RS Group PLC · LSE:RS1
RS — Investor Day (February 2012)
24 slides from RS's investor day presentation, Feb 13, 2012
Slide 1: Asia Pacific and China Update
Asia Pacific and China Update London February 13th, 2012
Slide 2: Group strategy
Group strategy “The world’s distributor of choice” Vision • International growth • Electronics and Maintenance • eCommerce Strategy • Operating leverage • UK profitability • Set by each business Priorities • Ensure alignment and clarity Implementing a clear and consistent strategy 2
Slide 3: Asia Pacific is 18% of International business
Asia Pacific is 18% of International business International Growth Continental North Asia International Europe America Pacific Market Position No 1 No 3 No 1 No 1 Sales £m, FY11 414 262 150 826 % of International 50% 32% 18% 100% 5 year CAGR (1) 5% 11% 9% 7% Market Opportunity GDP+ GDP+ GDP++ GDP+ (
Slide 4: Management biographies
Management biographies Richard Huxley – Regional General Manager, Asia Pacific • Joined RS in 2006 • Previously VP Marketing for Arrow Electronics, Asia Pacific • Born in UK, lived in Hong Kong for 10 years Clement Zheng – Country Manager, China • Joined RS in 2010 • Previously Director of Sales Chi
Slide 5: Asia Pacific Growth Strategy
Asia Pacific Growth Strategy Richard Huxley Regional General Manager, Asia Pacific
Slide 6: We operate in all key markets in Asia Pacific
We operate in all key markets in Asia Pacific 12 markets, 17 offices, 1000 people 200,000 catalogues 13 websites in 6 languages Over 550,000 products 200,000 customers Global operating model 17 local sales offices Industry leading footprint and infrastructure 6
Slide 7: Asia Pacific represents a massive opportunity
Asia Pacific represents a massive opportunity Market opportunities Greater China Market Penetration(1) High Australasia 19% Japan SE Asia South East Asia 5% Opportunity to grow share Japan 5% Medium China 3% APAC 5% Australasia UK 100% Low Medium High Growth rate of available market • Significantly
Slide 8: RS is the market leader in Asia Pacific
RS is the market leader in Asia Pacific Historic growth Balanced product portfolio £m, Reported sales CAGR (1) APAC Sales by Product, FY11 150 APAC 9% Greater China 17% Maintenance Electronics 100 53% 47% South East Asia 14% 50 Japan 6% Australasia 4% 0 FY06 FY07 FY08 FY09 FY10 FY11 eCommerce - one
Slide 9: Clear strategy to maximise the opportunity
Clear strategy to maximise the opportunity Regional focus with global leverage 9
Slide 10: More customers buying more products
More customers buying more products Customer acquisition model Developing long term loyalty High intensity marketing Sales focus to expand contact base Investing to acquire and retain customers 10
Slide 11: Exploit the full potential of eCommerce
Exploit the full potential of eCommerce eCommerce has transformed our business Key source of new customers APAC eCommerce Growth H1 FY12 51% Channel 42% Share 35% 32% 33% 29% 27% FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 Localising the experience Human touch online eCommerce is a game changer 11
Slide 12: Build and maintain a market leading offer
Build and maintain a market leading offer Leading service levels today Integrated approach 100 88 85 Japan ‘Enhanced 79 semiconductor’ campaign 75 68 60 57 TRI*M Index 50 25 0 RS Asia Pacific RS Continental Trade/Distribution Key Competitor Key Competitor Key Competitor Europe APAC Benchmark China J
Slide 13: Employer of choice
Employer of choice Recruitment Development High performance culture Engagement We are investing in people to accelerate growth 13
Slide 14: Asia Pacific growth poised to accelerate
Asia Pacific growth poised to accelerate • Industry leading footprint and infrastructure • Asia Pacific represents a massive opportunity • RS is the market leader in Asia Pacific • Clear strategy to maximise the opportunity • China key to Asia Pacific success Target doubling APAC sales CAGR to 18% 1
Slide 15: China Growth Strategy
China Growth Strategy Clement Zheng Country Manager, China
Slide 16: RS accelerates investment in China
RS accelerates investment in China RS China development roadmap 1997 2002 2006 2009 2011 Nov • RS launched in • First fully compliant • Same Day Dispatch • Web Offer • Production China / Hong Kong Compulsory Product service offer launched in Expansion Packaging Certification System (CPCS) China capa
Slide 17: China is an exciting opportunity for RS
China is an exciting opportunity for RS UK China Relative GDP 1x 2.8x RS penetration 100% 3% Position No.1 No.1 Massive and fast growing market Highly relevant for RS Strategy • World’s second biggest economy • 50% of World electronics market • Fastest growing G10 economy • Biggest automation market
Slide 18: RS leads high service level distribution
RS leads high service level distribution Excellent logistics footprint Step change in growth achieved Sales,Sales, £m £m Next Day Delivery 30 CAGR 24% 1 Day Delivery 2 Day Delivery 25 20 Beijing Beijing 15 10 Shanghai Wuhan 5 0 FY06 FY07 FY08 FY09 FY10 FY11 Guangzhou Shenzhen • 5 local offices • Enh
Slide 19: Customer acquisition – key to China success
Customer acquisition – key to China success Building brand awareness Maximise customer conversion Target tier 2 cities Strategic industry focus Leeds Munich Existing customers 30 40 50 60 70 80 GDP in £bn High impact marketing and focused sales 19
Slide 20: eCommerce – a huge opportunity
eCommerce – a huge opportunity No.1 Netizen population and growing Our customers are searching Population (0,000) Source: 2011 China Internet Development Status Statistics Report from CNNIC Channel share from RS Online registrations China understanding vital Easier to do business Payment Gateway Sou
Slide 21: Investment to significantly improve the offer
Investment to significantly improve the offer Strategic electronics suppliers Strategic maintenance suppliers New packaging capability Value added tools Market leading offer 21
Slide 22: Winning the war for talent
Winning the war for talent Mentor programme for induction Industry knowledge training Product Easy Chat ~ 轻松聊产品~ 360°personal development Career planning My My Rewards Career Leadership Learning & RS Way Imperative Development of Working Work Life Diverse Balance Work Force Attracting and retaining
Slide 23: China summary
China summary • Well established and market leading infrastructure • Second largest economy, highly relevant for RS strategy • RS has strong competitive advantages • Very clear how to apply the RS model and capitalise on it • Current market position and investment gives confidence to accelerate grow
Slide 24: Questions?
Questions? 24