Specialist
Former VP at Dematic Group Ltd
Agenda
- Competitive update for automated warehouse solutions, including SSI Schaefer, Vanderlande and Dematic (ETR: KGX)
- Order intake and pricing outlook growth across end markets
- Micro-fulfillment market and Dematic solution launch 4. Operational requirements in shift to higher quantity of smaller projects
Questions
1.
What is your view on order intakes across markets for these supply chain solutions businesses?
2.
How would you characterise the changing attitudes of companies towards investment in fulfilment solutions? Over what time period have you observed a shift from hesitant CAPEX spend to realising they need to catch up with Amazon?
3.
How long do you expect that CAPEX cycle to be, with the shift to more micro-fulfillment centres to catch up with one-day delivery demands?
4.
How would you expect the CAPEX cycle on the core supply chain solutions that Dematic offers to develop over the next two years?
5.
Do you think Dematic’s 35% EBIT growth YTD is sustainable?
6.
How would you describe the fulfilment CAPEX trends across the key end markets – e-commerce, apparel, grocery, food and beverage?
7.
Presumably the penetration of automation within warehouses in e-commerce is already fairly high. How does penetration offset automation change across other end markets, and therefore determine the growth attainable on top of market growth?
8.
To focus on the retail and grocery segment where there is highest investment, who out of SSI Schaefer, Dematic and Vanderlande do you think has the best end-market-specific product for supply chain solutions?
9.
To what extent would you say Knapp is taking market share from Dematic?
10.
Which of the incumbent players – Dematic, SSI, Schaefer, Intelligrated and Vanderlande – do you think Knapp has been taking the most market share from?
11.
How would you gauge the size of the total addressable market for micro-fulfillment, and which end markets do you think it would appeal to?
12.
What do you think is a realistic CAGR for this market?
13.
What competitive advantage do you think Knapp might have over Dematic in the short-to-medium term? To what extent does a business require established partners or a track record?
14.
How do you think Dematic might be disadvantaged by being the second mover into the market?
15.
How would you compare Dematic and Knapp on technology? How could the competitive landscape change if this Meijer installation happens?
16.
Do you think Dematic perhaps rushed to launch this product and there might be issues from that? Do you think this is just a lower barrier to entry which means that a lower expected ROIC at scale?
17.
To what extent are there EBIT pressures in the core shipments and material handling? Do you think Dematic’s fairly strong EBIT numbers in 2019 could turn around if there is a headwind here?
18.
How do you view the ability to increase pricing in the services business with these new competitive dynamics happening in the micro-fulfillment space with the threat to shift over to Knapp if they don’t reduce pricing in the servicing business?
19.
What proportion of Dematic’s existing install base would you estimate has been upsold the increased software packages and what proportion is still available for upselling?
20.
Where do you think Dematic’s new service EBIT is coming from, if not from software?
21.
How do you view the operational requirements for Dematic in light of this shift to micro-fulfillment and higher quantity of smaller projects, as opposed to historically being a small company with very large projects?
22.
Amazon as a customer accounts for around one-quarter of Dematic’s revenue and it has not performed as well as expected recently, with a large CAPEX cycle coming in and leading to its decrease in net income, and some investors questioning this level of CAPEX. To what extent do you think Amazon’s pressures feed through into more pressures on the pricing of Dematic’s new installs?
23.
To what extent do you think Knapp is trying to capitalise on the Amazon business opportunity?
24.
If Amazon is becoming more conservative, how does that impact the Dematic’s share of the Amazon business?
25.
Would you say that Amazon business is very stable, but very conservative in the sense it would no longer work with small suppliers?
26.
To what extent do you think AutoStore is taking customer priority for Dematic?
27.
What proportion of Dematic’s sales does the MGTP [Modular Goods-to-Person] solution account for, and how would you assess its performance in the context of AutoStore’s evolution?
28.
What are your views on AutoStore Black Line as a threat to Dematic’s core sales, and to what extent would you expect salespeople to lead with Black Line over other parts of Dematic’s portfolio?
29.
How do you think the increased use of AutoStore-type products correlates with a decreased need for the forklift market?
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