# 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)