NEWS 'N VIEWS FROM THE GROUP | AUGUST 2018 - NZPM Group

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NEWS 'N VIEWS FROM THE GROUP | AUGUST 2018 - NZPM Group
NEWS ‘N VIEWS FROM THE GROUP | AUGUST 2018

CHAIRMAN’S UPDATE
During the first week of August Rob Kidd and I completed our annual NZPM/Plumbing World
Roadshows, and it was fantastic to see nearly a third of our shareholders across the country attend
these events. Not only were we able to give those members an update on our co-operative and
strategic focus, but we also provided some insights around the investments that we are making in the
business, ranging from our branches through to our digital and technology programme.
One of those subjects that we’ve touched on in the last two years has been the need to make specific
strategic property investments, and we gave some examples in Christchurch and Auckland where
developers are threatening the locations of one or two of our key branch sites. This proved to be the
case in Christchurch recently where the lease for our Papanui branch was due to expire in early 2019,
and the owner was looking to sell the site for redevelopment.
Right in the heart of Christchurch, Papanui is a key strategic location for Plumbing World, so the Board
has taken the initiative to purchase the site, and we’re now working with the former owner to complete
their seismic upgrade work that was part of the purchase price. Once that work is complete we expect
that Papanui will become part of our future branch upgrades programme that we are undertaking to
improve and modernise all of our branches across the country.
Over the course of this year’s roadshows I’ve also been fortunate to have attended a couple of our
Young Plumber of the Year regional finals, and I must say that I’ve been really impressed by some of the
talent that is coming through our industry. With many of our baby boomers heading towards retirement,
these young men and women are the future of our co-operative, and it’s great to see them competing
to be the best amongst their peers.
During July we also completed the applicant interviews for our 2018 NZPM Future Governance
Programme that we successfully trialed last year. This year we’re aiming to select two shareholder
candidates who are interested in the future governance of the co-operative, and who also display
the core attributes for development and mentoring as a potential future director, and the successful
applicants will be announced at this year’s AGM.
July also saw the completion of Linda Robertson’s term as an Appointed Director on the NZPM Board,
and we are now recruiting to fill this position. During her term, Linda contributed positively to the
expertise of the Board, and we wish her well for the future. From a board perspective, we expect the
future appointed director will primarily continue to fulfill a finance role, however we are also looking
for a person with additional expertise in the digital technology or logistics fields who can add further
capability to the governance of the co-operative.
And finally, with the recent demise of a number of major players in the construction industry comes
a salient reminder for all our members to be vigilant with your cashflow and debtors. With a buoyant
construction market, it’s very easy to be focused on the growth part of your business, however the
demand this often places on cashflow is enormous, and many a plumbing business has been caught
out over the years by slow payments of progress claims and retentions.

Kind regards,

John DeBernardo
Chairman
NEWS 'N VIEWS FROM THE GROUP | AUGUST 2018 - NZPM Group
A MESSAGE FROM PLUMBING WORLD’S GENERAL MANAGER
     John and I have now completed this year’s Shareholder Roadshows and I’d like to add my
     thanks to all of you who were able to take time out of your busy schedules to hear how
     the co-operative is performing and what some of our future plans are as well.
     One of the key subjects I presented on was how Plumbing World will leverage off our
     strong “bricks and mortar” store base across the country with digital and technology
     opportunities to help grow the co-operative to the next level.
     Implementation of various customer interrelating technologies will provide the
     business protection against competitive online offers (such as Plumbing World’s new
     e-commerce website) and improve our efficiencies and opportunities for the trade
     (e.g. the Plumbing World Trade Purchasing App, the Plumbing World Trade Portal online
     purchasing capability, the Metrix product specification App and the Plumbing World
     integrated quoting system).
     To help fast track the dozen or so current digital and technologies projects we are
     developing along with the future opportunities we have employed a new Digital
     and Technologies Manager (Mark Gregan) who started with us in early August.
     Along with Mark we look forward to continuing the technology journey and
     providing you more and efficient ways of being able to deal and transact
     with us.
     I would also like to announce that we have recruited our new National Sales
     and Operations Manager – Richard Barnes. Richard has spent most of his
     career in the wider building industry and brings to Plumbing World real
     strengths in strategic sales management, planning and execution along with
     operational excellence at senior national levels drawn from large businesses.
     Richard has worked in both regional and national sales and operations roles
     at Allied Concrete, Firth Industries, Golden Bay Cement and Laminex NZ.
     Based in Auckland, Richard will be joining Plumbing World on the 3rd of
     September.
     Thank you for your ongoing support of Plumbing World – we really do
     appreciate it.
     Regards,
     Rob Kidd
     General Manager, Plumbing World

     Reminder.
     Exclusive offer for NZPM Shareholders!
     In recognition of the close strategic partnership between Methven and
     Plumbing World, we would like all trading NZPM shareholders to experience
     Tūroa. We are also delighted to announce that Tūroa will be launched into
     your Plumbing World stores before anywhere else in the NZ market.

     How to order your FREE Tūroa V-Jet handset
     Available from 1st August 2018*
     •    Simply download the Methven plumbing app via the App Store or Google Play.
     •    If you already have the Methven plumbing app then simply update it from 1st August 2018.
     •    Click on “Special Offers & Promotions”, enter your details including your NZPM allotment
          number and we will take care of everything else.
     •    The handset will be sent to your local branch and they will arrange getting this to you, so
          you and your family can experience for yourself this great award winning technology
          designed and manufactured in NZ.

2 | The Connector
NEWS 'N VIEWS FROM THE GROUP | AUGUST 2018 - NZPM Group
WELCOME TO THE PLUMBING WORLD TEAM

                                       Mark Gregan
                                      Digital and Technologies
                                      Manager, based in Auckland

                                            Richard Barnes 
                                                National Sales and
                                               Operations Manager,
                                                based in Auckland

DIRECTOR’S POINT OF VIEW
Good day to you all,
As chairman of the membership committee, I would like to briefly touch on the
subject of the growth of NZPM ordinary shareholders over the last 12 months.
This growth has been achieved by a very hard working team focused on the
service needs of our customers and building our shareholder base. Add to this
the inclusion of a small number of construction and civil works companies, we
have seen membership growth of 4.5% in 2018 which is very pleasing indeed.
In total, ordinary shareholder numbers increased over the last 12 month
period to 840 members which is a net growth of 36 shareholders, and that is
after taking into account all of our retiring members.
Being chair of the membership committee is a very pleasing part of my
role that includes contacting existing and new shareholder members,
and getting their feedback on both the co-operative and how
they are operating in today’s business environment. It is especially
encouraging to talk to the new members and getting a very positive
perspective for the future. New shareholders are the life blood of our
co-op and industry.
When talking to some of our shareholder members, it is very evident
that the labour shortage in our industry is disturbing and is one of
the main concerns right throughout the country. The need to train
apprentices has a very important part to play in our industry and
again trainees are an integral part of the future of the plumbing
industry.
It has also been my pleasure to be a part of the recent NZPM/
Plumbing World road shows around the country. I have attended
the meetings in the lower South Island and it was great to catch
up with old friends and meet our new members.
This year’s AGM is in Tauranga, and I look forward to catching up
with those who will be attending.
Thanks and kind regards,
Stu McIvor

                                                                                NZPM Group | 3
NEWS 'N VIEWS FROM THE GROUP | AUGUST 2018 - NZPM Group
YOUNG PLUMBER OF THE YEAR
     The Plumbing World Young Plumber of the Year regional events
     are currently underway, and we are thrilled with how it is
     progressing. Thank you to everyone who has turned up to support
     a contestant, helped out with judging or followed us on social
     media – we appreciate your involvement.
     Congratulations to our Regional winners to date who will now go
     through to the national final at WINTEC on 10th October.

     Name                          Employer                                               Region
     Hunter Turner                 J&J Plumbing & Gas                                     Auckland Metro
     Hayden Findlay                Eco Plumbing & Gas Ltd                                 Northern
     Alex Hyland                   Steve Wolter Plumbing Ltd                              BOP/Central Plateau
     Liam Pascoe                   Plumbing & Gas Works Ltd Hamilton                      Waikato/Taranaki
     Kane Berry                    TL Plumbing Ltd                                        Wellington/Marlborough
     Jason Gamble                  Tricklebanks 2016 Ltd                                  Lower North Island

     We welcome you to attend our Regional events, whether as an employer of a contestant, supporter or just
     curious. There are still 2 events to take place – details below.

      BRANCH LOCATION              ADDRESS                                        DATE                                TIME

                                    104 Brisbane St, Sydenham,
      Christchurch                                                                Wednesday 15th August               5:30pm – 8:30pm
                                    Christchurch
      Queenstown                    Sherwood Hotel, 554 Frankton
                                                                                  Wednesday 22nd August               5:30pm – 8:30pm
      (off site)                    Road, Queenstown

     Keep up to date with all the action here: https://www.facebook.com/YPCNZ/
     Check out our current finalists below:

        Hayden Findlay - Eco Plumbing & Gas Ltd         Hunter Turner - J&J Plumbing & Gas Ltd       Alex Hyland - Steve Wolter Plumbing Ltd
               Northern Regional Winner                    Auckland Metro Regional Winner              BOP/Central Plateau Regional Winner

      Liam Pascoe - Plumbing & Gas Works Ltd Hamilton             Kane Berry - TL Plumbing Ltd          Jason Gamble - Tricklebanks 2016 Ltd
              Waikato/Taranaki Regional Winner              Wellington/Marlborough Regional Winner       Lower North Island Regional Winner

4 | The Connector
NEWS 'N VIEWS FROM THE GROUP | AUGUST 2018 - NZPM Group
TRADE UP TOUR WITH LOGAN DODDS
AND JESSE JAMES
We all know there’s a massive skills shortage at play in the
NZ Plumbing Trades and if no one does anything about
it we’ll be in some serious trouble in a few years. Our YPC
Brand Ambassadors - Logan & Jesse, are just as concerned
as us about this so we’ve decided to partner up together,
along with Masterlink and do something about it with
school leavers… so we’ve come up with the TRADE UP TOUR.
During August Plumbing World is taking our trades front
and centre to selected schools throughout the country
with our TRADE UP TOUR, an outreach program designed to
shed some light on the plumbing trades and the careers
on offer. Logan and Jesse may not represent your typical
plumbing tradesmen however their passion and energy for
the trade is contagious and gives us the perfect hook to get
school aged boys and girls interested in what our industry
has to offer.
In total they will be visiting 10 High Schools around NZ
and will certainly spread the positive message about
our Plumbing Industry along the way. Plumbing World
also continues with advertising plumbing in the ‘Leaving
School’ publication and other similar publications. We are
also sharing a stand with Master Plumbers, Gasfitters and
Drainlayers Association at the CATE Conference (Careers
and Transition Education) in November, whereby Careers
Advisors from across NZ will be in attendance.

Stay up-to-date with the tour, follow plumbingworld_nz,
logan_dodds and jessejames1212 on Instagram!

TRADE SURVEY - THANK YOU
Many thanks to all those Shareholders who took time to give us valuable feedback for our biennial trade
customer survey. We had over 200 completed surveys and congratulations to Masterton shareholder,
Martijn Poppe for winning the 1,000 MaxPoints for his efforts. We look forward to bringing you the results
and action plans in future issues.

                                                                                                    NZPM Group | 5
NEWS 'N VIEWS FROM THE GROUP | AUGUST 2018 - NZPM Group
WONDERS OF BEIJING
     We are thrilled with the steady flow of registrations for our Wonders of Beijing
     2020 overseas convention, and it’s not too late if you are considering this
     fabulous trip destination.
     We have much pleasure in announcing the winner of the first prize draw
     where the winner will receive an ‘Extension Holiday Package of their choice’
     up to the value of $3,000.

                                               Our congratulations go to:
                                               Murray and Teresa Bond
                                               Graham Bond Ltd
                                               (Papanui Branch)

                                               And there’s more to come. At the end of
                                               September and November 2018 the same prize draws will be on
                                               offer to all those registered by these dates.
                                               To find out more, talk to your local Plumbing World branch manager
                                               now on how you can register to experience a unique and
                                               memorable Plumbing World overseas convention.
                                               We hope all those shareholders in attendance enjoyed all the
                                      WINNER
                                               additional “wow” moments that were created and we thank you for
                                               your support of our Overseas Trips Programme and look forward to
                                               as many as possible joining us for “Wonders of Beijing” in May 2020.
       Teresa accepting the Beijing
       Extension Prize on Murry’s
       behalf

     FUNTIMES IN FIJI - DELEGATES GIVE BACK
     We were delighted to receive a message of thanks from Fiji’s Buruwa Youth
     Primary School who were thrilled with the donations they received on our
     recent visit during Funtimes in Fiji, we thank you for your contributions. Check
     out the below photos – don’t they all look so elated!

     Head teacher, Jeremaia Tuwai had this to say:
     “Buruwa Youth Primary School received gifts of books, sports equipment and
     bags from Plumbing World. The gifts were greatly welcomed as the school is
     remotely located in the interior of Nadi and almost all the students come from
     humble family backgrounds.
     We sincerely thank Plumbing World for the kind hearts and gestures on behalf
     of the school management, teachers and especially the students. May Plumbing World continue to be
     blessed as they have blessed us.”

6 | The Connector
NEWS 'N VIEWS FROM THE GROUP | AUGUST 2018 - NZPM Group
METRIX APP
The team at Metrix are delighted to introduce the new Metrix App!
This app will give NZPM shareholders and their staff speedy access to key product information while they
are on the job.
This information includes:
•   Technical specifications
•   Plumbing World’s suggested retail pricing
•   Contact numbers for Metrix sales people and our main office
•   Plumbing World Branch locations, Metrix warehouse location
•   A ‘Saved’ function that lets you keep your key products in one handy place
•   Brochures you can download as PDF files
•   Installation videos for Valsir inwall cisterns, Marblo baths and Duravit Sensowash toilet seats
You and your staff will need to register for the Metrix app by searching “Metrix New Zealand” on the App
Store for iPhone or get it on Google Play—fill out the online form and you will be away laughing.
The Metrix app is exclusive to NZPM shareholders and their staff, and Plumbing World customers.
With our new app it will be even easier to take advantage of the additional 2% Go For Gold rebate that we
offer to all NZPM shareholders when they buy Metrix brands and products.

METRIX VALUES AT WORK EVERY DAY
“Customers - Customers are at the heart of our
business. Our welcoming team provides each
customer the best personalised experience,
every time.”
The team in our Metrix Parnell showroom work hard
to uphold this value every day. Customers generally
arrive at our showroom feeling overwhelmed and
confused about their projects and how to go about
making good product selection decisions. Lorelei,
Rikki-Leigh, Arezou and Janie do an amazing job
of making our customers feel comfortable in our
showroom environment and build their confidence by
breaking the process down into understandable and
manageable steps.                                                             Metrix team (left to right)
                                                                  Rikki-Leigh Hartshorne, Arezou Bahrani, Janie Qu,
We regularly receive feedback from clients who                                    Lorelei Prendergast
praise the team for unravelling the mysteries of
bathroom renovations or new-builds. This sort of service leads to repeat business and word of mouth
recommendations.
So far in 2018 the Parnell showroom team are producing quotes with a total value 55% higher than last
year, which is an excellent result, and evidence that the team are living our values.

                                                                                                               NZPM Group | 7
NEWS 'N VIEWS FROM THE GROUP | AUGUST 2018 - NZPM Group
SHAREHOLDER LOYALTY
                                                   Congratulations to these—and all other
                                                   shareholders that have recently hit milestones.

 Angus Cathcart
 Angus Cathcart & Sons Ltd        20 YEARS

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            30 YEARS
                                                    Greg Cole
                                                    Wanaka Plumbing Ltd

                                  10 YEARS
 Michael O’Loughlin
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 10 YEARS
                                                    Nick Gill
 MWO Loughlin Ltd                                   Nick Gill Plumbing Ltd

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                                                                                                                                                                                                                                                   2015                                                              2018                                                                                                                                                                  2017                                                                                  1.2                                                                                                                                                                                                                                              201
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     8
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view it on our website: www.nzpm.co.nz/investor-centre
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PURPOSE                                                                                                                                                                                                                                                                     PART OF THE NZPM CO-OPERATIVE
To contribute to our members’ and customers’ business success by
representing their interests and delivering performance excellence.
NEWS 'N VIEWS FROM THE GROUP | AUGUST 2018 - NZPM Group NEWS 'N VIEWS FROM THE GROUP | AUGUST 2018 - NZPM Group
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