Capital Markets Day 2017 - corporate.windeln.de · ERP & Strategy Jan Müller-Gödeke Category...

Capital Markets Day 2017

September 2017

2

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3

84Nikolaus WeinbergerFinance Topics6

71Jürgen Vedie & Michael WendOperations5

55Guillem SanzBebitus4

28Julia-Caroline SchmidtChina3

13Mark HenkelDACH2

3Alexander Brand & Konstantin UrbanOverall Status1

Agenda

4

Our vision and mission for our customers

VisionTo be the leading online retailer

for families with baby and toddler in Europe &

to China

MissionSupporting parents in raising their babies by

providing them with the best products and

advice

5

We have executed our strategy to diversify in Europe

Revenues

2%

60%

38%

Rest of EuropeChinaDach

30%

50%

20%

Q2 2015 Q2 2017

Acquired

in 2015

Acquired

in 2015

Acquired

in 2013

Acquired

in 2015

11

countries

6

Our addressable market is large and growing

Note: CAGR 2017 to 2021 (Europe), 2017 to 2020 (China)

Source: Statista; eMarketer (China cross-border)

✓ Increasing online penetration

✓ Increasing birth rates

✓ Rising purchasing power

✓ Rising expenditure per child

Growth drivers

Market for baby and toddler products

EU

RO

PE

GE

RM

AN

YC

HIN

A

EUR 98bn total cross-border e-commerce market to China

(CAGR +12.6%)

Total market

~EUR 29bn

Online market Penetration

EUR 2.6bn

CAGR: 8.9%‘17: 8.9%

‘21e: 10.1%

~EUR 80bnEUR 12bn

CAGR: 7.4%‘17: 15.2%

‘21e: 18.7%

~EUR 200bnEUR 36.1bn

CAGR: 14.6%‘17: 18.1%

‘21e: 23.0%

7

DACH ItalyEastern

EuropeFrance

Spain /

PortugalChina

Online

Multi-

channel

Offline

We are the leading specialist online retailer in Europe

(Spain)

8

Launch Alipay

payment method

中国

Customer service in

VietnamWeb-Shop in

Chinese

Entrance in

Chinese market

$

Technology to

identify Chinese

Customers

Present in social

media

Direct Express

Delivery

We have a strong competence in the Chinese market

Offerings in the Chinese market

Shop on Tmall

Global

Launch China

UnionPay payment

method

Team China in

Munich (~15 FTEs)

Office in Shanghai Bonded warehouse

Server in China

Achievements

Tmall Global

Award

Certification

agreement

Honored

@Alibaba’s 18th

birthday

9

Numerous improvements for our customers upcoming

Return portal

Bonus program

Drop shipment

….

Personalization

Various improvements

in order process

Relaunch magazine

10

• New COO / BU heads

We have communicated several measures to improve

operational efficiency and profitability (STAR)…

Focus of business model1

• Stop flashsale of Nakiki

Focus of products2

• Reduction of brands/SKUs

• Accelerate private label

Leverage European footprint3

Create operational excellence4

• Automation

• Cautious hiring policy

6

Improve China business5

• Tmall shop

• Other China initiatives

• Regional warehouse

STAR

• Relocate customer service

• Central purchasing

• Relocate central warehouse

• Integrate Feedo & Bebitus

Enhance management team

• New head of product mgmt.

11

…and we have made good progress ín the

implementation

✓ Stopped flashsale of Nakiki

✓ Relocated customer service

✓ Opened Tmall Global Shop

✓ Reduced brands and SKUs

✓ Increased automation: e.g. e-invoicing

✓ Opened office in Shanghai

✓ Hired COO, head of China, head of Germany &

Austria, head of product mgmt.

✓ Combined central sourcing + category mgmt.

✓ Integrated Swiss operations

In progressAlready implemented


• Integration of Bebitus and Feedo

• Regional warehouse in China


• Automation: e.g. employee admin. software

~5% positive

EBIT impact

12

Strong second level management with local market expertise

and know-how

Second level management

Mark Henkel

DACH

Dr. Guillem Sanz

SP/PT/FR

Roman Burdick

Marketing

Silvia Angeloni

Italy

Markus Zabel

ERP & Strategy

Jan Müller-Gödeke

Category Management

Julia-Caroline Schmidt

China

Martin Molcan

Eastern Europe

Stephanie Eva

Finance

Dr. Nikolai Vokuhl

Legal

Paul Hettl

IT

Raimund Rix

Product Management

Michael Wend

Customer Care

Second-level

Management

Reg

ion

sF

un

cti

on

s

13





13Mark HenkelDACH2


Agenda

Capital Markets Day 2017 - DACH

September 2017

15

Introduction

• Engineer by education

• Consultant by profession

• Entrepreneur by heart

• 10y of B2B experience

• 5y of B2C experience

• Led teams in strategy, procurement,

operations, HR, IT, BizDev

• Managed teams from 3-120 employees

• Raised 20m € in funding

• Managed up to 55m € in revenue

• Good network in German tech- and start-

up scene

• Head of DACH at windeln.de since July

2017

Mark Henkel

16

That‘s the reason why I‘m here

17

Thats the way I want to focus on at windeln.de

18

Analysis of current situation on DACH opens room for

improvement and growth opportunity

INSIDE

• Revenues still driven by high portion of

demand-based products

• Revenue base recently lowered as we

focus on sustainable marketing

• Rate of 2nd purchases with upside

potential, esp. by raising brand awareness

• Traffic for demand-based products is

expensive as this area is highly

competitive (offline/online)

• Customer is strongly influenced by social

media and is well educated

OUTSIDE

19

Our recently commissioned market research unveiled

upside potential in targeted communication approach

Brand

• … Perception (known for consumable

goods mostly)

• … Awareness (potential for vital community,

to drive non-paid traffic)

Customer

• 4 focus personas developed

• Customer buy in different „buying

constitutions“, such as: (a) need based, (b)

impulse based, (c) consulting based

Product categories

• Each product category has a unique

customer journey

“Product advice“ – our counseling part is well

accepted but could be connected more to the

shop.

To distinguish more from competitors our shop

and offering will become more inspirational.

We asked:

• 50% pregnant women

• 50% moms with kids younger

than 2 years

• Half of them already existing

customer

• Study took place in Munich,

Cologne & Berlin

Key results

20

Order Intake, No. of Visits, Conversion Rate

Sales and Purchase Price, Category Mix

Logistic-, Paymentcosts

Marketing Mix, Marketing Costs

Focussing on operative core KPIs ensures healthy

growth

13,1

11,0

Q2/16 Q2/17

2,1

1,0

Q2/16 Q2/17

-52.4%-16.1%

Marketing costs and revenues (in €m)

AOV

x

Margin

=

CM 1

-

Ops

=

CM 2

-

Marketing

=

CM 3

Focus to ensure sustainability

21

Market data supports our aspirations to intensify our

customer-centric approach in the DACH Region

Note: CAGR 2017 to 2022 (A & CH)

Note: CAGR 2017 to 2021 (D)

Market for baby and toddler products

~EUR 29bn

DACH

Online

Multi-

channel

Offline

EUR 12.6bn

CAGR: 8.9%

‘17: 8.9%

‘22e: 10.1%

Competitive landscape

GERMANY

Total Market

~EUR 1bn

Online Market

Penetration

EUR 0.3bn

CAGR: 6.1%

‘17: 20.8%

‘22e: 21.0%

SWITZERLAND

~EUR 2bn

EUR 0.3bn

CAGR: 7.2%

‘17: 15.0%

‘22e: 17.9%

AUSTRIA

22

We have a solid need-oriented customer base, though

there is potential outside of need

Situation Complication

• windeln.de is recognized as the shop

which covers need-based buying

• Customers perception: windeln.de

offers just a limited part of it‘s overall

variety

• We generate the bigger part of our

traffic through search engines, though

¼ of the traffic comes directly

• windeln.de offers a well known and

popular magazine

• Customers generated by search

engines don‘t get informed about

the brand world of windeln.de

• Price-concious need-buyers buy

once, act unloyal and can‘t be

related to a community

• The magazine is not yet profitable

and linked to the shop

23

Address the customer by his needs and rise emotions to

purchase our products

• We enhance our product offering and

merchandising for products beside the

need, by working on more emotional

campaigns

• We address (a) different target groups

and (b) their unique purchase

conditions with adequate measures

• We take advantage of our huge set of

content (self-created and user-created)

which is already adapted by the

customer

Solution

24

Accurate sales approach address different purchase

conditions

Covering demand Inspiring

• Need-oriented products with

consulting influence

• Explaining, covering needs

• Text, information

• Diapers, food, gear, drugstore

items

• Impulse buying products with

consulting elements

• Inspirational, curated

• Pictures, stories

• Fashion, furniture, toys, gear

25

Deep dive: our more active sales approach includes

innovative and creative parts

Branding Campaigns

Innovative

2-4 campaigns per year

Month

Recurring- Campaigns

Creative

Fix planned

Weeks

Reactive – Promotion

Diligent

Ads supported

Days

# being the best daddy

# parenthood is a serious thing

# black friday

# holidays are coming

# brand „name x“ get 20% off

# in category get one free

Needs

Security

Status

Membership

26

Success in DACH region is based on three pillars

Margin ▲

• Pricing

automation

• Marketing

support

• Customer-

discrimination –

category mix

Revenues▲

• Increase

conversion rate

• Increase visits

• Focus on

customer

retention

Costs▼

• Building a vital

community

around our

offering

• Leverage social

media)

• Optimize

content

Clear

Measures

27

Working on unit economics on daily basis and mastering

our customers enables us to grow medium-term

Business

We can steer our business pro-

actively with a strong focus on

profitbale growth

We understand our customer

base and have the right product

mix and marketing measures to

master our competition

Environment

28





13Mark HenkelDACH2


Agenda

Capital Markets Day 2017 - China

September 2017

30

Introduction

• MSc in International Management

• 10 years of professional experience;

focus on FMCG

• 4+ years Group Manager L‘Oréal

Switzerland

• 4+ years Brand and Business Unit

Manager August Storck KG, Singapore &

China

• Head of China Business at windeln.de

since July 2016

Julia-Caroline Schmidt

31

1. China‘s baby market: 2017 update

32

17.86 million newborns in 2016 – the highest in 16 years

(Germany: 0,75 Mio.)

+8% in 2016

Source: Caixinglobal.com, January 23, 2017

High number of births underpin strong demand in China

45% of newborns being second

child in their families

33

Continuous strong development for China’s Cross-

border e-commerce

Source: eMarketer

30,1

57,1

85,8

110,7

129,1

144,2

157,7

0

20

40

60

80

100

120

140

160

180

2014 2015 2016 2017e 2018e 2019e 2020e

• CAGR of 32% from 2014 to

2020

• The main sales driving

categories are:

• baby products

• health supplements

• beauty & personal care

2014 - 2020 China CBEC retail sales

Annual market revenue (Unit: USD bn)

34

Tmall Global, JD Global and Kaola are Top 3 B2C

platforms in CBEC market

Source: Analysus

Tmall Global; 18,9%

Taobao Global; 15,4%

JD Global; 11,8%

Kaola; 11,6%

VIP Global; 7,3%

Amazon AGS; 6,6%

Xiao Hong Shu; 5,0%

Jumei Global; 4,5%

Yang Ma Tou; 3,2%

Suning Global; 1,9%

Others; 13,8%

Tmall Global

Taobao Global

JD Global

Kaola

VIP Global

Amazon AGS

Xiao Hong Shu

Jumei Global

Yang Ma Tou

Suning Global

Others

2016 Q4 Cross-border e-commerce market share

- C2C

35

Baby Nutrition Market (IMF + baby food) clearly dominated

by Danone brands Aptamil and Nutrilon

# Brand MAT May 2017

1 Aptamil 645

2 Nutrilon 281

3 a2 platinum 155

4 HiPP 133

5 Friesland 111

6 Wyeth(excl.BabyNes) 103

7 Mead Johnson 102

8 Abbott 93

9 Bellamy‘s 80

10 Gerber 73

IMF & baby food (in USD bn) Top 10 brands (in USD mn)

1,9

0,4

0,4

C2C B2C FTZ

WeChat

MAT May 2016

1,40,5

0,5

C2C B2C FTZ

WeChat

MAT May 2017

+42%

IMF =Infant Milk Formula

MAT = Moving Annual Total

Source: Smartpath

36

2. windeln.de‘s core business

37

21,6

23,1

19,8

27,7

0

5

10

15

20

25

30

Q1 2016 Q1 2017 Q2 2016 Q2 2017

7%6%

0% 0%

windeln.de‘s business driven by webshop, while Tmall

expanding rapidly

Revenues (in EUR Mio)

38

• Clear focus on our top category: baby milk powder

• Fully responsive design to meet demands of mobile affine Chinese customers

• Faster website access

Official partnership German Aptamil

Our website caters to the demands of Chinese families

39

Key success factors: German quality, fast delivery &

localized payment

40

3. windeln.de’s expansion: Tmall Global

41

Two channels targeting different consumer expectations

• Large customer base – promotion driven

• All for the Chinese family: highest quality

from Germany

• Focus on German origin

• Direct delivery from Germany & local

warehouse

• Loyal customer base

• ‚Less trust in platforms‘

• Detailed information offered

• Special promotions, product tests

Tmall Global Store

windeln.de webshop

42

Reaching 430+ million monthly shoppers on Alibaba

platforms

✓ Address additional customer group

with trust in local platforms

✓ First sale on windeln.de Tmall shop:

Sat., 16.07. 2016

✓ Number of SKUs for launch:

85 now at 400+

✓ Top sellers products: Aptamil, Hipp,

Salus, Concord, Medela, Lego etc.

✓ March 2017 earned award for

„Best International Brand“

✓ Official Tmall Global representative

during Alibaba 18th anniversary

Tmall Global Shop opening

43

3 months revenue sold in 24 hrs!

44

The local warehouse has improved delivery times

between 3 to 7x (currently in test phase)

Test phase: Local warehouse delivery from China

8-14

days

5-9

days

max 2

days

45

Warehouse for windeln.de products in Guangzhou

managed by a partner to highest standards

▪ Warehouse area: 20,000

square meters

▪ High security standards with

video camera etc.

▪ Modern packaging standards

(airbags for milk powder and

extra strong carton etc.)

▪ Product control (live time BBD

check, bad BBD alert)

▪ Traceability system (track the

products to the origin)

46

4. How to win our customers

47

7 year anniversary: 5 lucky winners spent a week in

Germany exploring the windeln.de world…

✓ Extensive marketing campaign in July

2017 to engage participation

✓ Sharing your shopping experiences

with windeln.de

✓ Cooperating with leading suppliers like

Milupa, Salus and Medela

✓ Trip schedule: mix of educational

parenting insights and sightseeing

✓ Visiting Munich and Berlin

✓ Preparing their own parcels in

windeln.de warehouse

Trip of a lifetime to Germany

48

…deep insights into the expectations and experiences of

young Chinese parents…

49

…Aptamil being the no.1 brand for IMF CBEC market

received special attention and focus…

50

…ending with a visit to windeln.de warehouse and

preparing their own parcel with favourite items!

51

5. Market research

52

Deeper understanding of the needs of the rising Chinese

middle class

• >32m inhabitants,

• surface size of Austria

• „The biggest city in the world“

Tier 2 cities on the rise

• >8m inhabitants,

• 1hr northwest of Shanghai

• High birth rates and example

upcoming tier 2 citiesSource: SCMP.com, November 2016, the Economist Intelligence Unit

China’s middle class to account for >30% of its

population by 2030 (from 10% in 2015)

Chongqing

Nanjing

53

Market research: Exploring trends and expectations for

future consumer groups

Explore Chinese Mum’s attitudes

✓ Paired interviews with young mothers in

Chongqing and Nanjing addressing

perceptions of IMF category, brand

loyalty, decision making processes

✓ Understand usage of different shopping

channels

✓ Draw conclusions and recommendations

for windeln.de’s future strategy in China

54

Baby Food

Appliances

❖ Continue growth in China business

❖ Drive up-selling

❖ Extend customer lifetime

China strategy:

„Everything for the Chinese family“

Toys

Health

supplements

55





13Mark HenkelDACH2


Agenda

Capital Markets Day 2017 – Bebitus

September 2017

57

Introduction

• Degree in Mathematics , a degree in

Statistics and Operations Research and

a PhD in Industrial Engineering

• Supply Chain Director for Privalia

• Supply Chain Director for the Caprabo

supermarket

• Management positions and consultant for

several companies

• Founded Bebitus in 2011: Currently Head

of Spain, Portugal and France at

windeln.de SE

Dr. Guillem Sanz

58

The biggest online shop specialized inbaby care products in Spain and Portugal

and with presence in France

Our story

2011 2014January

2015April

2015October

2015

Birth ofBebitus

The first e-commerce inSpain where you can findall you need for your babyin one shop

Bebitus, leader inthe Spanish market

Birth of BebitusFrance

Birth ofBebitus Portugal

Bebitus joinedwindeln.de Group

Who are we?

59

CAR SEATS STROLLERSDIAPERS

FOOD TOYSAT HOME

Localized product portfolio

60

1. Zara.com

2. I-Neumáticos.es

3. Tiendanimal.es

4. Nespresso.com

5. Showroomprive.es

6. Amazon.es

7. Bebitus.com

8. HP.com

9. Andorrafreemarket.com

10. Zooplus.es

11. Decathlon.es

12. Apple.com

13. Kiabi.es

14. Madridhifi.com

15. Zalando.es

TOP 15 High score in all the

analysed categories

The only baby care

e-commerce in the TOP 12

Survey done by OCU (Consumers and Users

Organisation) where 84 Spanish e-commerce

were analysed with the assessment coming

from 14.507 online purchases.

The 7th best e-commerce in Spain according to customers

61

Source: Datos Macro, INE

Important markets

among Europe

Lifetime value

recurrence

Similar assortment, communication

and demanded services

13,5%

BIRTH / YEAR

SHARE OF E-COMMERCE

BABY / WOMAN

1,93 1,29 1,36

9,2% 3,1%

786k 407k 87k

1,51

4,1%

770k

Our market has great potential

62

Source: Statista.com, Netcomm, comScore

E-commerce

volume 2017

CAGR 2017 - 2022

Internet

penetration 2017

Expected internet

penetration 2022

€ 53,356M

7.4%

61.4%

65.6%

Estimated GDP per

capita 2017€ 41.807

€ 31,334M

9.6%

65.4%

73.7%

€ 36.636

€ 14,339M

9.6%

50.6%

65.9%

€ 32.093

€ 2,488M

11.0%

53.6%

75.8%

€ 25.336

Amazon market

share 2016~20% ~10% ~7% Not present

E-commerce markets differ slightly in terms of maturity and intensity of competition

Market environment

63

Online

Multi-channel

Offline

Big markets dominated by offline = great opportunity for pure players

A competitive environment

64

2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 ( E . )

SPAIN FRANCE PORTUGAL

+233%

Highlights

• Steady and strong

growth

• Bebitus has plenty

of room to grow

• We will take

advantage of the

great increase of

internet

penetration in the

coming years

+200%

+135%

+81%

Bebitus revenues

H1 2017

growth

yoy: 35%

65


Integrating Bebitus is a key project within STAR

measures to reach profitability for the Group



Focus of products2





• Automation


6


• Tmall shop



STAR







Bebitus integration as a blueprint for Feedo

66

Operating legal entity

Windeln.de SE

Service Company

Bebitus Retail S.L.

Customers Inventory

EmployeesEmployees Suppliers

MUC


Windeln.de SE


Bebitus Retail S.L.

100% owned

SuppliersEmployees Suppliers Employees

Customers InventoryCustomers Inventory

DE CH

CN IT

GB Uster

BW Arese

ES FR

PT

BCN

MUC BCN

100% owned

BCN

DE CH

CN IT

ES PT

FR

GB

Uster

BW

Arese

BCN

Suppliers

Bebitus exclusivelyrenders services for

windeln.de SE

…and after the full integration Bebitus before…

… … …

Target set-up for Bebitus after the integration: What exactly

does it mean to be fully integrated to the SE?

67

The new organizational setup at Bebitus efficiently uses

Munich headquarter functions

Marketing &

CRM

Category

Mgmt./ Strat.

Purchasing

OperationsProduct

Data Mgmt.

Customer

Service

Debitor

Mgmt.

FTE: 9,5 FTE: as today FTE: 3 FTE: 1,5 FTE: 16+1 FTE: 1

Operational

Purchasing

FTE: 3

Finance &

Control.

FTE: 1

Channel

Mgmt.

FTE: as today

Central Group Functions:

IT, ERP, Product Mgmt., BI,

Accounts Payable, Legal, HR,

PR - no more FTEs locally

Bebitus Mgmt

(2 FTEs)

Total of 55

FTEs

68

Detail of the home page Category pre-page Menu

Promotions page

A sneak peek of our new website from October 1st

More colorful to match countries´ culture

69

We expect top- and bottom-line effects due to synergies

and centralization after integration

✓ Entrepreneurial people

✓ Exceptional team spirit & motivation

✓ “Regardless of technology, we make it

happen” attitude

✓ Deep understanding of the local markets

Cost-reducing effects through …

• Major reductions in Bebitus labor costs

bottom-up estimation: reduction of

~300.000EUR/p.a.; effect visible in 2018

• Further cost reductions through group activities

e.g. one technical platform, central purchasing

Revenue-increasing effects through …

• Broader access to supplier/product portfolio

• Push of private label brands

• Improved customer experience (e.g. faster shop,

responsive design)

• Higher usage of analytics (BI, CRM)

• Greater transparency in Finance & Controlling (due to

ERP)

Strengths Team Bebitus

70

OUR OFFICES IN BARCELONA – PLAÇA CATALUNYA

OUR TEAM

59 people

at the office

60 people

at the

warehouse

(outsourced)

Very well-qualified young team

Motivated team

Sense of belonging

International vision

Thinking global, acting local

Excited to be part of windeln.de group

Who are we?

71





13Mark HenkelDACH2


Agenda

Capital Markets Day 2017 - Operations

September 2017

73

Current warehouse setup

Barcelona

Arese

Berlin

Prague Guangzhou

Test phase bonded

warehouse for Tmall

orders

To be moved to

Poland in H1 2018

To be moved to

Poland in H2 2018

• Move of central warehouse to Wroclaw,

Poland in H1 2018

• Close to German border, good basis for

Eastern Europe Expansion

• Experienced logistics provider in e-

commerce

• Savings of 1-2% in fulfilment costs p.a.

• Benefitting from

• Lower operation costs

• 7 days working week

(no „weekend hikes“)

• State of the art operation processes

• Status: Active project phase

Central warehouse move

Wroclaw

74

Further operation topics done already

DONE

• Outsourcing customer service (DACH)

• Strengthening of team

• New Head of Transportation (coming from Zooplus)

• New Head of Supply Chain Development (coming from Zooplus)

• New Head of Customer Care (Michael Wend)

• Streamlined functions for the whole group: consolidation of purchasing and category management

• Optimization transportation costs (Post NL for deliveries to China, …)

TO COME

• Build up an efficient and high performing logistics network in Europe with different locations

• Return portal

• Drop shipment

• Various improvements in order process

Case Study: Customer Care Outsourcing

76

May I introduce myself…

• Master Degree in Business Consulting

• 17 years of professional experience within Customer

Care in different roles

• Customer Experience; Service Design Thinking &

Innovation Expert

• 3 years CRM Consultant, CSC Ploenzke AG, Wiesbaden

• 3 years Project Management Customer Care B2B, Arcor

AG, Eschborn

• 3 years Customer Service Manager E Wie Einfach,

Cologne

• 8 years NPS Program Management, Customer Insights &

Innovation E.ON Private Customers, Munich

• Head of Customer Care since May 2017

Michael Wend

77

When speaking about customer care

1) Customer care – everything for the unique windeln.de SE customer experience

2) Customer service – providing excellent customer service

3) Debitor management – securing customer orders and payments

Operational excellence as fundament for improving customer experience constantly

We have the ambition to become the groups promotor of customer experience

Fix thebasics

Delight the customer

high performance

zone

Death zoneno

customers

Fulfill the expectationscommodity

Zone

Technical/product/process

expectations

Emotional

expectations

+

+

-

-

78

Global customer service organization

Barcelona

Milano

Prague

Pecs

Saigon

External partners

windeln.de

79


Outsourcing customer service – a major STAR measure



Focus of products2





• Automation


6


• Tmall shop



STAR







80

Project overview outsourcing

- done in less than 6 months for first live customer contact

Q3 16 Q4 16 Q1 17 Q2 17 Q3 17

• Preparing tender

• Longlist near shore

service Providers

• Call for offer

• Evaluation

• On-site visits

• Contract sign

buw/Convergys

• Start transition

project

• Dec 1stCall HU

• Partial closure CS

Munich

• 30.4. full closure

Munich

• June 1st customer

service Germany

only in HU, Pecs

incl. most back

office tasks

• July 1st CH

customer service

exclusively in HU

81

Targets, learnings and major partner

Targets

• Competitive variable cost structure

• Scalability

• In-house focus on strategic development and customer

experience topics rather than operational customer

service issues

• Lean organization

• KPI steering blueprint for all other customer service sites

Global External Partner with long-term experienced site

• Buw/convergys one of the major players

• Merger is a good combination of German middelstand

and global management

• Pecs is a very experienced site (more than 10 years

successfully in operation)

• Very experienced mgmt. team (more than 10 years)

• windeln.de SE one of major 4 projects on site

82

Transition in pictures

83

Potential future steps in customer service

• iChat for Chinese customer service- preparing for ChatBots

• WeChat as sales and service channel

• Evaluating spare part/repairing services for Chinese market

• WhatsApp technical ready for DACH - no valid business case yet

• Improving advice and selling in customer service sites

• Defining target operating model customer service sites Milano, Barcelona & Prague

84





13Mark HenkelDACH2


Agenda

Capital Markets Day 2017 – Finance Topics

September 2017

86

Break-even target in 2019 is unchanged…

Adj. EBIT margin in %

+7 to 8%

in total

2+% p.a.1)

-14%

Current

Adj. EBIT

margin

Adj. EBIT

break-even in

course of

2019

We expect to grow on average at least 15% annually

2016 2017 - 2019 2019

STAR & other

measuresGrowth /

Scale effects

1) Illustrative impact for 15+% annual revenue growth at flat operating expenses.

2) Cash, time deposits and restricted cash as of June 30, 2017

• Market growth

• Online penetration

• Intl. expansion

• Customer satisfaction

• Central warehouse

• Integration

• Warehouse CN

• ...

H1 2017:

(12.2)%

H1 2017:

+15.8% yoy

30-Jun Liquidity:

EUR 42m (2);

Cash burn in Q2

EUR (6.3)m

Adressed during

presentations today

87

…but our path to break-even is not a linear function

• We changed our marketing

approach and deliberately

reduced marketing spent in

Germany to focus on profitable

customer relationships – which

consequently lowered revenue

base

• Integration always includes

short-term risk to revenues

• Our business is characterized by

a certain degree of seasonality

peaking in Q4 mainly due to

Christmas

• We used to increase „safety“

stock before an integration

• We will have cash out due to the

warehouse move

• The bonded warehouse is great

but it increases DIO due delivery

via ship

• The move of the central

warehouse occurs in H1 2018

• The integration of Feedo will

occur in 2018

• We incur one-time costs

associated with the preparation

of warehouse move and

integration of Bebitus and Feedo

Revenue growth LiquidityEBIT margin

88

Considerations on segment disclosure

As of June 30, 2017

Segment German Shop International

Shops

Shops windeln.de Bebitus

nakiki.de Feedo

windeln.com.cn windeln.ch

windelnde.tmall.hk pannolini.it

Rev. Share

H1 2017

66 % 34 %

Disclosure Revenues and EBIT

contribution

Revenues and EBIT

contribution

+ Regional revenue disclosure:

DACH, China, Rest of Europe

We are currently considering a change to

our segement reporting

• With closure of the shopping club

business model in Q2 2016 we reduced

the number of segments from 3 to 2

• Today we only run a „ready-to-ship“

business model

• We continue to integrate our

acquisitions

• We continue to centralize functions to

group functions

• EBIT on segment level less meaningful

Capital Markets Day 2017 - corporate.windeln.de · ERP & Strategy Jan Müller-Gödeke Category...

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