Hawesko Holding AG November 2000 1 Hawesko Holding AG W E L C O M E !

Hawesko Holding AG November 2000

1

Hawesko Holding AG

W E L C O M E !W E L C O M E !


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Corporate Mission StatementCorporate Mission Statement

To be the key player in the premium European retail wine market, building on strengths:

• in German home market,

• in database marketing skills,

• in product sourcing.


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Growth in the major wine marketsGrowth in the major wine markets

• Higher number of wine consumers

• More wine import activity

• Increasing demand for premium wines


4

Wine market in GermanyWine market in GermanyP

ric

e le

ve

l

Premium-wine segment is about 25% of DM 11.4 billion market

Premium wines: ca. DM 2.9

bn*

Premium wines: ca. DM 2.9

bn*

> DM 7 perbottle

* Source: macrom, 1999 and Hawesko

Target segmentof the

Hawesko Group

Discount food outlets, ALDIDiscount food outlets, ALDI

Food retailers and Food retailers and

department storesdepartment stores

VineyardsVineyards

Mail order Mail order Specialty Specialty

retailersretailers


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Hawesko Holding AG - Business linesHawesko Holding AG - Business lines

Mail-order business Trading names:

- Hanseatisches Wein- und Sektkontor (founded 1964)- Carl Tesdorpf (founded 1678)- Winegate (internet)- The Wine Company- Le Monde des Grands Bordeaux

Target customers:high-income private individuals/ companies

Price segment: > DM 10 / bottle

Address database: approx. 700,000

2000e sales: ca. DM 188 m

Employees: 302

Wine wholesale and

distribution Trading names:

- CWD Champagner Wein Distribution (founded 1986)- Wein-Wolf (founded 1981)

Target customers:Restaurants, caterers, shops

Price segment:> DM 10/ bottle

Address database: approx. 20,000

2000e sales: ca DM 119 m

Employees: 75

Specialty wine-stores Trading name:

Jacques‘ Wein-Depot(founded 1974)

Target customers:private customers

Price segment:> DM 7 / bottle

Outlets: 190 with a continuous direct-mailing campaign targeting 400,000 customers

2000e sales: ca. DM 143 m

Employees: 48Agency Partner: 144


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Mail-Order Business


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Mail-Order Wine MarketMail-Order Wine Market

Wines selling for over

DM 7.00*per bottle

DM 405

million*

Higher-quality Segment

All German Mail-Order Businesses

14%

Source: macrom (Cologne), 1999

DM2.9 bn*

Total German Wine Market

DM 11.4 bn*DM 2.9 bn*

Total German Wine Market

*end-consumer prices including sales tax


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Top Ten Mail-Order Distributors

176Hanseatisches Wein- und SektkontorHAWESKO

Main players in German mail-order wineMain players in German mail-order wine

1998 sales to private customers in DM millions*

5

6

6

7

12

12

13

14

16

0 25 50 75 100 125 150 175

Bremer Weinkolleg

Pro Idee

Alpina

FUB

Savour Club

Mövenpick Weinland

Weinart

LV. Kapff

Brogsitters

Source: macrom (Cologne) 1999, Hawesko

200


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Market positioning: Mail-orderMarket positioning: Mail-order

• Price class: Premium / Superpremium

• Extensive international product range with special emphasis on France

• Colourful, glossy main catalog built around individual wines; frequent mailings

• Price class: Ultrapremium

• Extensive international product range with emphasis on Italy, France and Spain

• Distinguished main catalog built around wineries and terroir; mailings in respectable intervals


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Competence center built around

Hanseatisches Wein- und Sekt-Kontor

• Customer base with purchasing power and propensity towards luxury goods

• Direct marketing systems- continual analysis and management of customer value base- niche targeting of sub-groups possible

• Purchasing advantages- long, well-established relationships with producers- exclusive products

• Productive use of data processing

• Modern logistic systems

Market positioning: Mail-orderMarket positioning: Mail-order


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Wine retail businessWine retail business


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Retail Wine Market in GermanyRetail Wine Market in Germany

*macrom (Cologne) 1999, plus estimates based on Geisenheim Wine Instituteend-consumer prices based on 1998 figures including sales tax

Jacques´ is the market leader in retailing of high quality wines through specialty shops in Germany (in FY 2000 over 195 depots)

market share ofwine specialty shopsca. 18% on DM value

market share Jacques’ Wein-Depot: 1.5 %

wine marketexcludingcatering

DM 11.4 bn*

DM 2.1 bn*

Total Wine Market

DM130 m

Jacques'

Higher-quality Segment

DM2.1 bn

market share Jacques’ Wein-Depot: 7 %


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Market positioning: Jacques‘ wine shopsMarket positioning: Jacques‘ wine shops

• Type of franchise system with independent shop managers motivated by their stake in the shop.

• Low cost structure because of location and simple shop fittings, limited opening hours.

• Centrally coordinated location planning: demographic fit and convenience for motorists a must: 30 additional locations identified per year and in the planning pipeline for the next 3 years.

• Medium- to medium-high price segment: lesser known wines and excellent value. All wines may be tasted before purchase.

• International product range exclusive to Jacques’ in Germany with emphasis on France and Italy, increasingly Spain and New World wines.

• Monthly mailings trigger regular visits to the local shop.


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Jacques’ history of growth Jacques’ history of growth

In ten years, Jacques’ has doubled the number of shops and maintained productivity levels

599 622663

707 713 695749

782

706

0

100

200

300

400

500

600

700

800

1989

1990

1991

1992

1993

1994

1995

1996

1997

in TDM

Sales per Depot

755

1998

760

1999

79 83 85 8792

100

117

130

107

0

20

40

60

80

100

120

140

1989

1990

1991

1992

1993

1994

1995

1996

1997

Number of Depots148

1998

165

1999


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Jacques’ Wein-DepotJacques’ Wein-Depot

New openings on the increaseNew openings per year

Total number of shops

83 85 8792

100107

117

130

148

165

200

4

2 2

5

87

10

13

1817

35

0

20

40

60

80

100

120

140

160

180

200

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

0

5

10

15

20

25

30

35

Number of Depots New openings


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Wholesale Business Wholesale Business


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Wholesale segmentWholesale segment

Big wholesale players by turnover in DM millions

80,075,0 75,0

15,0 13,09,5

18,0

83,0

0

10

20

30

40

50

60

70

80

90

100

Hawesko estimates, net of sales tax


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Wholesale segmentWholesale segment

• Product assortment based on specialties such as Taittinger, Torres, Antinori, which supple-ment the range of Hanseatisches Wein- und Sekt-Kontor

• Sales representatives take care of over 5,000 top-flight restaurants

• The best adress in Germany for eau-de-vie, designer bottles and special Italian wines

• Product assortment based on that of Hanseatisches Wein- und Sekt-Kontor

• Direct sales to over 5,000 caterers and specialist re-sellers, based on infrastructure of Hanseatisches Wein- und Sekt-Kontor

• Small lots, fast drop-delivery service


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Online wine salesOnline wine sales


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Wine & Spirits

Perfume

Furniture

Jewelry

Clothing

Hardware

Books & CD's

Software

0 1 2 3 4 5 6

Source: EHI, Cologne

Wine is well-suited to order on the internet


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Online wine market in Europe: Set to grow to between 600 million DEM and 2 billion DEM

1999 2000 2001 2002 2003

80

20

eTail wineF, I, D, UKin DEM m

Scenario II: Expected maximal market with a growth factor of 3 p.a. 2 billion DM

600 million DM

Scenario I: Expected minimal market with a growth factor of 2 p.a.

Sales of the largest wine e-player

Sales incl. online food retail

Sources: Arthur D. Little,Lebensmittel-Zeitung


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Online wine sales Online wine sales

Hawesko is the German market leader:1999 online wine sales in DM ’000

130

150

200

600

700

2100

Genussreich

Weinexpress

Weinbestellung

Chateau Online

Rouge & Blanc

Winegate (Hawesko)

Source: Macrom, Cologne 2000. Figures include sales tax


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Since Winegate launch, online orders and online sales have been much higher than last year

91.874

343.303

467.277

585.478616.436

1.031.786

960.022

127.444

67.82476.65843.525

91.96979.06957.118 73.254

74.138

877.809

741.932742.409747.614

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1999 2000

Sales in DM

172 213 208 246 269 259 242142

226

378

778

9791.062

975

1.813

1.4351.3971.383

1.176

1.866

0

200

400

600

800

1000

1200

1400

1600

1800

2000

1999 2000

No. of orders


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• Extensive product offer and long-standing relationships to the best wine producers

• Modern infrastructure for order and delivery logistics

• Expertise in database marketing und mail-order

• Years of internet experience (since 1996)


Hawesko has built-in advantages:


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Online wine sales trend to 2001 e (in DM millions)


1996 1997 1998 1999 2000e 2001e

0,60,20,051,9

12,0

8,0

16,0

21,0

estimate range


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The Worldwide Wine Market The Worldwide Wine Market

• The worldwide wine market is estimated in DM 150 to 200 billion.

• The wine market in Germany:Total: approx. DM 12 billionHigh-quality wines: approx. DM 3 billion

• Market share of the Hawesko Group in the high-quality sector:Germany: approx. 14%Worldwide: approx. 2%


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Growth in the Wine MarketGrowth in the Wine Market

• 5% growth p.a. in the worldwide market for high-quality wines from - DM 27 to 30 bn in the year 2000 to - DM 40 to 50 bn in 2010

• Expansion of the worldwide market share from currently below 1.5% to approx. 5%

• Turnover of DM 2.0 - 2.5 bn in 2010


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Steps AbroadSteps Abroad

• Austria The Wine Company- first mailing in March 2000

• UK - launch of winegate.co.uk

• France - acquisition of Bordeaux wine trader Le Monde des Grands Bordeaux

• Poland - start with shareholding in wholesaler

• Expansion into other major European markets


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Goals of the Hawesko GroupGoals of the Hawesko Group

• Strengthen our market leadership in Germany, including better use of existing resources

• Develop our foreign operations

• Continue to be a catalyst for change in the highly-fragmented premium-wine market


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Hawesko Holding AG

Thank you for your attention!Thank you for your attention!


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Hawesko Holding AGHawesko Holding AG

Documents

Hawesko Holding AG November 2000 1 Hawesko Holding AG W E L C O M E !