COMPANY PROFILE Candy Group Profile
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1 COMPANY PROFILE
2 OVERVIEW Candy Group is a leading privately owned by the Fumagalli family - household appliance company well known internationally with over 70 years of industry experience. The Group is present across Europe, Middle East, Asia and Latin America. Under a diversified portfolio of brands with differentiated market and value proposition, Candy Group offers a full range of small and large domestic appliances, both free-standing and built-in, including washing, cooking, cooling and small domestic appliances. Products are marketed under two international brands, Candy and Hoover, and several national brands as Rosières (France), Jinling (China) and others. Candy Group, employs staff members, has 6 manufacturing facilities in Europe, Turkey and China, and 45 subsidiaries and representative offices around the world, including Candy Hoover Service, which is dedicated to after-sales support and comprises centres and over specialists. The Group Headquarters, design centre, central facility and R&D premises are based in Brugherio (MB), Italy. 2
3 CANDY: The expert in Home Appliances since 1945 Candy has been a pioneer and innovator in global washing machine market. It produced the first Italian made washing machine in 1945 and invented the modern front-loading washing machine in the late 50s, setting the European standards still in place today. Going forward, the Group will leverage its washing machines expertise to continuingly acquire market share in strategic market segments to accelerate a profitable growth. Thanks to its long history and experience in achieving great success, Candy has been able to develop simply-fi, the first complete range of appliances connected via Wi- Fi enabling easier management remotely. This range of innovative products features appliances from all key categories to wash, cook and store in a perfect Italian style. 3
4 HOOVER BORN INNOVATIVE Hoover is the inventor of the vacuum cleaners; it is the 3 brand in Europe for floorcare, with an internal R&D department. The Hoover technology is patented and competitive and the brand can claim features recognized to be UNIQUE in the market. As «Specialist» Hoover offers a wide and deep range of products for all the needs: vacuuming, carpet washers, floor washers, and steam cleaners as well as MDA appliances both free-standing and built-in. Since 2010, Hoover also entered the Ironing Systems segment. 4
5 ACQUISITIONS 1945 Candy produced the first Italian made washing machine The growth strategy was built on innovation and diversification range also by acquisitions: in 1971 Candy acquired Kelvinator, a specialist in refrigerators and in 1973 La Sovrana, specialist in cooking appliances The Group acquired Zerowatt, producer of top-loading washing machines and dryers. This was followed by Gasfire, an Italian prestigious name in built in appliances Candy acquired Mayc- Otsein of Spain, a specialist in toploading washing machines. The following year, Iberna in Italy, a well-known national brand in the cooling segment is added to the brand portfolio The Group acquired the Russian washing machine brand Vyatka and its manufacturing site. In 2006 Jinling brand was acquired in China together with industrial facilities sales network and international operations 2013 In 2013 Candy group completed the acquisition of the Baumatic brand in the UK Country. Baumatic is a well-known domestic appliances brand specialised in built in products, freestanding kitchen and wine cooler 1961 Candy moved from Monza to Brugherio where the new HQs and large industrial site were completed, including R&D labs 1980 Kelvinator UK was acquired, making the beginning of international manufacturing 1987 In 1987 came Rosieres, a prestigious French Brand, well known for its top-of-therange built-in and free-standing cooking appliances 1995 Hoover European Appliances Group was acquired with exclusive rights on the brand name and products for the whole Mediterranean area, Europe and the former USSR 2007 Early in 2007 the acquisition of Doruk with its brand Susler in Turkey, gave the Group an industrial site for cookers, hobs, ovens Strategic cooperation agreement with Hefei Meiling Co. Ltd to strengthen the distribution of Candy, Jinling and Meiling WM in China as well as a cooling partnership 5
6 PRODUCT MILESTONES s-60s In late 1950s and 60s, Candy invented the modern front-loading washing machine, the first completely automatic washing machine setting the European Standard still in place today 1974 Candy tempo and variant are the first washing machines able to adapt water temperature depending on fabrics to wash 1980 Candy Trio: the unique 3 in 1 product: hobs, oven and dishwashers in standard dimension. 90s Specialists in the slim segment with the first 33 cm washing machines GrandÓ is the revolutionary washing machine with the highest and larger door in the market 2010 Aquavision is a patented water tank integrated within the porthole of the dryer to collect water condensation Candy introduced the first complete range of connected appliances, Candy simply-fi 2015 Candy celebrates 70 years anniversary, and formulated new growth strategy 2016 Watch & Touch oven Revolution in the kitchen Candy produced the first Italian made washing machine 1966 In 1966, Stipomatic was launched: an automatic dishwasher with two compartments; at the same time, the Superautomatic washing machine was launched. In the same year was produced the Candy Misura washing machine; it is the first compact washing machine precursor of the Aquamatic serie 1978 Candy is the first Italian Company to produce No Frost Refrigerators: a cooling technology to avoid breeze inside the product 1984 Cuocirapido is the first microwave designed and produced in Italy 1986 Candy Alisé: the first washer-dryer in Europe with internal condenser, the evolution of Candy 2.60 dated s Specialists in the big load capacities: front loader WM up to 11 kgs, dryers up to 10 kgs, top loaders up to 8 kgs 2004 First DW able to wash 15 place setting in standard dimensions 2009 DUO is the only twoin-one solution containing a oven and a dishwasher 6 place settings 2009 Candy patented Usee: 14 LED lights placed on the oven inner door replacing the traditional incandescent bulb Mix Power System: the most effective rapid wash ever in the market 2016 Candy introduces the first whole connected range with NFC and the first DW able to wash 16 place setting in standard dimensions AND 6
7 PRODUCTION FACILITIES Key production facility BRUGHERIO (ITA) KIROV (RUS) BOURGES (FRA) JIANGMEN (CHI) Brugherio (Italy) Eskisehir (Turkey) Kirov (Russia) Jiangmen (China) Bourges (France) ODM/ Industrial Partners ** Washing Kitchen SDA ESKISEHIR (TUR) 2 SITES **The Group cooperates with various ODM subcontractors/industrial partners in the manufacturing of washing, refrigerators and SDA products 7
8 R&D FACILITIES Candy s R&D Capability Italy UK Turkey China In 1945 In 1950s & 60s The workshops of Eden Fumagalli produced Model 50, the first 100% Italian made washing machine. The Candy brand name came into being as fruit of strong innovation In 1954, Candy pioneered the washing machine industry again by launching Bi-Matic, the first semi-automatic washing machine with a spinner; and just 5 years later, the washing machine became completely automatic - Candy raced ahead on the road of innovation In 1980s & 90s Candy made a series of domestic and international acquisitions in washing machines as well as refrigeration and kitchen appliance sector. The horizontal and vertical integration further strengthened Candy s R&D capabilities Today Strengthened by its long experience in the domestic appliance sector, Candy Groups continues to launch innovative products that meet the needs of diversified consumer targets 8
9 SERVICE DEVELOPMENT The mission of the Candy Group customer service is to consolidate the relationship with customers by efficiently and courteously satisfying their needs with respect to technical supporting and responding to their inquiries. The aim is to guarantee a long lasting positive experience with the group s appliance providing an effective technical support and guaranteeing a highly professional service through a consolidated and extensive network. 9
10 WHO WE ARE 10
11 MISSION Our mission is to enhance lives with home solutions that surprise and delight consumers the world over. Beppe Fumagalli, CEO 11
12 VISION Candy Group people are proud to positively transform the world through their work. We are leader in understanding consumers and their needs so that we can deliver the best experience in terms of both products and service. Through our brands we develop solutions for the homes, creating a growing value for all stakeholders. 12
13 VALUES A Group united by the same values: Relevant and rapid innovation enables continuous improvements to product performance and service, caring for consumers evolving needs. Respect for all individuals, be they consumers, employees, suppliers or partners. Design that achieves a harmonious and distinctive look that is centered on individual product functionality. Consumer centric: aligning our products and service with consumer expectations. Unique touch: style and out of the box approach. 13
14 STRATEGY Candy Group is proceeding with a structured industrial plan that has a very precise vision - to identify and consolidate its leadership in strategic sectors (such as high capacity models, slim dimensions, washerdryers, top loaders etc.) in which the company can boast real added value. The strategy of the Candy Group can be seen in horizontal and vertical assets; the technological innovation (connectivity in particular) and the positioning of the Candy and Hoover brands are transversal elements in the development plan, while 4 Business Sectors (Washing, Built-in & Cooking, Cooling and Small Domestic Appliances) represent the areas to focus for the future. Accelerate Operational excellence is the rule of the game INNOVATIVE - FAST - EFFECTIVE VALUES SMARTNESS WASHING BUILT-IN SDA COOLING BRANDS - TECHNOLOGIES BE BIG IN STRATEGIC SEGMENTS ASSET VISION 14
15 2016 RESULTS In 2016, the Group achieves a turnover of. 1,035 billion growing by 10% compared to Fastest growing Group in Europe Candy gained market share in 21 out of the 23 European countries surveyed Hoover vacuum cleaners is n. 2 Brand in the 10 European countries panel Leadership in smart appliances A P R O F I TA B L E FA M I LY O W N E D G R O U P 2016 key figures (euro Mio) TURNOVER: % EBIT: % (restated) net profit: 12-15
16 FASTEST GROWING GROUP IN EUROPE +13% Flat FX +10% Best Year ever! Flat FX 16
17 GLOBAL COMPANY Overseas, 14% UK, 24% Other Europe, 15% Poland, 2% DACH, 4% France, 16% Russia, 4% Iberia, 7% Italy, 14% 17
18 MDA EUROPEAN MARKET SHARE* 18
19 WASHING EUROPEAN MARKET SHARE* 19
20 FLOORCARE EUROPE MARKET SHARE* 20
21 BRANDS 21
22 A SUCCESSFUL MULTIBRAND STRATEGY BRAND PORTFOLIO 22
23 BUSINESS SECTORS 23
24 BUSINESS SECTORS: 4 PILLARS WASHING Candy Group is a trend initiator in the global washing market since the production of the first Italian washing machine in 1945 until today, with a full range of WiFi connected appliances. Constant innovations have been developed in terms of automation, design and functionality, making better products in terms of performance to ensure greater efficiency with reduced consumption in all washing product lines BUILT-IN & COOKING The Built-In and Cooking products combine the solid values of the Italian cooking tradition with cuttingedge performance, in line with current trends: perfect integration between the appliance and the kitchen, space management through large capacities and flexibility, innovative and functional design and the use of new technologies, above all, linked to connectivity. COOLING Cooling Business Sector aims to develop appliances setting new standards in Refrigeration by re-designing the traditional refrigerator into a smart appliance: preserving food at the best, constantly helping the storage and always finding simple solutions to every need in the kitchen No matter how the family is big or complicated, there is always a good solution for your food. Wide range of platforms with an astonishing design able to satisfy every need and style. SDA Hoover is the inventor of the vacuum cleaners; it is the 2 brand in Europe for floorcare, with an internal R&D department. The Hoover technology is patented and competitive and the brand can claim features recognized to be UNIQUE in the market. As «Specialists» Hoover offers a wide and deep range of products for all the floorcare needs: vacuuming, carpet washers, floor washers, and steam cleaners; since 2010, Hoover also entered the Ironing Systems segment 24
25 CONNECTIVITY Innovation Connectivity Market Strategy Connected Home Appliances and the integration in IOT will be mid-term standard in White Goods 2014 Innovation leadership in all segments Candy introduced the first complete range of connected appliances, Candy simply-fi to the market Solution Smart Connectivity «NFC» Two connected platforms: Full Connectivity «Wi-Fi» 2015 Hoover introduced Wizard, an advanced connected range tailored to UK customers + Local Control, tap-on + Enhanced performances + Value in standard solution + Always connected + Everywhere control + Premium functions & solutions 2017 All Candy Group s washing machines will be connected 2019 Within 2 years all Group appliances will be connected Proximity Control Remote Control 25
26 CONNECTIVITY CANDY SIMPLY-FI Candy is the first player in the market to introduce a FULL RANGE EQUIPPED WITH WI-FI and MANAGED VIA APP Simply-Fi is the FIRST set of appliances equipped with Wi-Fi technology and managed with an App. The connection is bi-directional: users can operate the appliance remotely, and the appliance can send messages to the user. The APP is one for all appliances, but each product can live independently 26
27 CONNECTIVITY HOOVER WIZARD Hoover Wizard: stay in touch with your home wherever you are Wizard is a full range of Wi-Fi enabled domestic appliances, which can be controlled by smartphone or tablet through the exclusive Wizard App. Thanks to Wizard, you can keep your appliances under control 24 hours a day, 7 days a week and with the innovative extra functions exclusively designed for the app, you ll be able to tailor the way your appliances function, to best suit your needs. 27
28 Thank you 28
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