Frost & Sullivan: Explosion of OEM’s Investments in Automotive Connected Services in Brazil and Mexico

— Combined telematics subscriber base in both countries to reach over 1.6 million by 2020

SAO PAULO, Aug. 12, 2014 /PRNewswire/ — Brazil and Mexico have a strong and well-developed automotive aftermarket, with service providers (SPs) offering stolen vehicle tracking (SVT), monitoring and immobilization solutions. However, passenger vehicle original equipment manufacturers (OEMs) are looking to go beyond the existing basic service offerings to create new revenue streams and boost their presence in these countries. Connected services are expected to play a vital role towards brand differentiation and maintaining market share in an increasingly competitive automotive market.

Automotive Connected Services.

Automotive Connected Services.

(Photo: http://photos.prnewswire.com/prnh/20140811/135074)

New analysis from Frost & Sullivan, Strategic Analysis of the Automotive Connected Services Market in Brazil and Mexico, finds that the total number of telematics service subscribers in Brazil will go up from 4,800 in 2013 to nearly 1,300,000 in 2020. Mexico’s telematics subscriber base, on the other hand, will grow from 2,000 in 2013 to approximately 330,000 in 2020. By the end of the forecast period, automotive connected services is expected to penetrate between 26 to 28 percent of new cars sales in Brazil and approximately 23 to 25 percent of new cars sold in Mexico. The study covers automotive connected services offered by vehicle OEMs and independent aftermarket solutions.

“In Mexico, the provision of automotive connected services in vehicles from General Motors, and the expected introduction of these services by other premium vehicle OEMs, will propel the market,” said Frost & Sullivan Automotive & Transportation Industry Analyst Yeswant Abhimanyu. “Likewise, the market in Brazil will expand as more vehicle OEMs venture towards offering telematics services.”

However, the high cost of vehicles in markets such as Brazil could dampen sales volumes, considering that over 60 percent of cars sold are from the price-sensitive A- and B- segments. Also, since purchasing vehicle insurance is not mandatory in Brazil, insurance-coupled telematics services might not find much acceptance among cost-conscious customers. As customers begin to realize the value of insurance in the event of car theft and other situations, insurance-coupled telematics offerings will grow in popularity.

The continued delay in the implementation of the Conselho Nacional de Transito (CONTRAN) 245 mandate that requires the installation of anti-theft equipment in all new vehicles in Brazil is also understood to be slowing market development. In light of the different possible scenarios, vehicle OEMs and other participants along the value chain are unsure whether to introduce telematics services just yet. This, along with a debate regarding the right mix of automotive connected services to offer customers, is slowing market introduction and current potential.

“Partnerships among vehicle OEMs and SPs are expected to pave the way for the advancement of the automotive connected services market in Brazil. While vehicle OEMs can take advantage of the bandwidth and scope that SVT and immobilization service providers have in the country, the SPs can move towards complete, high-end telematics service providers (TSPs),” noted Abhimanyu. “Vehicle OEMs might even extend their partnerships to hardware manufacturers and other value chain participants, using innovation and flexibility as key decision-making criteria to choose appropriate partners.”

SPs across Mexico could also consider partnering with vehicle OEMs to broaden their service offerings and thereby attract more customers. Focus should lie in providing advanced telematics services such as turn-by-turn navigation and automatic crash response.

Strategic Analysis of the Automotive Connected Services Market in Brazil and Mexico is part of the Automotive & Transportation (http://www.automotive.frost.com) Growth Partnership Service program. A complementing study, Voice of the Consumer (End Consumers – Car Owners) that looks at the consumer’s willingness to pay for connected services, the features of interest, and the effects of the smartphones, is also in progress.

For more information on this and related studies, please email Francesca Valente, Corporate Communications, at francesca.valente@frost.com.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
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For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Strategic Analysis of the Automotive Connected Services Market in Brazil and Mexico
NB81-18

Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54-11-4777-5300
F: +54-11-4777-5300
E: francesca.valente@frost.com

http://www.frost.com

Photo – http://photos.prnasia.com/prnh/20140812/8521404521

Resource to Unearth Emerging Circular Economy Innovators with the ‘Launch Pad’

LONDON, Aug. 11, 2014 /PRNewswire/ — Set to uncover the next generation of UK entrepreneurs, experts and disruptive innovators needed to enable businesses to adopt a circular economy approach, Resource (http://www.resource-event.com) is calling for innovative small companies and start-ups to join its Launch Pad initiative.

The Launch Pad has 10 subsidised spots for circular economy businesses and enablers to pitch their technologies, processes, platforms, service or offering to over 11,000* professionals looking to secure future materials sources and develop a model for profit in a circular economy.

Already confirmed on the Launch pad at the world’s leading event for the circular economy are WARPit and Bag:ReBorn. WARPit are the developers of a resource reuse network allowing staff to share (give away or loan) surplus physical resources within their organisation, and between organisations.

WARPit Founder Daniel O’Connor said: “As a company helping the public and private sector move towards zero waste, investing in The Launch Pad at Resource was a no-brainer for us. As a young business set up just three years ago we do not have the marketing reach of larger companies, so the Launch Pad will enable us to have a presence in front of thousands of circular economy players under one roof.”

Also taking part are Bag:ReBorn, a specialist packaging design company motivated by reuse and prevention. Designed to extend the life-cycle of two of the most short-lived plastic products on the planet; Bag Re:Born is an innovative waste/resource collection sack that is cleverly disguised as a reusable shopping bag.

Commenting on joining Resource’s Launch Pad, Richard Simmonite, the award-winning innovator behind Bag Re:Born said: “As a company, Bag Re:Born shares many of the core values of The Resource Event. We believe in disruptive innovation and supporting the circular economy; values inherent in our company slogan – ‘no excuse for single use’.  We see Bag Re:Born playing a key role in reducing dependence on raw materials and changing consumer attitudes towards waste and reuse. As part of The Launch Pad, we look forward to working with like-minded companies towards a more sustainable future.”

With one in five British mid-sized businesses now classified as “high growth” and start-up activity on the rise in the UK, it is critical that business owners learn and adopt circular business models. According to the Ellen MacArthur Foundation, ’emerging innovators’ in the form of start up or small businesses hold the key to unlocking innovation barriers to circular progress. 

Stephen Gee, Event Director, Resource said: “SMEs are the lifeblood of Europe’s economy, but both lack of available finance and knowledge currently prevent around fifty percent of business owners adopting circularity and exploiting the commercial opportunities it represents. The Launch Pad has been set up both to help SMEs break into the market and bring new thinking and disruptive innovation to the masses.”

The Resource Event; takes place 3rd to 5th March 2015 at London’s ExCeL. If you are keen to exhibit on the Launch Pad, please contact David Bradbury, Key Account Manager, Resource on M: +44(0)7920-547874, T: +44(0)20-7921-8213 or E: David.Bradbury@ubm.com

Media and entertainment CFOs shift their primary focus from cost-cutting to growth, as economic confidence improves

— Concerns over economic uncertainty drops significantly for the first time in six years among CFOs of the largest media and entertainment companies

— Digital presents best opportunities for growth, and data analytics will provide insights to achieve strategies

— The US continues to be the most attractive market for investment, but emerging markets present opportunities for growth

NEW YORK, Aug. 11, 2014 /PRNewswire/ — The media and entertainment industry (M&E) has moved past the economic uncertainty of the global recession and shifted their primary focus from cost-cutting to growth, according to EY’s survey of CFOs of leading global M&E companies. The report, It’s Showtime! Digital drives the agenda, data delivers the insights (www.ey.com/ME_CFOstudy), which surveyed 50 large global M&E companies, shows CFOs are no longer worried about the global recession and are well-positioned to grow their companies through capitalizing on digital opportunities and through investments in technology, digital talent and infrastructure, as well as acquisitions and other deals. Only 26% of senior executives surveyed said global economic uncertainty would be a challenge during the next three years, compared to 62% two years ago, showing a dramatic decrease in concern over the economy.

John Nendick, Global Media & Entertainment Leader at EY, says:

“The CFOs told us in no uncertain terms that the economy is no longer an obstacle and now is the time for media and entertainment companies to invest in growth and focus on building their businesses. The industry is now poised to deliver on the promises it has been making the past several years but has been unable to achieve because of the economy. The CFOs recognize the recession is over and it’s showtime.”

Despite the opportunities for growth, the industry still faces many challenges. A majority of CFOs identified the greatest obstacles for the industry during the next three years as technology and platform disintermediation (64%), and an inability to persuade consumers to pay fair value for content (58%). Still others identified structural and regulatory uncertainty (42%) and reductions/reallocations of marketing budgets (26%) as major challenges for the future.

CFOs are positioning for growth and they see data analytics as the means to achieve it. They are placing significant emphasis on data to improve decision-making, systems and processes. But much work remains to be done. While 59% of CFOs feel their companies successfully use data to respond to and upsell existing customers, only 33% said their companies do a good job of using data to generate new business. And while only 39% of CFOs believe their organization is good at sharing data, 58% indicated that sharing data between business units would improve their organization’s overall effectiveness. 

Conversely, as data analytics become more essential to business operations, growing concerns over effectiveness and data overload also increase. The industry expects its data storage to increase from 1,100 exabytes of available data in 2010 to 8,000 exabytes by 2015. CFOs expressed concern over the increasing difficulty of identifying any meaningful insight within this massively expanding amount of data. 

Other key findings of the survey include:

  • Top priorities for the year ahead are the evolution of digital and online distribution (74%), cost reduction and business efficiencies (34%), creatively differentiating content (32%), extending brands globally (32%) and growth in new market segments (30%).
  • Emerging markets are no longer the top geographic focus for growth; 72% of M&E companies indicated their focus is on existing/core markets.
  • Seventy-two percent chose interactive media businesses as being best positioned to evolve and thrive in the future, followed by cable television networks and channels (42%), conglomerates (36%), film and television production (30%) and content and information services (30%).
  • The top actions identified to make companies more effective are attracting/retaining talent (58%), improved IT capabilities (42%), deeper understanding of market trends, customers and competitors (38%) and getting new products to market faster (30%).
  • CFOs prefer deals that give them either complete or majority ownership (61%) instead of making investments or having a minority interest (34%).
  • The average deal value during the first half of 2014 was US$939m, compared with US$220m in 2013 and US$157m in 2012, with cable operators driving the rise.

Howard Bass, EY’s Global Media & Entertainment Advisory Services Leader says:

“Recruiting and retaining talent is a significant concern for almost every CFO we surveyed. All agreed that talent, as well as establishing better collaboration between teams and different business units, are the most important factors for efficiently running their companies. The right talent means finding people who have the technical skills but are also digital savvy.”

About the survey
The survey was conducted among 50 CFOs of some of the largest global media and entertainment companies, headquartered in 10 countries and representing almost half a trillion dollars in media and entertainment revenue. The survey spanned industry sectors including filmed entertainment; broadcast and cable networks; music/radio; media conglomerates; advertising; internet and interactive media; publishing and information services; and cable/satellite distributors. Thirteen percent of companies surveyed have annual revenue greater than US$25 billion; 9%, US$10-$25 billion; 17%, US$5-$9.9 billion; 30%, US$1-$4.9 billion; 13%, US$500-$999 million; and 18%, less than US$500 million.

About EY’s Global Media & Entertainment Center
EY’s Global Media & Entertainment Center brings together a high-performance, worldwide team of media and entertainment professionals with deep technical experience in providing assurance, tax, transaction and advisory services to the industry’s leaders. Our network of professionals collaborate and share knowledge around the world, to provide exceptional client service and leverage our leading market share position to provide you with actionable information, quickly and reliably.

About EY
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.

Contact:

Steve Honig

Katherine Vogt

The Honig Company, LLC

EY Global Media Relations

+1-818-986-4300

+1-973-738-0264

press@honigllc.com

Katherine.Vogt@ey.com

DKSH Holding Ltd. Announces Half-Year Report 2014

Weakness in Asian Currencies Overshadows Solid Growth in Local Markets

ZURICH, Aug. 11, 2014 /PRNewswire/ —

  • Net sales growth of 6.7% at constant exchange rates
  • Depreciation of Asian currencies impact results negatively by 9.6%
  • Operating profit in a challenging market environment, at constant exchange rates, slightly above last year’s level
  • Impact from political unrest in Thailand more profound than expected at the beginning of the year
  • DKSH confirms outlook

Key figures of DKSH (in CHF millions)

At constant

exchange rates[1]

In CHF

In CHF

H1 2014

       Change in %

H1 2014

Change in %

H1 2013

Net sales

5,071.8

6.7%

4,618.4

(2.9%)

4,754.5

Operating profit (EBIT)

144.8

1.4%

131.4

(8.0%)

142.8

Profit after tax

99.8

(4.9%)

91.7

(12.6%)

104.9

Free cash flow

166.7

(2.4%)

136.7

(20.0%)

170.8

Earnings per share (in CHF)

1.41

(11.9%)

1.60

Number of employees[2]

27,159

1.7%

26,693

[1] Against the backdrop of substantial foreign exchange rate depreciations and to make operating performance comparable, DKSH has since the full-year 2013 results communicated figures as well at constant exchange rates. For constant exchange rates, the 2014 figures have been converted at 2013 exchange rates

[2] As of December 31, 2013

DKSH (SIX: DKSH), the leading Market Expansion Services provider with a focus on Asia, continued to grow in the first half-year of 2014 at constant exchange rates in a challenging market environment. All Business Units and major countries positively contributed to net sales growth.

Net sales grew by 6.7% at constant exchange rates to CHF 5,071.8 million. Organic growth was 6.0%, while just 0.7 percentage points of net sales growth resulted from M&A activities. The depreciation of Asian currencies impacted net sales in total by 9.6%. Reported in Swiss francs, net sales accordingly reached CHF 4,618.4 million.

Despite the challenging political situation in our main market, Thailand, operating profit before interest and taxes (EBIT) at constant exchange rates increased by 1.4% and reached CHF 144.8 million. Reported in Swiss francs, EBIT accordingly reached CHF 131.4 million. Political unrest in Thailand was more profound and enduring than expected at the beginning of the year, resulting in negative economic growth. Over the past months, this caused a temporary lower demand for consumer goods, higher-margin luxury and lifestyle products as well as reduced industrial investments. The military takeover at the end of May, however, helped to stabilize the situation.

Profit after tax (PAT) has been impacted by profit hedging costs and accordingly reached CHF 99.8 million at constant exchange rates. Reported in Swiss francs, PAT accordingly reached CHF 91.7 million.

Although net sales grew in the first six months of 2014, free cash flow achieved, at constant exchange rates, CHF 166.7 million thanks to sound working capital management and thereby almost reached the high level of last year.

Dr. Joerg Wolle, President & CEO of DKSH, commented: “Despite the challenging market environment, DKSH again reported solid growth in numerous markets. This was achieved on the back of our robust business model and the rigorous implementation of our strategy.”

DKSH’s strategy for sustainable, profitable growth is centered on growing organically, through expanding business with existing clients, multiplying success stories from country to country and new business development, complemented by strategic bolt-on acquisitions.

DKSH continued to invest in the skills and training of its employees, its most important asset. At the end of June 2014, DKSH employed 27,159 specialists worldwide, representing an increase of 466 people or 1.7% compared to the year-end of 2013.

Confirmation of outlook

Commenting on the outlook Dr. Joerg Wolle said: “From today’s perspective, we expect to achieve a 2014 result which is above the record year 2013. This assuming constant exchange rates. The increasingly difficult political situation in our main market Thailand has temporarily resulted in lower demand for consumer goods and in reduced investment activities. While the current situation does not allow for providing an accurate forecast for the year, we are cautiously optimistic. This based on the recently improved consumer confidence index and increased growth forecasts for the Thai economy. The recent weeks can be considered as a potential trend reversal after thirteen months of continuously declining consumer confidence.

The growth outlook for our markets and the attractiveness of our business model remain very good. Because of increased uncertainty and complexity in some Asian markets, clients are increasingly outsourcing sales and distribution of their products in Asia to transparent and reliable partners like DKSH. Demand for our services therefore continues to rise. With our strongly diversified and scalable business model, DKSH is ideally positioned to benefit from the growing middle class, rising inner-Asian trade and increased outsourcing to specialist services providers like DKSH.”

Building on these firm foundations and based on current market views, as well as constant exchange rates, DKSH is confident of achieving over a three-year time frame up to 2016 net sales of around CHF 12 billion at a compound annual growth rate (CAGR) of 8%. Within the same time frame EBIT is expected to grow at a CAGR of 10% to a level of around CHF 380 million, which should translate into profit after tax of some CHF 270 million.

Analyst and investor conference/webcast

The live webcast of today’s media conference will be held at 9:30 a.m. CET (in German) and the live webcast of today’s analyst and investor conference will be held at 11 a.m. CET (in English). A recording of the webcast will be available on DKSH’s website.

Half-Year Report

The Half-Year Report 2014 is available for download at: Half-Year Report 2014

To see the full version of this release, including financial tables, click here: http://photos.prnasia.com/prnk/20140811/8521404509-b

About DKSH Group

DKSH is the leading Market Expansion Services provider with a focus on Asia. As the term “Market Expansion Services” suggests, DKSH helps other companies and brands to grow their business in new or existing markets.

Publicly listed on the SIX Swiss Exchange since March 2012, DKSH is a global company headquartered in Zurich. With 735 business locations in 35 countries — 710 of them in Asia — and 27,200 specialized staff, DKSH generated net sales of CHF 9.6 billion in 2013.

The company offers a tailor-made, integrated portfolio of sourcing, marketing, sales, distribution, and after-sales services. It provides business partners with expertise as well as on-the-ground logistics based on a comprehensive network of unique size and depth. Business activities are organized into four specialized Business Units that mirror DKSH fields of expertise: Consumer Goods, Healthcare, Performance Materials, and Technology.

With strong Swiss heritage, the company has nearly a 150-year-long tradition of doing business in and with Asia, and is deeply rooted in communities and businesses across Asia Pacific.