scapa group plc · • emerging market with large growth potential • broad appeal across markets...
TRANSCRIPT
Market Segments
Becoming contract manufacturer of choice
Current trend in Healthcare to outsource
B2B partnership strategy
Turn-Key solutions capabilities
Rapid speed to market
Broad technology portfolio
Vertical integration and strong manufacturing know-how
Single supplier, dual source
Trusted quality
Start up
Asia based strategy
Focus and targeted approach
Position as credible alternative supplier
Acquisitions being targeted
Need critical mass
Focused on Automotive, Cable, Retail and Distribution
Focused on sectors with critical mass and leverageable position
Address greater share of customer spend by offering solutions not just stand-alone products
Position as trusted supply chain partner
Customer orientated strategy
Electronics 5%
Healthcare 31%
Business Breakdown
Industrial 64%
Asia 6%
Europe 45% North America
49%
Revenue Geography Profit
Electronics -1%
Industrial 44%
Healthcare 57%
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SCAPA GROUP FTSE 100 FTSE 250
FTSE AIM ALL-SHARE FTSE ALL SHARE FTSE UK TECHNOLOGY
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Adhesive Landscape
The adhesive space is dominated by a few large companies and multiple small companies with Scapa occupying a unique position of being mid-sized, independent and public
Select Adhesive Companies Revenue (Last Reported Fiscal Year)
£0
£50
£100
£150
£200
£250
Scap
a Gr
oup
plc
Lohm
ann
GmbH
ITW
(Sto
ckvi
s)Ch
ase
Corp
.Am
eric
an B
iltrit
e (T
ape
Divi
sion)
Adhe
sive
Rese
arch
Plas
to T
echn
olog
ies
Adch
emCo
llano
Adh
esiv
es A
GCo
veris
Adv
ance
d Co
atin
gsAd
vanc
ed M
edic
al S
olut
ions
(OEM
)Po
wer
band
Indu
strie
sW
alco
Cor
pora
tion
Tape
Mar
kTa
pe-O
Cor
pora
tion
Brite
-Lin
e Te
chno
logi
esSm
ith &
Nep
hew
(Gilb
erdy
ke)
Nor
gepl
aste
rLo
ypos
Hönl
e (A
dhes
ives
)Fi
rst W
ater
£0
£2,000
£4,000
£6,000
£8,000
£10,000
£12,000
£14,000
£16,000
£18,000
£20,000
Healthcare Growth
Transdermal / Drug Delivery
Medical Devices
Advanced Wound Care
Consumer Wellness
Calculated at current exchange rates Excludes Asia
45% £17.8m
28% £11.1m
23% £9.2m
4% £1.4m
31.5% £21.6m
30% £21.0m
36.5% £25.1m
2% £1.5m
FY12 FY14
Total revenue £39.5m Total revenue £69.2m
Skin Friendly Turn-Key Solutions
Design & Project Management
Bioflex® Performance Materials / Film Extrusion
Scapa Soft-Pro® Skin Friendly Adhesives
Coating
Converting & Assembly
Printing & Packaging
Sterilization Services
Logistics & Service
Skin Friendly Turn-Key Solutions
Trans-dermal Drug Delivery
Consumer Wellness
Medical Devices
Advanced Wound Care
Move Up the Value Chain • Promote value proposition • Business Development / Acquisitions to fill gaps
• Highly skilled and dedicated Healthcare sales team • C Suite sales
• Antimicrobials • Actives • MEDIFIX® mobile device fixation platform
• Fanatically reduce COGS • Continuous profit improvement
• One Global Healthcare QMS (SAP QMS Software validation)
• Global cGMP compliance plan
Improve Strategic Account Management
Innovation
Operational Efficiency – Margin Improvement
World Class HC Quality System
Strategic Building Blocks
Deliver Sustainable Profitable Growth
New Product Development Portfolio Map Combination products drive growth
Portfolio Initiatives
M A R K E T S
S I L I C O N E P L A T F O R M
High tack variants
Consumer Med Device
AWC Drug Delivery
Antimicrobials
AWC Consumer
Actives
P O L Y U R E T H A N E P L A T F O R M
Med Device Consumer
AWC Drug Delivery
High tack variants
Antimicrobials
AWC Consumer
Consumer
A C R Y L I C P L A T F O R M
Anti-fungal
Consumer AWC
MEDIFIX® Extended
Wear
Consumer Med Device
Actives
Consumer
Capability Enhancement on-going Substrate Evaluation on-going
Actives
Consumer
Deliver Sustainable Profitable Growth
Wearable technology sectors Home Health Revolution
Wearable Technology Sectors • Emerging market with large
growth potential
• Broad appeal across markets
• Growth driven by monitoring and treatment of chronic conditions
• Consumers taking more responsibility for own health
Relevant Wearable Technology Sectors
Medical
Vital Signs Monitoring
Chronic Disease Management
Pharmaceutical/ Drug Delivery
Wellness
Physiological Monitoring
Weight/ Energy Monitoring
Posture Correction
Sport/ Fitness
Sports Performance
Fitness Monitoring
Heating/ Cooling
Deliver Sustainable Profitable Growth
Electrical Lead e.g. EKG monitor, pulse oximetry
Stand alone e.g. Glucose, cardiac or oxygen monitor, athlete training device
Drug delivery e.g. Insulin pump
Complex materials and adhesive designs for simple solutions, compatible with all wearable
fixation constructions
Wearable Medical Device Fixation MEDIFIX Solutions™
MEDIFIX Solutions™
Enabling devices that live with you
Scapa Healthcare is the interface between the technology and the person.
Scapa Healthcare understands the diversity of the user base and designs to incorporate their needs.
• Aligns with the Healthcare value proposition and vertical integration
• Showcases Scapa’s expertise and capabilities in a new explosive market
• Opens new client base
Works across multiple technologies
Identifies unique users
Ease of Use Comfort Activity Wear-Time Safety
Design considerations guide success
Industrial Revenue
Auto £22.9m
Segment Geography
North America £53.4m
Europe £92.3m
Cable £17.9m
Retail £30.5m
Distribution £54.4m
Gen. Ind. £20.0m
Total revenue FY 14 - £145.7m
Segment Focus and Strategy
Automotive Cable
Retail Distribution
Focus on wiring harness, protection, assemblies and seat
heating
Maximise our current market and design position at 20
OEMs including Peugeot, GM, Audi, Chrysler and VW.
Focus on product development aligned with fast changing
design requirements
Focus on strategic solutions selling through a dedicated
global organisation aligned with our customers’ footprints.
Focus on submarine, high voltage and fibre optics segments of the market which requires high reliability and carries significant cost of failure
Leverage strong reputation and market position in a very niche and concentrated customer base and competitive landscape
Leverage global footprint to service global supply chain
Focus on strategic solution selling through dedicated global organisation
Broaden product and service offerings to offer one stop solution
Leverage strong brands and distribution networks
Expand additional POS across geography and categories
Expand the product range beyond core tapes to adjacent
items to increase our shelf space
Broaden and exploit our digital strategy
Address broad and fragmented market across many markets and applications
Focus on areas where we have critical mass and competitive positioning
Maximise profitability through product portfolio management and operational efficiency
Multi-tiered engagement model to increase our services level
Leverage inside sales and digital strategy to lower cost to serve
Industrial Focus
Clear focus and strategy
Organisation and resources re-aligned to the new focus areas and strategy
Developing a solid pipeline of new opportunities
Strategic engagement with key customers across their global footprint is yielding immediate return
• Consolidate converting landscape – Highly fragmented, dominated by family-owned small
businesses – Opportunities for back-office synergies – Expand Advanced Wound Care and Consumer Wellness
customer base • Expand capabilities
– Adhesive technology (e.g. medical grade hot melt, UV) – Materials (e.g. hydrocolloids, oral soluble film, electrodes,
implantable polymers) – Expertise (welding (RF, impulse, thermal, ultrasonic), injection
moulding, Rx/DEA controlled substance handling)
• Diversify customer base • Further penetrate chosen
healthcare segments • Offer turn-key solutions across all
healthcare segments (e.g. medical device assembly, trans-dermal)
• Increase importance to customers
• Consolidate coating and converting landscape – Assets tend to be larger and sit within larger companies – Opportunity for back-office and manufacturing synergies
• Expand product offerings (e.g. surface protection, foams) • Innovative technologies with high barriers to entry
• Increase footprint efficiency • Improve operating profit margins • Diversify customer base • Increase importance to customers • Reduce sensitivity to cycles
• Gain scale – Opportunities pre-dominantly in Asia – OEMs increasingly focused on healthcare, particularly mobile
monitoring devices
• Drive growth and improve margins
Roadmap Considerations
Any acquisition should be accretive, diversify the service offering, allow Scapa to build high barriers to entry and leverage the global infrastructure.
Healthcare
Industrials
Electronics
Focus Objective
• Traditional • Advanced • NPWT • Ostomy • Regenerative
• Pulse Oximetry • Implantables • Point of Care
Diagnostics – OTC • Point of Care
Diagnostics - Rx
• First Aid • Respiratory • Scar / Burns • OTC Trans-Dermal • Oral Care • Foot Care
• Infusion Sets • Rx / DEA Trans-Dermal
• Coloplast • ConvaTec • Covidien • J&J • KCI / Systagenix • S&N
• Alere • CareFusion • J&J • Masimo • Medtronics • St. Jude Medical
• Bayer • GSK • J&J • P&G • Reckitt Benckiser • Unilever
• GSK • J&J • Roche • Medtronics • Novartis • Sanofi aventis
• Foams • Hydrogels • Hydrocolloids • Alginates • Antimicrobials
• Bioabsorable polymers • Cable • Electronics
• Hydrocolloids • Oral soluble films
• Actives • Films • Microneedles
• Coating • Converting • Labelling • Sterilisation
• Coating • Converting • Welding • Injection moulding • Sterilisation
• Coating • Converting • Labelling
• Coating • Converting • Labelling • Sterilisation • Rx / DEA
Healthcare: Landscape
World Class Bonding Solutions
Segment
Select Sub-Segments
Select Components
Key Capabilities
Wound Care Medical Device Consumer Wellness Drug Delivery
Illustrative Customers
Scapa’s healthcare segments contain diverse, addressable and fast growing markets
• Application – Primary application today is wire harness for OEM manufacturing – External usage – After-market
• Geography – Relationship with major Tier 1 suppliers
• Technology – Water-based versus PVC
• Geography – Primarily within Europe and Asia
• Geography – Primarily in France (Retail)
• Channel to market – Retail and distributors; limited OEMs
• Potential for growth but lacks scale and presence – Flexographic printing – Reflective – Surface protection (ski tape) – Sports (hockey) – White goods
Industrials Considerations
Meaningful scope for expansion within existing segments
World Class Bonding Solutions
Automotive
Cable
Building & Construction
General
Period End Update
Scapa Group plc (AIM: SCPA), a global supplier of bonding materials and solutions, is today providing a period end update for the six months ended 30 September 2014. Group revenue and trading profits* have seen good growth over the same period last year, despite currency headwinds, which have reduced since our trading update on 22 July. The trading profit* margin continues to improve and the Group delivered strong operating cash flow, contributing to a healthy balance sheet. Scapa is well positioned to make further good progress this year and the Board remains confident about the Group’s outlook. The Group expects to announce its interim results on 25 November 2014. *operating profits before exceptional items and amortisation