Capital Markets Day 2017 - September 2017 - windeln.de
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Capital Markets Day 2017 September 2017
Disclaimer
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2
Agenda
1 Overall Status Alexander Brand & Konstantin Urban 3
2 DACH Mark Henkel 13
3 China Julia-Caroline Schmidt 28
4 Bebitus Guillem Sanz 55
5 Operations Jürgen Vedie & Michael Wend 71
6 Finance Topics Nikolaus Weinberger 84
3
Our vision and mission for our customers
To be the leading online retailer
Vision for families with baby and toddler in Europe &
to China
Supporting parents in raising their babies by
Mission providing them with the best products and
advice
4
We have executed our strategy to diversify in Europe
Acquired
in 2015
Acquired
in 2013
Acquired
in 2015 Acquired
in 2015
Revenues
Q2 2015 Q2 2017
2%
20
38 30
%
% %
60
% 50
11 %
countries
Rest of Europe
China
Dach
5
Our addressable market is large and growing
Market for baby and toddler products
Total market Online market Penetration
GERMANY
EUR 2.6bn ‘17: 8.9%
~EUR 29bn CAGR: 8.9% ‘21e: 10.1%
Growth drivers
✓ Increasing online penetration
EUROPE
✓ Increasing birth rates EUR 12bn ‘17: 15.2%
~EUR 80bn CAGR: 7.4% ‘21e: 18.7%
✓ Rising purchasing power
✓ Rising expenditure per child
EUR 36.1bn ‘17: 18.1%
~EUR 200bn CAGR: 14.6% ‘21e: 23.0%
CHINA
EUR 98bn total cross-border e-commerce market to China
(CAGR +12.6%)
Note: CAGR 2017 to 2021 (Europe), 2017 to 2020 (China)
Source: Statista; eMarketer (China cross-border) 6
We are the leading specialist online retailer in Europe
Eastern Spain /
DACH Italy France China
Europe Portugal
(Spain)
Online
Multi-
channel
Offline
7
We have a strong competence in the Chinese market
Offerings in the Chinese market Achievements
中国
Web-Shop in Customer service in
Tmall Global
Chinese Vietnam
Award
Present in social
media Launch China
Direct Express UnionPay payment
Launch Alipay Delivery method
$ payment method Certification
Technology to agreement
identify Chinese
Customers Shop on Tmall
Team China in Global Server in China
Munich (~15 FTEs)
Entrance in Honored
Chinese market @Alibaba’s 18th
birthday
Office in Shanghai Bonded warehouse
8
Numerous improvements for our customers upcoming
….
Various improvements
in order process
Personalization
Bonus program
Drop shipment
Return portal
Relaunch magazine
9
We have communicated several measures to improve
operational efficiency and profitability (STAR)…
1 Focus of business model
• Stop flashsale of Nakiki
6 Enhance management team 2 Focus of products
• New COO / BU heads • Reduction of brands/SKUs
• New head of product mgmt. • Accelerate private label
STAR
5 Improve China business 3 Leverage European footprint
• Tmall shop • Relocate customer service
• Other China initiatives • Central purchasing
• Regional warehouse • Relocate central warehouse
4 Create operational excellence
• Integrate Feedo & Bebitus
• Automation
• Cautious hiring policy
10…and we have made good progress ín the
implementation
Already implemented In progress
✓ Stopped flashsale of Nakiki • Relocate central warehouse
~5% positive
✓ Relocated customer service • Integration of Bebitus and Feedo
EBIT impact
✓ Opened Tmall Global Shop • Regional warehouse in China
✓ Reduced brands and SKUs • Accelerate private label
✓ Increased automation: e.g. e-invoicing • Automation: e.g. employee admin. software
✓ 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
11Strong second level management with local market expertise
and know-how
Second level management
Regions
Mark Henkel Julia-Caroline Schmidt Dr. Guillem Sanz Martin Molcan Silvia Angeloni
DACH China SP/PT/FR Eastern Europe Italy
Markus Zabel Jan Müller-Gödeke Roman Burdick
Functions
Michael Wend
ERP & Strategy Category Management Marketing Customer Care
Second-level
Management
Stephanie Eva Dr. Nikolai Vokuhl Raimund Rix Paul Hettl
Finance Legal Product Management IT
12Agenda
1 Overall Status Alexander Brand & Konstantin Urban 3
2 DACH Mark Henkel 13
3 China Julia-Caroline Schmidt 28
4 Bebitus Guillem Sanz 55
5 Operations Jürgen Vedie & Michael Wend 71
6 Finance Topics Nikolaus Weinberger 84
13Capital Markets Day 2017 - DACH September 2017
Introduction
Mark Henkel
• 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
15That‘s the reason why I‘m here
16Thats the way I want to focus on at windeln.de
17Analysis of current situation on DACH opens room for
improvement and growth opportunity
• Revenues still driven by high portion of
demand-based products
• Revenue base recently lowered as we
INSIDE
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
OUTSIDE competitive (offline/online)
• Customer is strongly influenced by social
media and is well educated
18Our recently commissioned market research unveiled
upside potential in targeted communication approach
Key results
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
We asked: Product categories
• Each product category has a unique
• 50% pregnant women customer journey
• 50% moms with kids younger
than 2 years “Product advice“ – our counseling part is well
• Half of them already existing accepted but could be connected more to the
customer shop.
• Study took place in Munich, To distinguish more from competitors our shop
Cologne & Berlin and offering will become more inspirational.
19Focussing on operative core KPIs ensures healthy
growth
Focus to ensure sustainability Marketing costs and revenues (in €m)
AOV Order Intake, No. of Visits, Conversion Rate -16.1%
-52.4%
x
2,1
Margin Sales and Purchase Price, Category Mix 13,1
=
CM 1 11,0
-
Ops Logistic-, Paymentcosts
=
1,0
CM 2
-
Marketing Marketing Mix, Marketing Costs
=
CM 3
Q2/16 Q2/17 Q2/16 Q2/17
20Market data supports our aspirations to intensify our
customer-centric approach in the DACH Region
Market for baby and toddler products Competitive landscape
GERMANY SWITZERLAND AUSTRIA DACH
Total Market
~EUR 29bn ~EUR 1bn ~EUR 2bn
Online
Online Market
EUR 12.6bn EUR 0.3bn EUR 0.3bn
CAGR: 8.9% CAGR: 6.1% CAGR: 7.2% Multi-
channel
Penetration
‘17: 8.9% ‘17: 20.8% ‘17: 15.0% Offline
‘22e: 10.1% ‘22e: 21.0% ‘22e: 17.9%
Note: CAGR 2017 to 2022 (A & CH)
Note: CAGR 2017 to 2021 (D) 21We have a solid need-oriented customer base, though
there is potential outside of need
Situation Complication
• windeln.de is recognized as the shop • Customers generated by search
which covers need-based buying engines don‘t get informed about
the brand world of windeln.de
• Customers perception: windeln.de
offers just a limited part of it‘s overall • Price-concious need-buyers buy
variety once, act unloyal and can‘t be
related to a community
• We generate the bigger part of our
traffic through search engines, though • The magazine is not yet profitable
¼ of the traffic comes directly and linked to the shop
• windeln.de offers a well known and
popular magazine
22Address the customer by his needs and rise emotions to
purchase our products
Solution
• 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
23Accurate sales approach address different purchase
conditions
Covering demand Inspiring
• Need-oriented products with • Impulse buying products with
consulting influence consulting elements
• Explaining, covering needs • Inspirational, curated
• Text, information • Pictures, stories
• Diapers, food, gear, drugstore • Fashion, furniture, toys, gear
items
24Deep dive: our more active sales approach includes
innovative and creative parts
Branding Campaigns # being the best daddy
Innovative
2-4 campaigns per year
Month Status # parenthood is a serious thing
Recurring- Campaigns # black friday
Creative
Fix planned Membership
Weeks # holidays are coming
Reactive – Promotion # brand „name x“ get 20% off
Diligent Needs
Ads supported Security
Days # in category get one free
25Success in DACH region is based on three pillars
Clear
Measures Margin ▲ Revenues ▲ Costs ▼
• Pricing • Increase • Building a vital
automation conversion rate community
• Marketing • Increase visits around our
support • Focus on offering
• Customer- customer • Leverage social
discrimination – retention media)
category mix • Optimize
content
26Working on unit economics on daily basis and mastering
our customers enables us to grow medium-term
We can steer our business pro-
Business actively with a strong focus on
profitbale growth
We understand our customer
base and have the right product
Environment
mix and marketing measures to
master our competition
27Agenda
1 Overall Status Alexander Brand & Konstantin Urban 3
2 DACH Mark Henkel 13
3 China Julia-Caroline Schmidt 28
4 Bebitus Guillem Sanz 55
5 Operations Jürgen Vedie & Michael Wend 71
6 Finance Topics Nikolaus Weinberger 84
28Capital Markets Day 2017 - China September 2017
Introduction
Julia-Caroline Schmidt
• 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
301. China‘s baby market: 2017 update
31High number of births underpin strong demand in China
17.86 million newborns in 2016
– the highest in 16 years
(Germany: 0,75 Mio.)
+8% in 2016
45% of newborns being second
child in their families
Source: Caixinglobal.com, January 23, 2017
32Continuous strong development for China’s Cross-
border e-commerce
2014 - 2020 China CBEC retail sales
• CAGR of 32% from 2014 to
Annual market revenue (Unit: USD bn)
2020
180
• The main sales driving
157,7
160 categories are:
144,2
140
129,1
• baby products
120 110,7
• health supplements
100
• beauty & personal care
85,8
80
57,1
60
40 30,1
20
0
2014 2015 2016 2017e 2018e 2019e 2020e
Source: eMarketer 33Tmall Global, JD Global and Kaola are Top 3 B2C
platforms in CBEC market
2016 Q4 Cross-border e-commerce market share
Others; 13,8%
Tmall Global; 18,9%
Suning Global; 1,9%
Tmall Global
Yang Ma Tou; 3,2% Taobao Global
JD Global
Jumei Global; 4,5% Kaola
VIP Global
Taobao Global; 15,4% Amazon AGS
Xiao Hong Shu; 5,0% Xiao Hong Shu
- C2C
Jumei Global
Yang Ma Tou
Amazon AGS; 6,6%
Suning Global
Others
VIP Global; 7,3% JD Global; 11,8%
Kaola; 11,6%
Source: Analysus 34Baby Nutrition Market (IMF + baby food) clearly dominated
by Danone brands Aptamil and Nutrilon
IMF & baby food (in USD bn) Top 10 brands (in USD mn)
MAT May 2016 MAT May 2017 # Brand MAT May 2017
1 Aptamil 645
2 Nutrilon 281
0,4 0,5 3 a2 platinum 155
4 HiPP 133
0,4
5 Friesland 111
0,5 1,4 6 Wyeth(excl.BabyNes) 103
1,9
7 Mead Johnson 102
8 Abbott 93
+42% 9 Bellamy‘s 80
C2C B2C FTZ
10 Gerber 73
C2C B2C FTZ
WeChat WeChat
IMF =Infant Milk Formula
MAT = Moving Annual Total
35
Source: Smartpath2. windeln.de‘s core business
36windeln.de‘s business driven by webshop, while Tmall
expanding rapidly
Revenues (in EUR Mio)
30
27,7
25
23,1
21,6
19,8
20
15
10
5
6% 7%
0% 0%
0
Q1 2016 Q1 2017 Q2 2016 Q2 2017
37Our website caters to the demands of Chinese families
Official partnership German Aptamil
• Clear focus on our top
category: baby milk powder
• Fully responsive design to
meet demands of mobile
affine Chinese customers
• Faster website access
38Key success factors: German quality, fast delivery &
localized payment
393. windeln.de’s expansion: Tmall Global
40Two channels targeting different consumer expectations
windeln.de webshop
• Loyal customer base
• ‚Less trust in platforms‘
• Detailed information offered
• Special promotions, product tests
Tmall Global Store
• Large customer base – promotion driven
• All for the Chinese family: highest quality
from Germany
• Focus on German origin
• Direct delivery from Germany & local
warehouse
41Reaching 430+ million monthly shoppers on Alibaba
platforms
Tmall Global Shop opening
✓ 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
423 months revenue sold in 24 hrs!
43The local warehouse has improved delivery times
between 3 to 7x (currently in test phase)
8-14
days
5-9
days
Test phase: Local warehouse delivery from China
max 2
days
44Warehouse 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)
454. How to win our customers
467 year anniversary: 5 lucky winners spent a week in
Germany exploring the windeln.de world…
Trip of a lifetime to Germany
✓ 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
47…deep insights into the expectations and experiences of
young Chinese parents…
48…Aptamil being the no.1 brand for IMF CBEC market
received special attention and focus…
49…ending with a visit to windeln.de warehouse and
preparing their own parcel with favourite items!
505. Market research
51Deeper understanding of the needs of the rising Chinese
middle class
Tier 2 cities on the rise
Chongqing
• >32m inhabitants,
• surface size of Austria
• „The biggest city in the world“
China’s middle class to account for >30% of its
population by 2030 (from 10% in 2015) Nanjing
• >8m inhabitants,
• 1hr northwest of Shanghai
• High birth rates and example
Source: SCMP.com, November 2016, the Economist Intelligence Unit upcoming tier 2 cities 52Market 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
53China strategy:
„Everything for the Chinese family“
❖ Continue growth in China business
Toys
❖ Drive up-selling
❖ Extend customer lifetime
Health
supplements
Baby Food
Appliances
54Agenda
1 Overall Status Alexander Brand & Konstantin Urban 3
2 DACH Mark Henkel 13
3 China Julia-Caroline Schmidt 28
4 Bebitus Guillem Sanz 55
5 Operations Jürgen Vedie & Michael Wend 71
6 Finance Topics Nikolaus Weinberger 84
55Capital Markets Day 2017 – Bebitus September 2017
Introduction
Dr. Guillem Sanz
• 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
57Who are we?
The biggest online shop specialized in
baby care products in Spain and Portugal
and with presence in France
Our story
January April October
2011 2014 2015 2015 2015
Birth of Bebitus, leader in Birth of Bebitus Birth of Bebitus joined
Bebitus the Spanish France Bebitus Portugal windeln.de Group
market
The first e-commerce in
Spain where you can find
all you need for your baby
in one shop
58Localized product portfolio
DIAPERS CAR SEATS STROLLERS
FOOD AT HOME TOYS
59The 7th best e-commerce in Spain according to customers
TOP 15 High score in all the
1. Zara.com
analysed categories
2. I-Neumáticos.es
3. Tiendanimal.es
4. Nespresso.com
The only baby care
5. Showroomprive.es
6. Amazon.es e-commerce in the TOP 12
7. Bebitus.com
8. HP.com
9. Andorrafreemarket.com
10. Zooplus.es
Survey done by OCU (Consumers and Users
11. Decathlon.es
Organisation) where 84 Spanish e-commerce
12. Apple.com
were analysed with the assessment coming
13. Kiabi.es
from 14.507 online purchases.
14. Madridhifi.com
15. Zalando.es
60Our market has great potential
SHARE OF E-COMMERCE
9,2% 4,1% 3,1% 13,5%
BIRTH / YEAR
786k 407k 87k 770k
BABY / WOMAN Important markets Lifetime value
among Europe recurrence
Similar assortment, communication
and demanded services
1,93 1,29 1,36 1,51
Source: Datos Macro, INE
61Market environment
E-commerce
€ 53,356M € 31,334M € 14,339M € 2,488M
volume 2017
CAGR 2017 - 2022 7.4% 9.6% 9.6% 11.0%
Internet
61.4% 65.4% 50.6% 53.6%
penetration 2017
Expected internet
65.6% 73.7% 65.9% 75.8%
penetration 2022
Estimated GDP per
€ 41.807 € 36.636 € 32.093 € 25.336
capita 2017
Amazon market
~20% ~10% ~7% Not present
share 2016
E-commerce markets differ slightly in terms of maturity and intensity of competition
Source: Statista.com, Netcomm, comScore
62A competitive environment
Online
Multi-
channel
Offline
Big markets dominated by offline = great opportunity for pure players
63Bebitus revenues
H1 2017
growth
yoy: 35%
Highlights
+81%
• Steady and strong
+135% growth
• Bebitus has plenty
+200%
of room to grow
• We will take
+233%
advantage of the
great increase of
2012 2013 2014 2015 2016 2017 (E.) internet
SPAIN FRANCE PORTUGAL
penetration in the
coming years
64Integrating Bebitus is a key project within STAR
measures to reach profitability for the Group
1 Focus of business model
• Stop flashsale of Nakiki
6 Enhance management team 2 Focus of products
• New COO / BU heads • Reduction of brands/SKUs
• New head of product mgmt. • Accelerate private label
STAR
5 Improve China business 3 Leverage European footprint
• Tmall shop • Relocate customer service
• Other China initiatives • Central purchasing
• Regional warehouse • Relocate central warehouse
4 Create operational excellence
• Integrate Feedo & Bebitus
• Automation Bebitus integration as a
• Cautious hiring policy
blueprint for Feedo
65Target set-up for Bebitus after the integration: What exactly
does it mean to be fully integrated to the SE?
Bebitus before… …and after the full integration
Suppliers Employees Suppliers Employees Employees Suppliers Employees
Suppliers
MUC BCN MUC BCN
… … …
Operating legal entity 100% owned Operating legal entity Operating legal entity 100% owned Service Company
Windeln.de SE Bebitus Retail S.L. Windeln.de SE Bebitus Retail S.L.
Customers Inventory Customers Inventory Customers Inventory
GB Arese
BW BCN
DE CH GB Uster ES FR BCN DE CH ES PT Uster
CN IT BW Arese PT
CN IT FR
Bebitus exclusively
renders services for
windeln.de SE
66The new organizational setup at Bebitus efficiently uses
Munich headquarter functions
Total of 55
FTEs
Bebitus Mgmt
(2 FTEs)
Category
Marketing & Channel Product Customer Debitor Operational Finance &
Mgmt./ Strat. Operations
CRM Mgmt. Data Mgmt. Service Mgmt. Purchasing Control.
Purchasing
FTE: 9,5 FTE: as today FTE: as today FTE: 3 FTE: 1,5 FTE: 16+1 FTE: 1 FTE: 3 FTE: 1
Central Group Functions:
IT, ERP, Product Mgmt., BI,
Accounts Payable, Legal, HR,
PR - no more FTEs locally
67A sneak peek of our new website from October 1st
Detail of the home page Category pre-page Menu
Promotions page
More colorful to match countries´ culture
68We expect top- and bottom-line effects due to synergies
and centralization after integration
Revenue-increasing effects through … Strengths Team Bebitus
• Broader access to supplier/product portfolio ✓ Entrepreneurial people
• Push of private label brands ✓ Exceptional team spirit & motivation
• Improved customer experience (e.g. faster shop,
✓ “Regardless of technology, we make it
responsive design)
happen” attitude
• Higher usage of analytics (BI, CRM)
✓ Deep understanding of the local markets
• Greater transparency in Finance & Controlling (due to
ERP)
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
69Who are we?
OUR TEAM
Very well-qualified young team
59 people
at the office
Motivated team
Sense of belonging
International vision
Thinking global, acting local 60 people
at the
Excited to be part of windeln.de group warehouse
(outsourced)
OUR OFFICES IN BARCELONA – PLAÇA CATALUNYA
70Agenda
1 Overall Status Alexander Brand & Konstantin Urban 3
2 DACH Mark Henkel 13
3 China Julia-Caroline Schmidt 28
4 Bebitus Guillem Sanz 55
5 Operations Jürgen Vedie & Michael Wend 71
6 Finance Topics Nikolaus Weinberger 84
71Capital Markets Day 2017 - Operations September 2017
Current warehouse setup
Berlin
Wroclaw
Prague Guangzhou
To be moved to
Poland in H1 2018 Test phase bonded
warehouse for Tmall
To be moved to orders
Poland in H2 2018
Central warehouse move
• Move of central warehouse to Wroclaw,
Poland in H1 2018
Arese • Close to German border, good basis for
Eastern Europe Expansion
• Experienced logistics provider in e-
commerce
Barcelona
• 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
73Further 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
74Case Study: Customer Care Outsourcing
May I introduce myself…
Michael Wend
• 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 76When 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
+
Delight the
customer
Fix the high
basics performance
zone
- + Technical/product/process
expectations
Fulfill the
Death zone
expectations
no
commodity
customers
Zone
-
Emotional
expectations
77Global customer service organization
Prague
Pecs
Milano
Saigon
Barcelona
windeln.de
External partners
78Outsourcing customer service – a major STAR measure
1 Focus of business model
• Stop flashsale of Nakiki
6 Enhance management team 2 Focus of products
• New COO / BU heads • Reduction of brands/SKUs
• New head of product mgmt. • Accelerate private label
STAR
5 Improve China business 3 Leverage European footprint
• Tmall shop • Relocate customer service
• Other China initiatives • Central purchasing
• Regional warehouse • Relocate central warehouse
4 Create operational excellence
• Integrate Feedo & Bebitus
• Automation
• Cautious hiring policy
79Project 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 • Contract sign • Partial closure CS • 30.4. full closure • July 1st CH
• Longlist near shore buw/Convergys Munich Munich customer service
service Providers • Start transition • June 1st customer exclusively in HU
• Call for offer project service Germany
• Evaluation • Dec 1stCall HU only in HU, Pecs
• On-site visits incl. most back
office tasks
80Targets, 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
81Transition in pictures
82Potential 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
83Agenda
1 Overall Status Alexander Brand & Konstantin Urban 3
2 DACH Mark Henkel 13
3 China Julia-Caroline Schmidt 28
4 Bebitus Guillem Sanz 55
5 Operations Jürgen Vedie & Michael Wend 71
6 Finance Topics Nikolaus Weinberger 84
84Capital Markets Day 2017 – Finance Topics September 2017
Break-even target in 2019 is unchanged…
Adj. EBIT margin in %
2016 2017 - 2019 2019
30-Jun Liquidity:
EUR 42m (2);
Cash burn in Q2
2+% p.a.1) EUR (6.3)m
H1 2017: +7 to 8%
(12.2)% in total
-14%
Current Adj. EBIT
STAR & other Growth / break-even in
Adj. EBIT
measures Scale effects course of
margin
2019
• Central warehouse • Market growth
• Adressed during
Integration • Online penetration
presentations today
• Warehouse CN • Intl. expansion
• ... • Customer satisfaction
We expect to grow on average at least 15% annually
1) Illustrative impact for 15+% annual revenue growth at flat operating expenses.
H1 2017:
2) Cash, time deposits and restricted cash as of June 30, 2017 +15.8% yoy
86…but our path to break-even is not a linear function
Revenue growth EBIT margin Liquidity
• We changed our marketing • The move of the central • We used to increase „safety“
approach and deliberately warehouse occurs in H1 2018 stock before an integration
reduced marketing spent in
Germany to focus on profitable • The integration of Feedo will • We will have cash out due to the
customer relationships – which occur in 2018 warehouse move
consequently lowered revenue
base
• We incur one-time costs • The bonded warehouse is great
associated with the preparation but it increases DIO due delivery
• Integration always includes of warehouse move and via ship
short-term risk to revenues integration of Bebitus and Feedo
• Our business is characterized by
a certain degree of seasonality
peaking in Q4 mainly due to
Christmas
87Considerations on segment disclosure
As of June 30, 2017 We are currently considering a change to
our segement reporting
Segment German Shop International
Shops
• With closure of the shopping club
Shops windeln.de Bebitus business model in Q2 2016 we reduced
nakiki.de Feedo the number of segments from 3 to 2
windeln.com.cn windeln.ch • Today we only run a „ready-to-ship“
business model
windelnde.tmall.hk pannolini.it
Rev. Share 66 % 34 % • We continue to integrate our
H1 2017 acquisitions
Disclosure Revenues and EBIT Revenues and EBIT
contribution contribution • We continue to centralize functions to
group functions
+ Regional revenue disclosure: • EBIT on segment level less meaningful
DACH, China, Rest of Europe
88You can also read
