Distribution Solutions Group, Inc. · NASDAQ:DSGR
Distribution Solutions — Lawson Products Inc/New — Investor Presentation (March 2011)
23 slides from Distribution Solutions's investor presentation, Mar 16, 2011
Slide 1: Investor Presentation March 2011
Investor Presentation March 2011 NASDAQ: LAWS www.lawsonproducts.com
Slide 2: Forward-Looking Statements
Forward-Looking Statements "Safe Harbor" Statement under the Securities Litigation Reform Act of 1995: This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. The terms "may," "shou
Slide 3: Agenda
Agenda Lawson Products at a Glance New Leadership Team Investment Considerations MRO Industry Overview Building an Efficient Platform to Drive Future Growth Financial Highlights Key Take-Aways 3
Slide 4: Lawson Products - At a Glance: Company Overview
1. Lawson Products - At a Glance 4 Company Overview Founded in 1952 Listed on NASDAQ (Ticker: LAWS) since 1970) Distributes Maintenance, Repair and Operations (MRO) products & solutions Serves industrial, commercial, institutional & government markets in all 50 U.S. states, Canada & Puerto Rico Supp
Slide 5: Lawson Products - At a Glance: Financial Highlights
1. Lawson Products - At a Glance Financial Highlights Growing Average Daily Sales (ADS) with diverse revenue streams ADS of $1,312 in Q4 2010 vs. $1,189 in Q1 2010 Average Order Size and Daily Orders per Agent improvement Reducing costs while investing in future growth of the business Improving EBIT
Slide 6: New Leadership Team to Evolve Company & Drive Growth
2. New Leadership Team to Evolve Company & Drive Growth 6 Leadership Team Tom Neri, President & CEO Joined in March 2003 as CFO Senior positions in publishing, including EVP of the Sun-Times Company and President & Publisher of Pioneer Newspapers, Inc. Ron Knutson, Chief Financial Officer Joined in
Slide 7: Investment Considerations
3. Investment Considerations We operate in a fragmented, but resilient industry... The MRO market remained steady during crisis period & is now recovering ....That Continues to Grow We are committed to evolving LAWS into a leading player... We have identified our core strengths & are taking advantag
Slide 8: MRO Industry Overview - Highly Fragmented
Large and highly fragmented industry North American industrial distribution market is broadly defined at +$200 billion for 2009 made up of +37,000 companies (1) Of these companies in the Industrial Distribution Market, Lawson ranked 28th by sales revenue in 2009 (2) 1 Rexel $16,200 12 Motion Industr
Slide 9: MRO Industry Overview - Opportunities for Competitive Advantage
4. MRO Industry Overview - Opportunities for Competitive Advantage 9 9 Strong financial position allows Lawson to invest in growth...
Slide 10: MRO Industry Overview - Lawson Seizing Opportunities
4. MRO Industry Overview - Opportunities for Competitive Advantage 10 Lawson actively seizing these opportunities Leveraging our core business + pursuing new initiatives focused on serving market with "unplanned" product need *September 2010 survey of 240 MRO customers Current Strength 75% prefer or
Slide 11: MRO Industry Overview - Core Business Today and Future Opportunities
4. MRO Industry Overview - Opportunities for Competitive Advantage 11 Core Business Today Products for "Unplanned" Needs "Planned" Products for Inventory Management Customers with unplanned needs buy products from sales reps, catalogs or the web for next day delivery Future Opportunities Customers h
Slide 12: Building an Efficient Platform: ERP Transformation
5. Building an Efficient Platform to Drive Future Growth ERP Transformation Timing Blueprint and configuration stages were completed in 2010 Beginning to be rolled out in waves - according to function - during 2011 Expected to be totally completed by early 2012 Key Benefits Makes LAWS an easier comp
Slide 13: Building an Efficient Platform: Network Optimization
5. Building an Efficient Platform to Drive Future Growth 13 Network Optimization Currently own 5 distribution centers (DCs) in US and 1 in Canada Plan to optimize distribution system in order to ensure we: Are present in the best locations from a cost & delivery POV (i.e. capture unplanned) Manage i
Slide 14: Sales Transformation - eCommerce
14 5. Building an Efficient Platform to Drive Future Growth Sales Transformation - eCommerce Launching of a new eCommerce website by Q1 2012 Creates a new sales channel & supports our existing field sales channel Enables LAWS to capture new types of sales & customers Frees up sales reps thereby incr
Slide 15: Sales Transformation - Same-Day Shipping & Next-Day Delivery
5. Building an Efficient Platform to Drive Future Growth 15 Sales Transformation - Same-Day Shipping & Next-Day Delivery Between 10-13% of sales in MRO industry come from unplanned and/or on-demand buying Providing same-day shipping and next-day delivery ensures LAWS can capture a greater share of t
Slide 16: Sales Transformation - Channel Strategy
5. Building an Efficient Platform to Drive Future Growth 16 Sales Transformation - Channel Strategy Opportunity to generate significant value by developing specialized channel strategies where LAWS is already strong, including: Government Automotive Strategic Accounts Segmentation in areas where LAW
Slide 17: Build or Buy
5. Building an Efficient Platform to Drive Future Growth 17 Build or Buy In addition to driving organic growth through building an enhanced platform, LAWS will also consider complementary M&A and partnership opportunities The parameters for such investments: Support targeted end-market segment(s) -
Slide 18: Financial Highlights - Income Statement
6. Financial Highlights - Income Statement 18
Slide 19: Financial Highlights - Balance Sheet
6. Financial Highlights - Balance Sheet 19
Slide 20: Key Take-Aways
7. Key Take-Aways 20 Increased earnings in 2010 & improved relationships with existing customers Strong balance sheet, margins & cash resources enable significant investment in growth Building the right platform to leverage future growth Experienced leadership team with track record of successful ex
Slide 21: Questions?
Questions?
Slide 22: Appendix
Appendix
Slide 23: Appendix: Financial Highlights - Year Income Statement
Appendix: Financial Highlights - 5 Year Income Statement 23
Lawson Products Inc/New — Investor Presentation (March 2011) on 6ix