WE RE CHANGING THE GAME.

Transcription

1 WE RE CHANGING THE GAME. WOOLS OF NEW ZEALAND STRATEGIC REVIEW 2016

2 NEW PRODUCT DEVELOPMENT Boss Design Group Cocoons featuring Camira Fabrics Ltd Blazer Fabric, which uses Wools of New Zealand lambswool INVESTING IN NEW TECHNOLOGY Oritain authenticating origin of wool INVESTING IN NEW TECHNOLOGY GlacialXT Kiteq NEW PRODUCT DEVELOPMENT Natural Elements Flooring Ltd carpet range Africa uses Wools of New Zealand Laneve TM wool

3 WOOLS OF NEW ZEALAND - STRATEGIC REVIEW STRATEGIC REVIEW 2016 CHANGE THE GAME STRENGTH THROUGH INNOVATION This year the board and management team of Wools of New Zealand undertook a comprehensive strategic review of the company, engaging with all Wools of New Zealand staff, growers and industry partners. We remain focused on delivering on our prospectus commitment to build long term value for our shareholders, through providing opportunities for growers to sell their wool and strengthening the Wools of New Zealand brands. In recognition of the dynamic nature of Wools of New Zealand, two business models have been developed to recognise the different ways that Wools of New Zealand seeks to create value for its growers and customers: 1. THE ROCK 2. THE GAME CHANGE

4 4 WOOLS OF NEW ZEALAND - STRATEGIC REVIEW 2016 OUR KEY OBJECTIVES 1 CONNECTING THE CONSUMER WITH THE GROWER 2 PROVIDING SOLUTIONS FOR OUR MARKET CUSTOMERS AND GROWERS THROUGH THE VALUE CHAIN 3 DISCOVERING AND DELIVERING INNOVATIVE USES FOR WOOL WITH SCIENCE 4 BUILDING AND NURTURING THE WOOLS OF NEW ZEALAND BRAND STORY

5 WOOLS OF NEW ZEALAND - STRATEGIC REVIEW IGNITING THE POTENTIAL OF OUR NATURAL WOOL 6 ENSURING ETHICAL, SUSTAINABLE AND RENEWABLE PRODUCTION 7 DELIVERING A SUSTAINABLE RETURN ON INVESTMENT TO OUR SHAREHOLDERS. BECOME A GAME CHANGER AND REAP THE REWARDS AS YOU ROMANI FARMS UPPER NORTH ISLAND 5

6 6 WOOLS OF NEW ZEALAND - STRATEGIC REVIEW 2016 THE ROCK To enhance market returns, create market urgency, improve efficiencies and price certainty. 1 2 DIRECT-2-SCOUR The Wools of New Zealand Direct-2-Scour (D2S) model was developed to provide a route for all Wools of New Zealand supplied wool to enable receival, weighing, testing and management through to an approved forward contract or sales option On 1st August 2016 Wools of New Zealand launched an improved D2S model aimed at creating increased efficiency, cost effectiveness, and competitive tension to provide more value for our growers wool. STAPLE STAPLE is an annual wool production indicator for Wools of New Zealand It is an essential planning tool to enable Wools of New Zealand to build a more accurate view of our growers supply profiles STAPLE provides important information to align the requirements of our brand partners with growers by wool type and supply timings Growers who provide information via STAPLE gain preferential access to supply contracts and immediate communication on contract supply option specifications. Highlights of the improved D2S model include: A new service provider in Cavalier Woolscourers that independently handles, tests and appraises the wool with consolidation at the scour store providing logistics efficiencies through two central locations: Timaru and Napier A new wool IT management system delivering efficiency through the automated transmission of information providing faster reporting to growers of appraisal, valuation and sale results Expanded wool handling services including the grouping of small lines and oddments to make these lines more commercially viable, and the ability to hold part consignments of wool in non-peak periods saving additional testing fees. NEW PRODUCT DEVELOPMENT TECHNOLOGICAL INNOVATION MARANGAI PALLISER RIDGE KOROTAWA LOWER NORTH ISLAND LOWER NORTH ISLAND LOWER NORTH ISLAND

7 WOOLS OF NEW ZEALAND - STRATEGIC REVIEW 2016 WOOL SCHEDULE SALES OPTIONS 3 Wools of New Zealand is evaluating the roll out of a weekly Wool Schedule with leading wool broker Segard Masurel The wool schedule has been developed to offer growers a different sales option which provides a degree of price certainty before the wool leaves the shed. FORWARD CONTRACTS Market driven forward contracts remain fundamental to our strategy and we continue our in-market effort to provide increased forward contract options to our growers A strength of the Wools of New Zealand model is our ability to connect with the customer in-market and build a strong understanding of their business and the related wool requirements for developing their products This insight is reflected in the specifications that are developed for customer centric forward contracts The forward contracts provide both the customer and the grower with a degree of certainty through a commitment to a known wool type, volume and price for a future point in time WOOL TENDER Our 100% New Zealand Grower Ownership model is making Wools of New Zealand more relevant to customers as they seek assurance about the origin of the wool and are concerned about surety of supply into the future. UNIQUE SUPPLY PROGRAMMES As part of the improved D2S model, Wools of New Zealand developed the new Tender sales platform The tender has been designed to move growers wool to market in an efficient manner, to create urgency and stimulate sales through a competitive process To date the tender has received strong support from purchasers Growers are provided their assessment and a valuation based on most recent market intelligence Wools of New Zealand will determine at its discretion whether to accept or reject any bids for the wool Early signals demonstrate strong support from purchasers who represent over 90% of the New Zealand export market. ORITAIN ALEXANDER PASTORAL MANGAPOIKE OKEPUHA EASTERN NORTH ISLAND EASTERN NORTH ISLAND EASTERN NORTH ISLAND 7

8 8 WOOLS OF NEW ZEALAND - STRATEGIC REVIEW 2016 THE GAME CHANGE To build demand and add value through meaningful and differentiated offerings. 1 DIFFERENTIATED SUPPLY PROGRAMMES With our direct line of sight from the market to the farm we are able to provide clear signals to our growers that create a point of difference for our wool in the market As we move forward the signals are that customers and consumers are becoming more discerning with regards to the origin and the manner in which the wool has been grown Through our Wool Integrity Programme and the Wools of New Zealand and LaneveTM brands we are well positioned to adapt to the evolving trends in the market and secure future business A great example of meeting the market with adaptation has been the ability of Wools of New Zealand growers to comply with the exacting EU Ecolabel criteria which has provided access to the EU Ecolabel lambswool contract With the advancements we have made in the area of eco-credentials, we now have the ability to expand this offering into other wool types. 2 NEW PRODUCT DEVELOPMENT Wools of New Zealand is focused on a product led strategy we work with manufacturers and brand partners to push the boundaries, and together develop exciting new products that contain authentic Wools of New Zealand wool to support our branded business model The networks that we have developed both in New Zealand and in markets across the scientific and commercial communities are enabling us to build connections more quickly with targeted partners, creating new value chains that pull our wool through into areas where we were not operating before To this end Wools of New Zealand is working closely with New Zealand Trade & Enterprise to evaluate new channels to market particularly in Europe, the UK, the USA and China. WNZ-LED VALUE CHAINS KITEQ COLERIDGE DOWNS BLUE CLIFFS AWARIMA UPPER SOUTH ISLAND CENTRAL SOUTH ISLAND CENTRAL SOUTH ISLAND

9 WOOLS OF NEW ZEALAND - STRATEGIC REVIEW INVESTING IN NEW TECHNOLOGIES BRAND DEVELOPMENT Wools of New Zealand has a number of game changing innovations which are set to deliver compelling points of difference, presenting exciting product opportunities for our partners that include the following new technologies: Wools of New Zealand shareholders own the company and the brand. Our role is to build a stronger brand proposition, including new technologies, in order to grow demand and add value to their wool and ultimately their business GlacialXT a new scour process that significantly enhances the whiteness of our wool, providing a more consistent and clean substrate for new product development The Wools of New Zealand brand is wellrecognised globally and has a positive perception with customers, representing the highest quality in strong wool products Kiteq a unique dye process that provides increased colour opportunities coupled with significantly improved light fastness that is on par with synthetic products Work is underway to refine both the Wools of New Zealand and LaneveTM brands to strengthen the connection with our growers and the source of our great fibre Wools of New Zealand has moved into a new phase and now focuses on the benefits of our brand, our wool and our innovations for the exclusive advantage of our commercial partners who carry our wool forward into the market An updated and refreshed Wools of New Zealand brand will be developed in 2017 and will only apply to products that contain wool from Wools of New Zealand growers This significant change is necessary to build more value into our growers wool and our partners offerings in the market. 4 Oritain - an isotope technology, Oritain allows us to prove the authenticity and provenance of products that contain Wools of New Zealand wool and therefore protect our partners brand and ours from false claims and fraudulent activity Our key manufacturing partners are enthusiastic about the design potential and product performance attributes that GlacialXT and Kiteq offer and are eager to work with us to get to market with innovative new products. GLACIALXT WE ARE READY TO OKAWA FORK FARM STONEHAVEN CENTRAL SOUTH ISLAND LOWER SOUTH ISLAND LOWER SOUTH ISLAND 9

10 THE ROCK DIRECT-2-SCOUR STAPLE Wool Store THE GAME CHANGE At Canterbury Wool Scourers Timaru. Left to right from Wools of New Zealand; Mark Shadbolt, Rosstan Mazey, Jason Everson DIFFERENTIATED SUPPLY PROGRAMMES

11 INVESTING IN NEW TECHNOLOGIES BRAND DEVELOPMENT Kiteq Suitcase made from upcycled wool Boss Design Group acoustic room featuring Camira Fabrics Ltd Blazer fabric, which uses Wools of New Zealand lambswool INTEGRITY PROGRAM FOR NEW ZEALAND SHEEP FARMERS NEW PRODUCT DEVELOPMENT Camira Fabrics Ltd fabric range Synergy includes Wools of New Zealand lambswool Wools of New Zealand Pom design board

12 NEW ZEALAND UNITED KINGDOM GROWER LIAISONS Wools of New Zealand Limited PO Box 16819, Hornby Aviation House, Building 1, Level 1, 12 Orchard Road Christchurch Airport New Zealand Phone Fax info@woolsnz.com USA AND CANADA Wools of New Zealand UK Ltd Wools of New Zealand Centre of Wool Excellence, 29 Little Lane, Ilkley West Yorkshire, LS29 8HX United Kingdom Phone +44 (1943) Fax +44 (1943) info@woolsnz.co.uk CHINA Jan Ross Upper North Island jan.ross@woolsnz.com Hannah Coop Eastern North Island hannah.coop@woolsnz.com Wayne Baxter Lower North Island wayne.baxter@woolsnz.com Wools of New Zealand PO Box Marietta GA USA Phone +1 (770) Fax +1 (770) info.us@woolsnz.com Wools of New Zealand China Rm. 107 Golden Tower, No 1 Xibahe South Road Chaoyang District Beijing China Phone Fax info.china@woolsnz.com Julie Graham Upper South Island julie.graham@woolsnz.com Sharyn Miller Central South Island sharyn.miller@woolsnz.com Bridget Russell Lower South Island bridget.russell@woolsnz.com