MARINE ELECTRIC PROPULSION. Trade and Internationalisation Conference Genoa, October 4, 2013

Transcription

1 MARINE ELECTRIC PROPULSION Trade and Internationalisation Conference Genoa, October 4, 2013

2 Agenda Introducing Torqeedo Internationalisation in the marine industry Approaches and experiences

3 Introducing Torqeedo Global #1 in electric mobility for boats - > 40,000 electric propulsion systems in the field. - Best product performance. - Latest technologies. - True international leadership position; >70% of sales outside home market. Products equivalent to 1-80 hp. Founded February 2005, headquartered near Munich. Measured by innovation awards, one of the most distinguished young companies in the marine industry. Awards include among others: Deutscher Gründerpreis, Red Herring Europe top 100, NMMA Innovation Award (3 times), DAME Award etc. 3

4 Perspective on Performance Different Perspective Different Performance Overall efficiency in percent 56 Input Power Overall efficiency Shaft Power 5-15 Propulsive Power Record-level overall efficiency of all Torqeedo outboards provides more speed and range.

5 Key products Travel For Tenders, Dinghies & Daysailers 3 HP equivalent with inbuilt lithium battery Similar to 3 HP gasoline outboard = Power = Speed = Range + Lighter + More Comfort + Cleaner + Quieter + Waterproof IP67 + Information System with GPS based range + Solar Chargeable 5

6 Key products DEEP BLUE Flat fee boating for heavy users and other selected segments Only production outboard for high power electric propulsion 80 HP equivalent Superior safety system 9 years warranty on battery capacity Inboard version available for

7 Internationalization an imperative, not an option General internationalization drivers Culture Communication Transport Global institutions Global standards Marine-industry specific internationalization drivers Small market volumes require addressing global markets Internationally minded customers require international mindset Trend from artisanry towards industrialization will continue to drive need for volume and internationalization Marine industry traditionally with high degree of international trade. Many companies in the industry with sales >70% outside their home market.

8 Focus shifts to new countries Outboard market development Market development in traditional boating (export) markets Market development in booming economies USA -40% vs Russia +132% vs France -40% vs China* +50% CAGR p.a. Italy -50% vs Brasil Booming Sweden -50% vs Russia, China, Brasil already today among the top global markets for marine products * General market growth, not specific for outboard market

9 They are difficult to work in though.. High import cost Complex import procedure Complex tax and legal structure with implications for margin calculation Different taxes along Brazilian states Taxes with impact not only on bottom line but also on margin calculation Frequent changes to legal system Infrastructure limitations Planilha import cost calculation up to dealer level (60 line items)

10 Objectives, fields and and degrees of internationalization Domestic approach International with domestic core Truly global approach Drive growth Sales Marketing Service Domestic operations Indirect distribution (exports) Direct distribution Strategic partnerships and JVs Fully owned salesmarketing subsidiaries Fully integrated and international subsidiaries International staff and international careers Improve cost position / benefit from regional competencies Supply chain Production R&D Very small companies Global sourcing / supply chain Sourcing offices International production International R&D Majority of companies Very large companies

11 No one-size-fits-all-approach Company size Available resources Market potential Vicinity to homemarket Segment similarity Logistics Import Market requirements Internationalisation approach Company requirements Financial Manpower Requirements of products Brand Distribution Explanation Service Other requirements Legal Other market characteristics Selection from various options Synchronise market- and company-requirements

12 International growth approaches applied by Torqeedo Where we do it Why we do it Indirect distribution (export) >30 countries Fast internationalisation Strong partners Low cost-to-serve Internationalisation intensity Direct distribution JVs / Strategic partnerships Sales/marketing subsidiaries High impact High vicinity, low cost-to-serve Medium volume required at minimum High-potential markets Low vicinity High complexity and cost-to-serve Largest markets in the world

13 Torqeedo world map Direct distribution Indirect distribution Strategic partnerships

14 Key challenge: Internationalisation approach needs to address all major marketing levers Market Awareness Relevant Set Trial Purchase Loyalty Public Relations / Advertising Catalogue Online / E-marketing Boat Shows Distribution / Dealer Advocacy Demonstrations & Open Days 14

15 Outlook Drive international growth Improve cost position / benefit from regional competencies Easier access to many markets Global middle class will double in our decade Cost pressure Continued opportunity to optimize supply chain through internationalization and industrialization Substantial opportunity in internationalisation Imperative rather than an option

16 Contact Torqeedo GmbH Friedrichshafener Str. 4 a Gilching Germany Dr. Christoph Ballin CEO Tel Mail christoph.ballin@torqeedo.com 16