Redacted Business Plan 1

DKSHBusiness Plan: 2011 -‐ 201

Contact Details;DKSH AustraliaBrad Jones

March 31, 2011.

1. Executive Summary

Key Statistics Snapshot Revenue Annual Growth 06-‐11 Annual Growth 1

$10.2bn 5.8% 5.2%Profit Exports Businesses

$988.1m $154.7m 1,251DKSH Australia’s has completely reworked the earlier 2010 business plan whereby thisnew incarnation, 2011-‐201 plan, includes; Fast-‐tracking the staff payback period (from , Identifying aunique value proposition,

extension to the marketing plan and increasing DKSH Australiareturns from; [2010 plan; $ M top-‐line sales, $ M GM1, $ EBIT] to

[2011 plan; $ M top-‐line sales, $ M GM1, $ EBIT].

Graph 1: Allocation of revenue by market segments.

2. Business OverviewDKSH’s business unit focuses on sales of and

In particular, solutions that revolve around such as the

Whilst the applications vary, and new opportunities present themselves, inter alia andlegislation, has aligned itself with world-‐leaders in equipment manufacturing that present mature

solutions to a burgeoning in Australia and indeed the Asia Pacific. The stimulus for this burgeoning market lies inseveral factors; industry valued at$10.2 Billion, increasing commodity prices, the impact of on manufacture and transport,increasing labour costs, population growth and regulations.

Presently the within Australia is in its infancy, which whilst numerous successes and impressivetestimonials for projects completed on behalf of top-‐tier businesses, presents a new opportunity. developed thisplan to ‘gear-‐up’ for the maturing Australian market and be ready for an increased demand in

3. Legislative Overview

3.1 New legislation:

A key driver in the maturing of the Australian was enacted on namely1 This ists the following obligation as a key provision within the scope

Part 32 and Part 43 of this have enforcement measures for individuals and businesses alike based upon predeterminedclasses of manufacture, supply, distribution, importers and user.

The is yet to become regulation as 'call for comment' closedon the draft legislation on 4 This scheme forms an integral part of the as it definesthose classes that are either From a momentum perspective, the drive toward moreaccountable practices is increasing with each new piece of

In summary, the stated on2011 (Appendix 1)

3.2 PPSA : Personal Property Securities Act 20095

In October 2011 the Personal Property Securities Act (PPSA) will make major changes to the registration and enforceabilityof security interests in personal property throughout Australia. This new legislation will effect ‘Romalpa clauses’ whereby allsecurities and goods must be registered on the PPS Register as a matter of priority, over and above any Romalpa clause.Additionally, the PPSA introduces the concept of “Purchase Money Security Interest” (PMSI) which will generally takepriority over other security interests. DKSH and its legal counsel will need to finalise our position and processes to adhere tothe PPSA, particularly in light of our move forward into

1

5 An overview of the PPSA for Manufacturers and Wholesalers, click here for document download.

Graph 2. Australia's

expected to grow from approximately The sheer size ofthe need for this significant quantity of will require even greater levels of technology and service support.

Graph 3. Australia's

4. Market Overview

4.1 Industry developments: Bigger is Better

regionalisation developments provide opportunities to gain economies of scale, and should benefit thelarger who are able to tender for larger contracts. will look forcompanies offering innovative solutions, which will tend to favour larger companies that invest more in R&D andtechnology. The produced a report on which recommended that

should consider shifting the responsibility for in large urban centres fromto appropriately constituted regional bodies’.

This shift to a large-‐scale, centralised responsibility for is already occurring in Victoria and New SouthWales. This trend is expected to continue as the need to invest in large-‐scale, capital-‐intensiveinfrastructure continues. It has been estimated that up to 80% of if there was appropriateinfrastructure in place.

4.2 Industry Outlook:

Over the next years, some significant changes are expected in this industry. There will be stronger demand forand increasing revenue from the adoption of and andgrowing economies of scale and scope available to industry players. Expanding waste diversion targets at the state

level and the likely introduction of a will have a major impact on thisindustry. Over the years through 20 industry revenue is expected to grow at an average rate of 5.2% a year to reach $13.09billion. Revenue growth is expected to result from the increasing level ofThe economic downturn is not expected to have a lasting impact on industry performance.

4.3

out of favour and is in. A is no longer considered an appropriate place forunless it is used to produce Over the past few years, a number of

strategies have been announced, which aim to reduce the and increase the amount ofA national group of has renewed its commitment to higher levels of

Industry operators are responding by increasing their investment in and

An important driver of industry growth is the that requires Australiansare the second-‐highest per person in the world. It is estimated that in 2009-‐10, the

nationallytotalled about up from . This equates to aboutby each Australian every year. The economic downturn has not effected a major difference in the

is the largest and most reliable Revenue

generated from is estimated to be decreasing as a share of revenue, whilehas been growing. A large contributor to revenue growth has been the high prices received for

commodities over the past few years. Overall, the industry is expected to generate revenue of $10.19 billion in up10% from the previous year due to a boost from the one-‐off impact of Over theyears through to real revenue is expected to grow at an average rate of 5.8% per year. Employment will reachabout 36,000, while establishment numbers will remain relatively steady. Over the next years, industry revenue is expected to grow at an average annual rate of 5.2% to reach $13.09 billion in201 . Revenue growth is expected to result from the increasing level of

which are set by are increasing nationally. The increases are designed to driveand promote . The government aims to provide incentives for to reassesstheir by reducing the and investing in The levy increasesare not expected to be absorbed by -‐-‐ they will be passed on to theIn late ways to increase its ,partly due to a in the area. It aimed to byup to 70% as a long-‐term goal. These types of investigations and initiatives are becoming increasinglycommon, as impetus converge.

for the states of Australia, estimated,

State / territory Total Generated

Tonnes(000) Percent

NSW

VIC

QLD

WA

SA

ACT

TAS

NT

TotalChart 1.

Targets and Number ofState

New South Wales (NSW)7

Queensland (QLD)9

Western Australia (WA)Victoria (VIC)South Australia (SA)Northern Territory (NT)Tasmania (TAS)Chart 2.

6

4.4 Critical Success Factors: Customer Perspective

Ø Awarding of and approval for the building is dependentupon meeting conditions.

Ø Having a high prior success rate (including completed prior contracts)Operators with a proven track record are likely to be awarded contracts, particularly contracts of greater value andduration.

Ø Access to the latest available and most efficient technology and techniquesOperators with access to proven are assisted in bidding contracts.

Ø Membership of joint marketing/distribution operationsStrategic alliances with other service providers, through the sharing of equipment, can reduce costs.

Ø Effective cost controlsThis is a very competitive industry, meaning that close attention to costs is important in order to run profitably.

Ø Having an extensivedepend upon a reliable and ability to sell

4.5. Market Factbase: Lead the Way

Revenue 2010-2011

Annual Growth 2006-2011

Annual Growth 2011-2016

Profit Exports Businesses Employment

$10.2 Bn 5.8% 5.2% 988.1 m $154.7m 1,251 36,000

Chart 3. Market Overview 2010.

Nationally, the is estimated to have increased from about in 2003, toin 2010 and forecast to reach nationwide by 201

52% 30% 18%

Chart 4. Sector split of $10.2 Billion in revenue 2010-‐2011.

4.6 Customer Business Locations:

The geographic distribution of this industry reflects the distribution and concentration of populations,as well as the extent of involvement in

in the respective .

accounts for the largest market share, although this share has decreased since 2002-‐2003, when it wasaround %. share of revenue has remained relatively constant over the last five years.

have both increased their market share. These have benefited from strong population growth and thegrowth in

are estimated to have a higher share of the market relative to their population. Inboth these the is estimated to be above the national average of around percapita. The growth of may account in part for the high level of The larger the size of the more likely it is that are out to

Also, the more urbanised the population, the more likely that

4.7 Key buying industries:

State Amount DurationNew South Wales (NSW)Queensland (QLD)Western Australia (WA)Victoria (VIC)South Australia (SA)Northern Territory (NT)Tasmania (TAS)Chart 5. Allocation of .

4.8. Customer Data: Oligopoly

Major Players in the

NameMarketShare Annual Sales Employees

Chart 5. Largest companies

18

4.9. Competitor Analysis:

4.9.1

4.9.2

4.9.3

5. Marketing Roadmap

5.1. Unique Value Proposition .

The Australian business landscape suffers from a symptom whereby insufficient information coupled withcultural expectations, driven primarily by leave the somewhat confused.

The proposed marketing strategy is to will, in theshort-‐term, ensure that there is some conjecture over 'how to comply', especially in the area of DKSH will seek toown this position through Thehas many holes, particularly in the areas of implementation and cost, we will seek to elucidate a solution for

while this is being introduced.

5.2. Provide Options:

To identify and communicate to the market the most mutually beneficial option for ofThis will require modelling and consultation with structure and nature of

agreements. To end goal is to create a position whereby; DKSH are and the customer is

22

5.3. Grow the

As of June 1, 2011,Through marketing initiatives and arrangements we will seek to expand our

share of market in the Our stock profile of , will need review inorder to satisfy customer needs and mitigate

5.4. Supplier Relations: in quarterly reports.

5.5. Prospects:

A key component to the marketing strategy is to gather;Additionally, the

and network will need to be

5.6. Marketing Plan: Extend marketing plan.

Extend the existing marketing plan to service new initiatives and stimulate the during the ‘project dandelion’process with respect to lead generation. The marketing plan will seek to communicate offering andgenerate Initial stages are to leverage to build credibility for key market verticals– this is an essential component to establish

6. Financial Plans

6.1 Sales and GM1 2011-‐2014Agency 2011 Sales GM1 2011 2012 Sales GM1 2012 2013 Sales GM1 2013 2014 Sales GM1 2014

Total

Chart 6. Forecast by Agency.

** Pending acquisition of agency.

^ Pending acquisition of agency.

6.2 Business Unit growth until

Year PEC Sales (Inc. Commission) GM1 EBIT

Chart 7. growth forecast.

6.3 Cost & Investments

The largest internal cost at present with the rub being that historically have takenIn order to fast-‐track this payback period to under 12 months the following

initiatives have been introduced;

7 Risk Assessment

x section removed as this is for linkedin examples only.

8. Implementation Roadmap


9. Supplier Roadmap


Redacted Business Plan 1

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