarch 2008
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Σεπτέμβριος2008
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SHRINKINGOFOUR MARKET
Threat
#1
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0%
20%
40%
60%
80%
100%
120%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
GDP Constr_Volume Paint 9 Index
GDP_Const_Paint
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New ConstructionPermits Surface
2007 41.790 16.910.545
2008 34.021 13.664.965
2009 27.447 9.833.690
2010 23.380 7.987.904
2011 15.114 4.464.072
2012 9.066 2.641.200
2013 5.675 1.688.735
2014 4.620 1.435.481
2015 4.618 1.301.613
2016 4.305 1.286.560
2017 4.930 1.685.326
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Tourism
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Deco Market Size195 M€
11 producers > 3M€
Only 1 Multinational (Akzo Nobel’s Vivechrom)
50+ garage paint producers
70% of sales from top 5
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Market Structure
3.000 points of sale
Only 2 DIY chains with 20 stores – sell 8% of paint
Majority: Mom & Pap’s shop
2-4 tinters per shop (max 7)
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Competition becomes
fierceDuring the years of the
κρίσης NO paint
company has gone
bankrupt, resumed
operations or been
sold!!!
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Low Retail Prices 29,50€
10 liters premium paint
ECO labeled
Class 1 – scrub resistance
21% TiO2 content
24% VAT included
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VITEXDEBT 30 M€ investment = debt and
depreciation
NO GO: assets divestment
NO: export market in κρίσης also
HIGH: cost of money
Threat
#2
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0
10000
20000
30000
40000
50000
60000
70000
2007 2008 2009 2010 2011 2012 2013
YB Sales YB Loans
Sales vs Debt
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FAMILYCLASH
The company had 5 shareholders
Management was conducted by 4 of the 5
Strong family management culture with clans and πόλιτικς.
Threat
#3
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Power balanceMarch 2009 to September 2009
A B C D E
September 2009 to July 2012
A B C D E
July 2012 to October 2017
A B C D E
Period - March 2009 to July 2012 HAD impact on the company management. NO impact from July 2012
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PERIOD2008 -2012
Fast, efficient and sufficient actions needed
to be taken in parallel for all the problems
WITHOUT losing the balance, the
στρατηγικό focus and the control!!!
All of the problems where interconnected!!!
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Sometimes
you must
do what is
required.-
Sometimes doing your best is not
good enough.
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Divestment• Sale of Πόλυμερ Business• Shut down of EPS (expandable polystyrene) production. • Liquidation of Asphalt membranes production company• MBO of Automotive Refinishing commercial business
Four NON
strategic BU’s
terminated
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Actions• Wages reduction /4-day work σχήμα• Cut throat cash flow • Right sizing projects• Customers scrutiny• Expenses reduction• Stock level reduction• JIT stocks mngmnt• NO DIVIDENDS• FAMILY… Fired! 0
50
100
150
200
250
300
350
400
450
500
2007 2008 2009 2010 2011 2012
YB Headcount
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Workforce• Selection for LAYOFFS based on merit• Justified and transparent employment terminations• CLANS AND POLITICS FINISHED• Newcomers evaluated on χαρακτήρα and accountability
Opportunity for
culture change
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INFLECTION POINT 2012• In 2012 we realized we needed a POSITIVE ψυχολογικό
SHOCK!
• Since 2012 the paints market is neither shrinking nor
growing – relatively FLAT
• In VITEX we decided to outperform and GROW more than
every single competitor every single year!
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60%
70%
80%
90%
100%
110%
120%
130%
140%
150%
160%
2012 2013 2014 2015 2016 2017 2018
Vitex BS Vivechrom Vechro Kraft Chrotex Paint 9 Index
Vivechrom / Akzo 27% m.s.
Average
Vechro 9% m.s.
Kraft 9% m.s.
Chrotex 7% m.s.
Top 5 GrowthVitex 19% Market.Share
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0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
40.000
2012 2013 2014 2015 2016 2017 2018
YB Loans YB Sales
Sales vs Debt
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Resolved the family conflict, strengthened and simplified corporate governance.
Shares Transaction October 2017
A B C D
July 2012 to October 2017
A B C D E
Power balance
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#1 Independent paint producer in Greece with the LARGEST & MOST MODERN factory
Today we are:
47% sales growth in 6 years
Sales in 2018 of € 37.600.000
19% Market Share
Employers of 232 people
1.700 owned tinters in Points Of Sale
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Factory• 26.000.000 liters
capacity• 30M€ investment
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Factory750 KW
• ZERO waste process
• ZERO accidents policy
• Net ZERO energy
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EXCELLENCE*αριστεία
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EXCELLENCE
POLITICS are for politicians…we are humble PAINT producers…
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EXCELLENCE
We have changed ourMANAGEMENT MODEL into a
balanced hybrid between FAMILYand PRO
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EXCELLENCE
Through continuous improvement we redesign our functions and processes with a
sole target: TO ADD MORE VALUE
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92%of paint is sold:
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Family / Personal approachF2F
F2F
• Custom made commercial policy• Sales rep is fully empowered• Customer knows all the ιεραρχεία• ALL employees visit customers• CEO has visited >1000 retailers &
hotels
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Supportive approachF2F
F2F
• Big projects support• Flexible payment terms• Higher stocks at our side• Same or next day delivery• 6 pack instead of 12 pack
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MARKETING• SHADES Experts• Raise our share of VOICE• Increase PULL • Provide UNIQUE solutions / tools• INNOVATE!
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INNOVATION
INNOVATION not only with products/ technical
παραμέτρους but also in the way we do business…
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INNOVATION
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UNIQUE• New FANDECK in the market• Legally PROTECTED• Competitors CANNOT include in their DB• Abundant distribution• Focused DELIVERY to specifiers• Targeted CAMPAIGN
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UNIQUE
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UNIQUE
IKEA Home Furnishing Advisors
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CASE STUDIES
Color Guild
Teflon
IKEA
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AWARD8.000 companies
200 selected
21 awarded!
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COMMITMENT
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KEEPCALM
SELLPAINT
AND