Smartwares® on Descartes Customer day

22 January 2015

Introduction Smartwares®

Smart & accessible products for home & personal care

• Smartwares® is a fast-growing consumer goods company offering a rich selection of smart home essentials: Crisp, clever, well designed products to use in and around the home.

• Solid financial basis:

– Sales:

– EBITDA:

EUR 480 million

EUR 240 million

appr. 5 % of total sales

– Total Assets:

– Equity to Total Assets: 35%

• H2 Equity Partners is the majority shareholder ABN AMRO Participations and NPM Capital hold minority positions

– Leverage: < 2 x EBITDA

Smartwares® consumer goods

3 Leading player in 4 product arenas

Business arenas

Home Improvement Home Monitoring Home Appliances Nedac

Operating companies

Smartwares® Company Structure

Smartwares® consumer goods

The market is on fire

• European consumer goods markets are highly competitive and face challenging economic conditions

• Demand:

under pressure

• Consumers:

on the move; from traditional A-brands to value propositions

• Retail: on the move; from offline to online// from midmarket to value propositions

• Competition:

Smartwares® consumer goods

6 Smartwares® has delivered double digit growth each year

• We recognized in this particular time frame the opportunity to outpace competition and emerge as the winner in this arena. Driven both by autonomous growth and market consolidation.
• With an average market decline of -/- 5% in the last 3 years, Smartwares® has delivered double digit growth each year We implemented a 3 pillar strategy:

1. Autonomous growth
2. One Smartwares
3. Market Consolidator

1. Autonomous growth

7 Focus on the SMART-segment

Position to win

• In all global consumer markets the SMART segment is the winning one (H&M, Zara, IKEA)
• SMART meaning offering real value for consumers and retailers at aggressive prices
• NOT the traditional A brand domain of (some) value add but at inflated price premiums
• NOT the traditional commodity domain with no real value add Excellent execution
• Being the fast follower; revisit, reduce, refine the offering in our categories
• Work with retailers to develop differentiated category plans for them
• Be the leader in online development
• Focus on a high innovation & renovation rates
• Apply Smartwares® branding

Smartwares® Customers

Europe’s top retailers

2. One Smartwares®

9 One coherent set of entrepreneurial businesses that share a single lean and agile delivery machine

Building one platform

• One system, one way-of-working

• Highest quality AND lowest cost in the industry

• One Back office (Finance, HR, …)

• One IT (Business Applications/ERP, Office Automation, Commercial infrastructure ie online/social)

• One Supply Chain

Building multiple, business value add focused,

Operating Companies

• Full business ownership

• All differentiating value chain functions (development/purchasing/marketing/category management/sales)

3. Acquisitions

Over 30 acquisitions since 2001, and accelerating

Building one IT platform, the User perspective…

• Business people should have IT systems that help them to realize their enterprise value targets (more sales, more margin, less cost, more efficient wc).

• Business people should have no doubts on the

Building one IT platform, One business application suite…

SRC PDM

Produkt masterdata and datapool sync

Suppliers

Stock optimalisation

Sana software

E-commerce webshops

(Connect Solutions)

Invoice handling

Descartes Gateway (EDI)