Olivier’s Review

Barcelona 2014

Sales meeting

2013 Review

328M€+18% vs 2011

2013

Gross Margin17,2%

+15% vs 2012

2013

Ebitda5,1%

+25% vs 2012

2013

Vendor Analysis

2013 vendor analysis

2013 vendor analysis

Vendor stopped in 2013 • 21,3M€ Cisco• 18,5M€ Other– 18M€ UK– 0,5M€ France

• Total impact: 39,8M€– 15% GM (6M€)

Geographical Analysis

Problem solving

Regional split

2012 to 2013

FRANCE

France

France

France

France

France

France

SOUTH

South

South

South

South

South

South

DACH

Dach

Dach

Dach

Dach

Dach

Dach

BENELUX

Benelux

Benelux

Benelux

Benelux

Benelux

Benelux

NORDIC

Nordic

Nordic

Nordic

Nordic

Nordic

Nordic

UK

UK

UK

UK

UK

UK

Back to the basicsWhat is Exclusive Networks ss

ioss?

Exclusive Networks DNA

Security management

Content Delivery WANOptimization

SwitchingEndpoint Security

Network Security

Content SecurityWireless Lan

Bigtec DNA

Backup

Storage

WANOptimization

Compute

Switching

AnalyticsVirtualization

Our DNA

Backup Security management

Storage

Content Delivery WANOptimization

Compute

SwitchingEndpoint Security

Network Security

Analytics

Virtualization

Content SecurityWireless Lan

Our suppliers (vendors)

• Vendors who developed Disruptives technologies

• And want to come in Europe …

International development EMEA• EMEA market is huge• EMEA market is complex and expensive to

address:– It’s far away, time difference– Multiple Countries (67)– Multiple Languages (40)– Different cultures

• IT Vendors want to go as fast as possible

Long road to do business in EMEA

Direct

• Targeted lead generation

• Lead qualification

• Lead management

• Sales enablement

• Customer acquisition

Partners

• Channel readiness

• Partner recruitment

• Onboarding and training

• Channel development

• Partner support

• Partner program management

Technical services

• Presales• Training• Proof of

concept• Support

(24X7)• Professional

services

Marketing & Communication

• Press relation

• Trade show• Lead

detection• Direct

marketing• Local

advertising• Local pricing

model &discount

Admin/Logistic

• Inventory management

• Shipment and financial risk

• Exchange rate risk

Multiply by the number of countries…

What vendors do

• They can’t do everything by themselves!– Too many countries– Too many people to hire from day one

• They start with a small team (2 to 6)• They decide to scale through partners• They outsource most of the tasks to an external

company:– To accelerate the process– Minimize the cost– Minimize the risks

We are an extension of the vendor team!• Benefits for the vendor– Ready made team of experts– Less Cost– Faster Go To Market – variable cost– It’s much less risky– scales up or down as needed

Provide 5 Stars services On behalf of Vendors for resellers

Sales

Technical Marketing

Financial

Admin LogisticBusiness

intelligence

Sales• Account focused sales teams • Vendor focused dedicated product teams • Partner recruitment• Partner management• Sales training• Demand creation• End user meeting

Marketing• Communication & PR• Pan European Campaign• Reseller incentive• Solution marketing

• Marketing Consultancy• Online marketing• Event management

Technical• Presales• Demo centre• Proof of Concept• Staging• Professional services• Training• RMA• 24X7 Technical Support

Logistics• Inventory management• 14 distribution centre across EMEA• Demo stock• Next day shipment• International deployment– delivery DDP to territory– Quotation on demand

Admin & Financial• Exchange rate management• Cash collection• Working Capital financing• Financial Lease• Point of Sales (PoS) for

vendors• Import & Export licence

process

Business intelligence• Full analysis of historical Business• Real time access to invoicing and order intake• Access for vendors• Multi country• Reseller activity• End User visibility• Run rate vs Project

Our approach must be vendor centric

Vendor Go To Market strategy

Prepare• Discovery &

understanding• Reseller profiling• Sales training• Technical training• Local pricing & discount

structure• Target

Engage• PR• Marketing activities• Demand creation• Reseller meetings• Reseller training• …

Monitor• Business Intelligence• Figures analysis• Number of resellers• Monthly Business

review

Bespoke approach for vendors

Presales

End users meeting

Partner enablement

Stocking

24X7 Support

Marketing campaign

Partner recruitment

Leads detectionTechnical Training

Channel readiness

Local Price list& discount structure

Proof of concept

Press RelationInternational shipment

We must consider that Vendors needs are

changing with the time

We must be aligned with vendor expectations

What are the benefits of making the Vendors Happy

• Better margin• More business• More marketing money• Less competition (Sole distribution)• More territories

Are they Happy today?

Do we meet their expectations?

We did a Vendor survey in France in December

• 11 vendors• 31 contacts– Sales, Presales, Management

• Anonymous, tell what you think…• Performed by an external company

Conclusions:

To be a SuperVAD, EN must continue to have a business model different than the competition and improve its Sales skills (performances or capacity)

« Exclusive » positioning is key• More investments on training on new vendors

and new technologies• More incentives to sales people :– On new vendors– On New Technologies from Legacy vendors

• Avoid conflicts of interests

Improvement of Business development

• Focus on recruitment of new partners• Generate more end-users leads• Align the sales resources with the growth

of the vendors• More dedicated Sales and Technical

resources

AMR recommendations

1.Introduce Management by Objectives (MBO)• Put in place Quantity and Quality target–Number of new resellers– Level of expertise on new technologies–Number of technical meeting–Revenue & Margin targets on new vendors

and new products–….

2.Align the resources with vendors expectations

• More dedicated sales for legacy vendors• Adjust the technical resources by

vendors:–What level of expertise?–What time allocated to a vendor ?

• Additional resources?

3.Put in place action plan for each vendor

• Action plans have to be clear and simple• Quantity and Quality targets• KPI easy to measure• Quarterly review of the plan with the

vendors

4.Clarify the competition situation

• « Chinese wall » between sales people of competitive vendors

• Define a clear Go to Market strategy for each competitive vendors:– Targeted resellers and customers

5.Hire more « Hunters »

• New sales people financially incentivized and focus on:–Partner recruitment– Launching of new technologies– Leads detection (end-users)

6.Improve the skill of the team on New products• More training for engineers• More dedicated technical peoples• Create a « Network » of early adopters

resellers• More sales training – Internally– For the partners

Vendors expectations

Trust

Business developmentPartnership

Competences

Focus

Technical skills

Proactive

Marketing campaign

Partner recruitment

Leads Generation

Keys of the success

Good vendorsGood people

Quality of execution

2014 Budget

500M€+52,2% vs 2013

2014

Gross Margin16,5%

+45,8% vs 2013

2014

Ebitda5,3%

+62% vs 2013

2014

2013 to 2014 budget

2013 to 2014 budget

Geographical split

2013 to 2014 budget

Vendor Split