British Ceramic Tile Company Update

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British Ceramic Tile Company Update
22nd May 2007 Prepared by Mike Kelly
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BCT Ltd The journey so far

• Production commenced in August 1999. Backed by
  long-term private shareholders. 40 million
  investment.
• World class - state of the art manufacturing
  plant, based in Devon, adjacent to raw materials
  and the market.
• Primary objective to capitalise on growing
  consumer demand currently met by imported
  product due to declining UK manufacturing
  base.
• Producing approx. 10,000 m² of wall tiles per day.

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Our Heritage

• The old Candy factory, founded by Frank Candy in
  the 1860s, provided the spring board for over
  130 years of tile production in Devon a
  tradition which continues to the present day in
  our state of the art factory built on the same
  site in 1997.

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Our Future
Today
Planned
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BCT Accolades

• Only company to have won the Tile Associations
  Wall Tile of the Year award 2 years in
  succession
• (2005 and 2006)
• Tile Supplier of the Year 2006 at the National
  Flooring Awards voted by readers of Retail and
  Contract Floors publications

• Awarded the Millennium Business Award for
  Leadership and Environment in creating a
  greener factory and committing to sustainable
  working practices.

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BCT The Future

• We firmly believe there is a future for
  manufacturing in Britain.
• BCT has built the countrys most advanced tile
  factory.
• We are embarking on a two-year 10 million
  factory expansion, trebling our capacity to 10
  million m2 per annum.
• We aim to be cost leaders in our market and will
  win high volume business, whilst continuing to
  add value through carefully selected designer
  brands.

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BCT Ltd - Our Strengths

• A growing, forward thinking business.
• The best of British, designed for UK homes
  customer focused
• Direct approach short supply chain
• customer feedback and price competitiveness
• Proximity to high quality raw materials (white
  body)
• Category management understand customer needs
• Fully integrated design and manufacturing
  facility
• rapid implementation of new designs (speed to
  market)
• added value without added cost

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Structure and strategy

• 1 corporate image BCT Ltd (British Ceramic Tile)
• focus on best of British (design, value,
  environment)
• 1 role specialised sales force
• 5 core product Collections
• Candy, Laura Ashley, Hemingway, BCT and Own Brand
• New and innovative approach not duplication
• 4 major sales channels
• Direct to contractors, independent retailers,
  house developer fixers and retail multiples

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The Candy Collection

• The Candy range is specifically targeted at
  professionals within the UK house building,
  contract and retail sectors.
• It is designed to meet the needs of these
  customers for attractive, desirable, good
  quality, value for money tiles, which suit
  current UK lifestyle and interior design
  trends.
• National Sales Force backed up by Area Sales
  Coordinators and Business Development Executives
  to guarantee good service.

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Production

• BCT Ltd uses the latest technology to deliver
  high quality yields through a traditional twice
  fire process. We manufacture at 95 first quality
  levels.Industry leading!
• Tiles are transported by robots and patterns
  applied by Rotocolor , enabling us to achieve
  random pattern effects on field tiles (avoiding
  repeats common with screen printing).

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The Environmental Challenge

• We are committed to reducing our carbon footprint
  and
• impact on the environment.
• Local sourcing of raw materials cuts transport
  miles and pollution
• Broken tiles and tile waste crushed and recycled
  back into the clay

• Waste packaging and card recycled locally
• All water used in the process and rainwater is
  recycled
• All heat emissions recycled
• Aiming at 20 improvement in energy efficiency

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Operations and Supply Chain

• Service Options to cater for all customer
  requirements.
• Full container deliveries to provide economies of
  scale.
• Room lot orders for independent retailers
  anywhere in the UK within 3 days.

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Marketing Update

• Majority of consumers prefer safe options due
  to housing market
• White still dominant
• Natural stone key growth area driven by
  aspirational products at top end of market
• Classical products continue to sell
• Mosaics remain popular

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Total UK Ceramic Tile Market Volume

• The tile market volumes have been growing
  steadily over the last few years
• The wall tile market has been increasing
• The floor tile sector has been increasing more
  rapidly than the market as a whole

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Forecast for the next 5 years

• The floor tile market is forecast to grow
  strongly, 35 volume
• The market for wall tiles is forecast to increase
  by 2 in volume

Source Trade and MSI forecasts
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BCT Summary

• BCT will have one of the most advanced tile
  factories in the world.
• BCT will be Britains biggest tile
  manufacturer.
• Direct from our factory is the way for BCT to
  beat off importers, whos long supply chains and
  lead times make their products more expensive and
  their service less efficient.
• New product development and genuine innovation
  (not duplication) will remain our primary focus.

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Why Choose British Ceramic Tile?

• Good quality EU and British Standards
  compliant
• Continuity of supply advanced logistics and
  supply chain operations
• Growing business investing in UK
  manufacturing
• Genuine innovation lead the market
• Competitively priced
• Dedicated after sales service and support