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Capital Markets Day 2017
September 2017
2
This document and its related communication (“Presentation”) have been issued by windeln.de SE and its subsidiaries ( “Company”) and do not
constitute or form part of and should not be construed as any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe
for, any securities of the Company in the U.S.A. or in any other country, nor shall any part of it nor the fact of its distribution form part of or be relied on in
connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Company.
Nothing in this Presentation constitutes tax, legal or accounting advice; investors and prospective investors should seek such advice from their own
advisors. Third parties whose data is cited herein are neither registered broker-dealers nor financial advisors and the use of any market research data
does not constitute financial advice or recommendations. Securities may not be offered or sold in the U.S.A. absent registration or an exemption from
registration under the U.S. Securities Act of 1933, as amended; neither this Presentation nor any copy of it may be taken or transmitted or distributed,
directly or indirectly, to the U.S.A., its territories or possessions or to any US person.
This Presentation has been carefully prepared. However, no reliance may be placed for any purposes whatsoever on the information contained herein or
on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company or its directors, officers or employees or
any other person as to the accuracy or completeness of the information or opinions contained in this Presentation and no liability whatsoever is accepted
by the Company or its directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such
information or opinions or otherwise arising in connection therewith. This Presentation is subject to amendment, revision and updating. Certain
statements and opinions in this Presentation are forward-looking, which reflect the Company’s or its management’s expectations about future events.
Forward-looking statements involve many risks, uncertainties and assumptions that could cause actual results or events to differ materially from those
expressed or implied herein or could adversely affect the outcome and financial effects of the plans and events described herein and may include
(without limitation): macroeconomic conditions; behavior of suppliers, competitors and other market participants; inadequate performance with regard to
integration of acquired businesses, anticipated cost savings and productivity gains, management of fulfillment centers, hazardous material/ conditions in
private label production or within the supply chain, data security or market knowledge; external fraud; actions of government regulators or administrators;
strike; or other factors described in the “risk” section of the Company’s annual report. Forward-looking statements regarding past trends or activities
should not be taken as a representation that such trends or activities will continue. The Company does not undertake any obligation to update or revise
any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-
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This Presentation may include supplemental financial measures that are or may be non-GAAP financial measures. These supplemental financial
measures should not be viewed in isolation or as alternatives to measures of the Company’s net assets and financial positions or results of operations as
presented in accordance with IFRS in its consolidated financial statements. Other companies that report or describe similarly titled financial measures
may calculate them differently.
By attending, reviewing, accepting or consulting this Presentation you will be taken to have represented, warranted and undertaken that you have read
and agree to comply with the contents of this notice.
Disclaimer
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
• Relocate central warehouse
• Integration of Bebitus and Feedo
• Regional warehouse in China
• Accelerate private label
• 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
84Nikolaus WeinbergerFinance Topics6
71Jürgen Vedie & Michael WendOperations5
55Guillem SanzBebitus4
28Julia-Caroline SchmidtChina3
13Mark HenkelDACH2
3Alexander Brand & Konstantin UrbanOverall Status1
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
84Nikolaus WeinbergerFinance Topics6
71Jürgen Vedie & Michael WendOperations5
55Guillem SanzBebitus4
28Julia-Caroline SchmidtChina3
13Mark HenkelDACH2
3Alexander Brand & Konstantin UrbanOverall Status1
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
MAT May 2016
1,40,5
0,5
C2C B2C FTZ
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
84Nikolaus WeinbergerFinance Topics6
71Jürgen Vedie & Michael WendOperations5
55Guillem SanzBebitus4
28Julia-Caroline SchmidtChina3
13Mark HenkelDACH2
3Alexander Brand & Konstantin UrbanOverall Status1
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
• New COO / BU heads
Integrating Bebitus is a key project within STAR
measures to reach profitability for the Group
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.
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
Operating legal entity
Windeln.de SE
Operating legal entity
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
84Nikolaus WeinbergerFinance Topics6
71Jürgen Vedie & Michael WendOperations5
55Guillem SanzBebitus4
28Julia-Caroline SchmidtChina3
13Mark HenkelDACH2
3Alexander Brand & Konstantin UrbanOverall Status1
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
• New COO / BU heads
Outsourcing customer service – a major STAR measure
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.
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
84Nikolaus WeinbergerFinance Topics6
71Jürgen Vedie & Michael WendOperations5
55Guillem SanzBebitus4
28Julia-Caroline SchmidtChina3
13Mark HenkelDACH2
3Alexander Brand & Konstantin UrbanOverall Status1
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