Brussels, 24-25 November 2010




3PL Strategies for Moving to
       New Markets


                 Slawomir Blotny
Vice-President of the Board / Key Account Executive
                    Raben Group
2
The dilemma




98 600 m2             EBITA

ROI              98,2%

       7 424 893€

                              3
Agenda

• Introduction of Raben Group

• How we entered the countries we now operate in

• The advantages and challenges of starting operations in new
  markets vs. acquisitions

• Lessons learned




                                                                4
Raben Group – Employment


6000


                                                                                                          5200 *
5000
                                                                                                        4700
                                                                                                 4500

4000                                                                                      4000

                                                                                   3500

3000                                                                        3000

                                                                     2300
2000                                                          2000
                                                       1600
                                                1150
1000
                                          700
                                   209
  0       1                  50
       1931               1991 1994 1997 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010


              Data at the end of each year
              * status as at 31.10.2010                                                                        5
6
Raben Group’s operations in Europe




                 Raben Group depots

                 countries in which branches of Raben Group are located

                 countries covered by Raben Group services
                                                                          7
Raben Group


• Family-owned & family-managed

• Group of companies with serious intention of
  growth

   • Focus on Customer Service

• Corporate rules of management

• Employment - ca. 5200

• Total warehouse capacity - ca. 485.000 m2

• Transport means at disposal - ca. 4000
                                                 8
How we entered the countries
    we now operate in
• Our vision is     To Become a Leader
                    Everywhere We Are


• Growth scenarios are:

   • organic growth or

   • acquisitions




                                         10
• Organic growth:


   • Field sales

   • Key Account sales

   • High sales retention through the best customer service




                                                              11
Analyze...
   &
Rabenize.
             12
• Acquisitions:

   • Product fit

   • Company culture

   • Position in the market

   • Management capabilities

   • Profitability




                               13
The advantages and
  challenges of starting
operations in new markets
     vs. acquisitions
Culture



  Yes                   No




Organic
                    Acquisition
growth




 Stable             Unstable
company             company
                                  15
Culture




                  Yes             No

•   Culture

     • Local

     • Business




                                       16
Organic growth                                        Culture




                                                                                         Yes             No


                                                                                        Organic
                                                                                        growth




                Advantages                                         Challenges
                                                 Customers, business partner need a long time
implementation of own processes
                                                 to give trust to the new organisation
perfect match with the company vision,           long way to achieve satisfying market
mission, strategy, products                      share/critical mass to be cost effective
create own organization culture, people act in
                                                 difficulties to hire excellent staff
the same direction

investment can be spread over longer period      overpay salaries



                                                                                                              17
Stable company          Culture




                                              Yes             No


•   Acquisitions of a stable company         Organic
                                                         Acquisition
                                             growth

     • Financial performance
                                              Stable      Unstable
                                             company      company
     • Management capabilities

     • Customers

     • Market shares

     • Operations




                                                                   18
Stable company                              Culture




                                                                               Yes             No


                                                                              Organic
                                                                                          Acquisition
                                                                              growth



                                                                               Stable      Unstable
                                                                              company      company




                  Advantages                                    Challenges
integration plan - 100 and 360 days             CEO? If owner, what is his/her future like?

providing managers with new opportunities for   own funds needed in today’s financial market
career growth                                   situation
you can share the best practices
buy „healthy” market share, Customers,
Employees, know how

synergy effects

                                                                                                    19
Unstable company               Culture




                                                   Yes             No


•   Acquisition of an unstable company            Organic
                                                              Acquisition
                                                  growth

     • Financial performance - low      or
                                                               Unstable
                                                               company
     • Management capabilities - poor        or
     • Customers - not satisfied   or
     • Market shares - low   or
     • Operations - low/poor level




                                                                        20
Unstable company                                Culture




                                                                                  Yes             No


                                                                                 Organic
                                                                                             Acquisition
                                                                                 growth



                                                                                              Unstable
                                                                                              company




                Advantages                                       Challenges
                                                difficulties to explain this path to shareholders
synergy effect possible
                                                and stakeholders
providing managers with new opportunities for   integration plan with support of full team (HQ,
career growth                                   other BUs’ of the Raben Group and local)

                                                skeletons in the closet

                                                own funds needed in today’s financial market
                                                situation

                                                CEO? If owner, what is his/her future like?

                                                                                                       21
Rabenizing starts from...




                            22
Values at the Raben Group




Entrepreneurship

Customer Orientation

We Act With Passion


Professionalism

Reliability
                             23
Lessons learned
Lessons learned



• The culture of the company, especially its management is crucial

• It seems that our business units do much better if their HQs
   are located outside the countries' capitals

• Due diligence may show good financial and legal result but this
   does not mean that operations and customer relations are at
   expected level

• International company versus local entrepreneur

• We do not have to be present everywhere



                                                                     25
Rabenizing in progress



Total: 485,000m2
                              Poland
                            250,000m2


              Germany                              Baltic States
              70,000m2                              3,000m2


                                                              Ukraine
                                                             50,000m2


                 The
              Netherlands
                                               Hungary
               4,000m2
                                               22,000m2


                   The Czech Rep. / Slovakia
                          85,000m2




                                                                        26
No matter which solutions you choose…


Just remember…




                                               27
You have plenty of nails in each decision,
   the key is to choose the proper one




                                             28
Thank you for your attention!
If you have any questions,
please, do not hesitate to ask
now or contact us later:


Slawomir Blotny
Vice-President of the Board / Key Account Executive
Raben Group
phone: + 48 61 89 88 219
e-mail: Slawomir.Blotny@raben-group.com



                                                      29

3PL Strategies for Moving to New Markets, Slawomir Blotny, Vice President of the Board, Raben Group

  • 1.
    Brussels, 24-25 November2010 3PL Strategies for Moving to New Markets Slawomir Blotny Vice-President of the Board / Key Account Executive Raben Group
  • 2.
  • 3.
    The dilemma 98 600m2 EBITA ROI 98,2% 7 424 893€ 3
  • 4.
    Agenda • Introduction ofRaben Group • How we entered the countries we now operate in • The advantages and challenges of starting operations in new markets vs. acquisitions • Lessons learned 4
  • 5.
    Raben Group –Employment 6000 5200 * 5000 4700 4500 4000 4000 3500 3000 3000 2300 2000 2000 1600 1150 1000 700 209 0 1 50 1931 1991 1994 1997 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 Data at the end of each year * status as at 31.10.2010 5
  • 6.
  • 7.
    Raben Group’s operationsin Europe Raben Group depots countries in which branches of Raben Group are located countries covered by Raben Group services 7
  • 8.
    Raben Group • Family-owned& family-managed • Group of companies with serious intention of growth • Focus on Customer Service • Corporate rules of management • Employment - ca. 5200 • Total warehouse capacity - ca. 485.000 m2 • Transport means at disposal - ca. 4000 8
  • 9.
    How we enteredthe countries we now operate in
  • 10.
    • Our visionis To Become a Leader Everywhere We Are • Growth scenarios are: • organic growth or • acquisitions 10
  • 11.
    • Organic growth: • Field sales • Key Account sales • High sales retention through the best customer service 11
  • 12.
    Analyze... & Rabenize. 12
  • 13.
    • Acquisitions: • Product fit • Company culture • Position in the market • Management capabilities • Profitability 13
  • 14.
    The advantages and challenges of starting operations in new markets vs. acquisitions
  • 15.
    Culture Yes No Organic Acquisition growth Stable Unstable company company 15
  • 16.
    Culture Yes No • Culture • Local • Business 16
  • 17.
    Organic growth Culture Yes No Organic growth Advantages Challenges Customers, business partner need a long time implementation of own processes to give trust to the new organisation perfect match with the company vision, long way to achieve satisfying market mission, strategy, products share/critical mass to be cost effective create own organization culture, people act in difficulties to hire excellent staff the same direction investment can be spread over longer period overpay salaries 17
  • 18.
    Stable company Culture Yes No • Acquisitions of a stable company Organic Acquisition growth • Financial performance Stable Unstable company company • Management capabilities • Customers • Market shares • Operations 18
  • 19.
    Stable company Culture Yes No Organic Acquisition growth Stable Unstable company company Advantages Challenges integration plan - 100 and 360 days CEO? If owner, what is his/her future like? providing managers with new opportunities for own funds needed in today’s financial market career growth situation you can share the best practices buy „healthy” market share, Customers, Employees, know how synergy effects 19
  • 20.
    Unstable company Culture Yes No • Acquisition of an unstable company Organic Acquisition growth • Financial performance - low or Unstable company • Management capabilities - poor or • Customers - not satisfied or • Market shares - low or • Operations - low/poor level 20
  • 21.
    Unstable company Culture Yes No Organic Acquisition growth Unstable company Advantages Challenges difficulties to explain this path to shareholders synergy effect possible and stakeholders providing managers with new opportunities for integration plan with support of full team (HQ, career growth other BUs’ of the Raben Group and local) skeletons in the closet own funds needed in today’s financial market situation CEO? If owner, what is his/her future like? 21
  • 22.
  • 23.
    Values at theRaben Group Entrepreneurship Customer Orientation We Act With Passion Professionalism Reliability 23
  • 24.
  • 25.
    Lessons learned • Theculture of the company, especially its management is crucial • It seems that our business units do much better if their HQs are located outside the countries' capitals • Due diligence may show good financial and legal result but this does not mean that operations and customer relations are at expected level • International company versus local entrepreneur • We do not have to be present everywhere 25
  • 26.
    Rabenizing in progress Total:485,000m2 Poland 250,000m2 Germany Baltic States 70,000m2 3,000m2 Ukraine 50,000m2 The Netherlands Hungary 4,000m2 22,000m2 The Czech Rep. / Slovakia 85,000m2 26
  • 27.
    No matter whichsolutions you choose… Just remember… 27
  • 28.
    You have plentyof nails in each decision, the key is to choose the proper one 28
  • 29.
    Thank you foryour attention! If you have any questions, please, do not hesitate to ask now or contact us later: Slawomir Blotny Vice-President of the Board / Key Account Executive Raben Group phone: + 48 61 89 88 219 e-mail: [email protected] 29