RFIDPropagation

February 23, 2016

1. Presentation of DECATHLON2. Purpose of the project3. Teams interaction4. New processes in stores4. Change management5. Key Figures

AGENDA

1. Presentation of DECATHLON2. Purpose of the project3. Teams interaction4. New processes in stores5. Change management6. Key Figures

OUR AREAS OF EXPERTISE

Local and on-lineretailer

Creator ofexclusive branded

sporting goods andservices.

OUR AREA OF EXPERTISE

RESEARCH &

DEVELOPMENT

5 research themes

530 engineers

50 researchers

23 new patents in2013

SUPPLY CHAIN

5 000 employees

650 million items shippedto stores each year

50 000 containersexported

46 warehouses

65 sports in stores

35 000 products referencedon average

1 000 12 000 m2Selling floor sizes

35 sports, simplifiedoffer

1.200 mAverage selling floor size

%69,5

30,5

TURNOVER

Turnovers without taxes/billions

Turnover repartition

889 STORES* WORLDWIDE / 22 RETAIL COUNTRIES (2014)

EUROPE

RUSSIA

24

BRASIL

18

INDIA

20

GREATER CHINA

120Morocco

2

*Decathlon & Decathlon Easy

OUR STORES

285

112

99

43

24

23

22

16

16

13

9

7

5

3

1

1

France

Spain

Ita ly

Poland

Portuga l

Germany

Belgium

Hungary

UK

Romania

Turkey

Czech Rep

Netherlands

Bulgaria

Sweden

Croatia

1. Presentation of DECATHLON2. Purpose of the project3. Teams interaction4. New processes in stores5. Change management6. Key Figures

2. PURPOSE OF THE PROJECT

Improve the efficiency of store teams and the customer experience.

1. Presentation of DECATHLON2. Purpose of the project3. Teams interaction4. New processes5. Change management6. Key Figures

Prparation phasis2008/2009:Labs Tests (2008) Pilote test (2009/2010) Mesure of KPI

Pre deploymentphasis:4 pilot in 4 countries2010/201212 stores in 10 new countries(all custom areas)=> Mesure of KPI

Deployment/Go Production (07/2013) Logistique (02/2014) Retail (04/06 2014) 3 processes in retail/4processes in logistic

Actors :Teams of IT/OperationsCashing/Stores/WarehousesExternal companies :Embisphere/Checkpoint/Nedap

RFIDPropagation

Give theautonomy to

+800 stores in17 countries in

less of 3months: fromApril to june

2014

Production

RetailSupply &Logistics

IT

Equipmentsuppliers

3. TEAMS INTERACTION

PRODUCTIONSOURCE TAGGING

Dispatch Tracking

Source-tagging of home-brand products RFID stickers in distribution centers & stores (External Brands) RFID server in store, connected to POS & antitheft gates

LOGISTICS Inventory Dispatch Tracking

STORE-RETAIL Inventory POS Loss Prevention

UniqueID

3. THE PROJECT

3. TIMING

Preparation of the equipments : 1 year to upgrade the Wifi network 1 year to upgrade or change our antitheft antennas 8 months to install the RFID readers in DC Six months to install stock take & POS readers, RFID servers 12 months (and still in progress) for RF & electronic homologation Workshop in each country with the board of eacof them

Preparation of the teams Three months to train our teams worldwide

Preparation of the products : Start of the source tagging 8 months before the roll out (training of

suppliers 2 monthsbefore)

Summerize of equipments in the supply chain

FACTORIESPutting tags inproductsShipping control

WAREHOUSESDelivery controlInventoryEpc shipping=>stores

STORESInventoryCashingSecurity ofproducts

1. Presentation of DECATHLON2. Purpose of the project3. Teams interaction4. New processes in stores5. Change management6. Key Figures

New equipments

New applications

4. NEW PROCESSES : IN STORES

Inventory

New equipments

New applications

4. NEW PROCESSES : IN STORES

Cashing

New equipments

New applications

4. NEW PROCESSES : IN STORES

Security

Kill on Pos

4. NEW PROCESSES IN WAREHOUSES

1. Presentation of DECATHLON2. Purpose of the project3. Teams interaction4. New processes5. Change management6. Key Figures

5. CHANGE MANAGEMENT

Communication

Trainings

Quick referencescards

1. Presentation of DECATHLON2. Purpose of the project3. Teams interaction4. New processes5. Change management6. Key Figures

6. Best practices and risks

BPractices Project organisation with a cross-BU Program (xx

projects) Director Long term vision (whats & whys) & sponsorship Definy a short time ROI and an additional ROI Mesure of the KPI in real conditions (participationof pilots in coasts) Technical validation step by step by the direct users Follow the standards (PIA/EPC/EPC gen2) Train and manage relays per country

/stores/Warehouses Assess ethical & health potential impacts

Risks Copy-paste to your organisation the ROI of an other

company : processes should be customize Underestimate IT impacts See the roll out as the end ; it is also a starting

pointit is a marathon, not a sprint => organize aRFID-handover towards operational teams

6. ACHIEVEMENT

17 countries (in 4 different custom zones)implementing 3 processes in + 800 Stores& +30 DC through + 25,000 pcs of RFIDequipment in 2014

25 countries and all stores implemented inRFID at the end of 2015

85% of tagged products (>1 billion inmarch 2015)

Inventory Productivity in store x5 (for RFID products),

thus better stock availability and increased sales End of External one-shot fiscal inventory

(with service providers) Increase of physical availability in store (> 5%)

POS Increased productivity Less Sales Price Discrepancies

Loss Prevention Increased interpellations Less wrongdoings at POS Decrase of the shrinkage

Slide Number 1AGENDASlide Number 3OUR AREAS OF EXPERTISESlide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 102. PURPOSE OF THE PROJECTSlide Number 12Slide Number 133. TEAMS INTERACTIONSlide Number 153. TIMINGSummerize of equipments in the supply chainSlide Number 184. NEW PROCESSES : IN STORES4. NEW PROCESSES : IN STORES4. NEW PROCESSES : IN STORES4. NEW PROCESSES IN WAREHOUSESSlide Number 235. CHANGE MANAGEMENTSlide Number 25Slide Number 266. ACHIEVEMENTSlide Number 28