Revenue DOCDATA N.V. grows in 2013 to almost € 167 million
with a net profit of € 8.7 million
• Both Docdata and IAI realise revenue growth in 2013
• Operating profit before financing result, depreciation and amortisation
(EBITDA) increases to € 20.3 million in 2013 (2012: 17.4 million)
• IAI order book grows to € 10.5 million per end 2013 (2012: € 7.0 million)
• Impairment UK fulfilment activities recorded of € 3 million
• Proposal to distribute dividend of € 0.70 per share out of profit per share
of € 1.24 (2012: € 0.55 dividend per share from € 1.09 eps)
• New strategy determined: ‘Vision 2020: “Smart Growth”’
Michiel Alting von Geusau, CEO of DOCDATA N.V.: “IAI and Docdata
have had a very good year with excellent results. Both companies have
contributed to the growth of the revenue and the profit. In 2013, we have
started activities in Poland and Italy with own companies. IAI has delivered
multiple orders and managed to win several very promising orders. The
pressure on the gross profit margins of both companies remains, which
forces us to focus on costs permanently. This also encourages us to find
smart and efficient solutions. Our service and quality remain high;
something we, but also our clients, are proud of. The markets of Docdata
and IAI offer enough chances and opportunities for further growth. We have
determined our strategy for 2020 with the motto ‘Smart Growth’; a
description thereof is attached to this press release.”
Revenue 166.9 100.0 152.8 100.0
Gross profit 37.0 22.2 33.6 22.0
EBITDA 20.3 12.2 17.4 11.4
EBITA 15.6 9.3 12.9 8.4
Operating income (EBIT) 11.1 6.7 11.0 7.2
Profit for the year 8.7 5.2 7.6 5.0
Basic earnings per share 1.24 1.09
Balance sheet total 88.6 83.1
Equity 42.8 37.5
Solvency ratio (Equity / Balance sheet total) 48.3% 45.2%
Exhibit 1: Table Major features of financial results and financial position 2013 and 2012
The revenue development of DOCDATA N.V. for the years 2002 to 2013 can be
presented as follows, showing the transformation of the nature of the Company activities
and revenue growth over the years.
Exhibit 2: Graph revenue development 2003-2013
Revenue of DOCDATA N.V. has increased in 2013 with 9% to € 166.9 million. This
revenue increase has been fully realised autonomously by the increased transaction
volume of Docdata and the higher number of orders delivered by IAI. In 2013, the share of
our largest client in Germany in the total revenue of the Group decreased as expected to
31%. The share of our largest client in the Netherlands in the total revenue of the Group in
2013 again exceeded 10%.
(in thousands, except for percentage figures) € € %
Docdata 149,141 142,835 + 4%
IAI 17,780 10,001 + 78%
Total 166,921 152,836 + 9%
Exhibit 3: Table revenue 2013 and 2012
In 2013, a higher gross profit of € 37.0 million was realised compared to € 33.6 million in
2012, mainly due to the sales growth. The gross profit margin of 22.2% is in line with last
year.
The operating profit before financing result (EBIT) in 2013 amounts to € 11.1 million
compared to € 11.0 million for the prior year. In 2013, net other operating expenses for
€ 2.6 million has been recorded as incidental (non-recurring) costs. In 2012, an amount of
€ 0.9 million was recorded for net other operating expenses. Excluding these
non-recurring costs in both years, the EBIT would have increased from € 11.9 million in
2012 to € 13.7 million in 2013. As announced in our interim notice for the third quarter of
2013, the developments in the United Kingdom fell short of expectations. For that reason
an impairment has been recorded for a total of € 3.0 million and a restructuring provision
has been recognised for € 0.2 million.
The profit for 2013 amounts to € 8.7 million and is 14% higher compared to the profit for
2012 (€ 7.6 million). The net financing result in 2013 was € 0.1 million negative as a result
of foreign currency exchange effects (2012: nil). The lower income tax expense is mainly
the result of a combination of non-recurring costs for the goodwill impairment that are not
tax deductible, the valuation of deferred tax assets for net operating losses in Germany
and a one-off income tax gain of € 1.3 million due to realising the liquidation loss
(€ 5.2 million) on the former French Docdata replication activities. This liquidation process
was completed in September 2013.
The financial position of DOCDATA N.V. remained strong with a solvency ratio of 48.3%
per 31 December 2013 (31 December 2012: 45.2%). The improved solvency is the
combined effect of the main movements in equity: the profit for the year (€ 8.7 million) and
the dividend paid in May 2013 out of the 2012 profit (€ 3.9 million). The balance sheet
total per 31 December 2013, excluding the effect of the non-restricted cash of the
Stichting foundation docdata payments), increased to € 75.1 million (31 December 2012:
€ 71.3 million).
Capital expenditure
In 2013 more than € 7 million was invested in tangible fixed assets for the further
expansion of the capacity in Waalwijk, Groβbeeren and Schwiebodzin (Poland). This is
mainly storage facilities, smart fulfilment and returns solutions and IT hardware for
Docdata. Furthermore, € 1.4 million was invested in intangible assets. This mainly
concerns the completion of the development for the new generation of the BookMaster
One
®system by IAI as well as IT development costs for Docdata’s payment platform.
These investments contribute to the growth of both companies to offer existing and new
clients the highest quality of services.
The permanent staff employed by the Group increased in 2013 with 12% to 1,266
employees (1,211 FTE) as a result of autonomous growth, mainly of the activities in the
Netherlands and Germany (2012: 1,129 employees; 1,062 FTE). Finding the right people
that fit within the specific culture of our Company remains an important priority for us. Our
success continues to depend on our permanent and hired employees. The employees
who work with us and for us, consider us a good employer. Our policy is focused to
maintain this and to receive and implement improvement observations that come from
within the organisation in a timely manner.
Outlook
2014 will be a year in which we are fully focused on bringing in new clients and orders to
show growth again in 2015.
For 2014, we expect a lower revenue for Docdata due to a strong decline of the revenue
for our largest client. Early 2014, we however signed agreements for strategic
partnerships with several new clients with potential. Furthermore, IAI has an excellent
order book and a healthy pipeline, which are a good basis for 2014 and beyond.
Today, we are launching our new strategy ‘Vision 2020: “Smart Growth”’ that will be
implemented in 2014.
Strategy: ‘Vision 2020: “Smart Growth”’
Our strategy “Growth through Quality” has been achieved and we have set out the
strategic directions for the comings years in our new strategy ‘Vision 2020: “Smart
Growth”’. With this vision we will bring innovative solutions as custom-made service for
specific business models of our clients and the markets in which they operate. We explain
our Vision 2020: “Smart Growth” in the enclosure to this press release. This enclosure can
also be downloaded from the corporate website of the Company,
www.docdatanv.com
.
Dividend
Management of DOCDATA N.V. will propose to the shareholders at this year’s annual
General Meeting of Shareholders, in accordance with Article 28 of the Articles of
Association of DOCDATA N.V., to decide to distribute to all shareholders of ordinary
shares a dividend amount of € 0.70 per ordinary share out of the profit for the year 2013.
The distribution will be subject to dividend withholding taxes, unless the shareholder can
prove that substantial holding exemption can be claimed.
The dividend policy of DOCDATA N.V., adopted by the General Meeting of Shareholders,
is aimed at realising a high dividend return, for which a payout ratio of at least 50% is the
target. The liquidity and solvency required for the execution of the strategy, will also be
taken into consideration. Management of DOCDATA N.V. holds the opinion that the very
strong liquidity and solvency of the Company enable the proposed dividend distribution of
€ 0.70 per share.
ordinary shares with a nominal value of € 0.10 each. DOCDATA N.V. currently holds no
ordinary shares to fund the Performance Share Plan. Ordinary shares owned by the
Company are not entitled to any distribution of profit. When the General Meeting of
Shareholders decides to accept this proposal, an amount of € 4.9 million will be distributed
in May 2014 as dividend out of the profit for the year 2013 on the ordinary shares, which
are held by other shareholders than the Company. The General Meeting of Shareholders
shall be held on Tuesday 13 May 2014 in Waalwijk. The dividend distribution will lead to a
decrease of the solvency ratio with some percent-points.
Exhibit 4: Graph development dividend (per share) 2000-2013
Performance Share Plan and purchase of own shares
On 17 June 2014 (the vesting date), the Performance Shares awarded in 2011 under the
Performance Share Plan to the members of the Management Board and the international
management team of DOCDATA, will be unconditionally granted in DOCDATA N.V.
shares. The performance period for these Performance Shares comprise the financial
years 2011, 2012 and 2013. This period has already ended and the independent external
remuneration advisor of the Supervisory Board, determined on behalf of the Company that
DOCDATA N.V. actually realised an annual average TSR (Total Shareholder Return) of
26.64% for this performance period. According to the Performance Share Plan, this TSR
results in an unconditional grant (vesting) of 127.11% of the number of Performance
Shares conditionally awarded in 2011. The number of own shares DOCDATA N.V.
required for this unconditional grant (49,269 shares) will be purchased by the Company in
the period from today until 17 June 2014, since the Company currently does not own any
shares DOCDATA N.V. anymore.
Accounting principles
The consolidated financial statements of DOCDATA N.V. are prepared in accordance with
the International Financial Reporting Standards as adopted by the European Union
(hereafter IFRS). For an overview of the significant accounting policies under IFRS,
please refer to the 2012 Annual Report that is available at the Company and can also be
downloaded from the Company’s corporate website,
www.docdatanv.com
. The 2013
For a detailed review of the 2013 year-end results, please refer to the attached enclosure
‘Financial Information for the year ended 31 December 2013’ with Appendix.
Meeting for financial press and analysts
This morning, 20 February 2014, management of DOCDATA N.V. will discuss the 2013
year-end results in a meeting for which both financial press and analysts have been
invited, to be held at 10.30AM Continental Time in the Mercurius room of the Financieel
Nieuwscentrum Beursplein 5 of NYSE Euronext Amsterdam (Beursplein 5, 1012 JW
Amsterdam, telephone +31-20-5505505). After this meeting, the presentation shown to
the financial press and analysts will be made available for downloading from the
Company’s corporate website,
www.docdatanv.com
.
Important dates
1 April 2014
Publication of 2013 Annual Report (online)
15 April 2014
Record date (voting rights)
23 April 2014
Interim notice first quarter 2014
13 May 2014
Annual General Meeting of Shareholders in Waalwijk
14 May 2014
Cum-date
15 May 2014
Ex date
19 May 2014
Record date (dividend rights)
23 May 2014
Dividend payment date
17 July 2014
Publication of 2014 half-year results
15 October 2014
Interim notice third quarter 2014
---
The listed DOCDATA N.V. exists of two lines of business:
Docdata (www.docdata.com) is a European market leader with a strong basis in The Netherlands, Germany and the United Kingdom. Docdata offers a complete e-commerce service portfolio to clients, enabling them to be successful on the internet.
IAI (www.iai-industrial-systems.com) is a high tech engineering company specialised in developing and building systems for very accurate and high speed processing of all kinds of products and materials. IAI delivers clients globally in the following sectors: securing and personalising of security documents, processing of solar cells and modules and processing of other materials and products.
Waalwijk, The Netherlands, 20 February 2014
Further information: DOCDATA N.V., M.F.P.M. Alting von Geusau, CEO, Tel. +31 416 631 100 Corporate website: www.docdatanv.com
The financial information is prepared in accordance with International Financial Reporting Standards as adopted by the European Union (hereafter “IFRS”) and its interpretations adopted by the International Accounting Standards Board (IASB).
Results for Docdata
2013 2012
(in thousands, except for percentage figures) € % € %
Revenue 149,141 100.0 142,835 100.0
Gross profit (margin as a % of revenue) 31,570 21.2 30,637 21.4
Selling and administrative expenses (19,505) (13.1) (18,843) (13.2)
Other operating income and expenses (2,413) (1.6) (975) (0.6)
EBITDA 18,005 12.1 16,928 11.9
Operating profit before financing result (EBIT) 9,652 6.5 10,819 7.6
Revenue of Docdata increased with € 6.3 million (+4.4%) to € 149.1 million. The major part of this growth was realised in the Netherlands due to autonomous growth of existing clients. As expected, revenue in Germany decreased mainly due to less volumes processed for our biggest client. The number of transactions increased with 8.5% to almost 52 million in 2013 (2012: almost 48 million). Revenue in the fourth quarter decreased as expected due to lower volumes processed for our biggest client in Germany.
The gross profit increased with € 0.9 million (+3%), which is a mix of the revenue growth and efficiency results in 2013. The gross profit margin is in line with last year and is the result of a higher gross profit margin in Germany and a lower gross profit margin in the UK. In Germany the gross profit margin increased resulting from a negative impact due to lower prices and higher costs and a positive impact as there were no exceptional (non-recurring) costs as in 2012. In the UK the gross profit margin decreased significantly due to issues with a large client in the UK.
The operating profit decreased with € 1.2 million (-/-10.8%) mainly as the result of the increased gross profit and higher selling and administrative expenses, as well as higher other operating expenses. The selling and administrative expenses have followed the growth of the organisation. Other operating income and expenses increased mainly due to an impairment loss of € 3 million in 2013 for the goodwill and customer contracts which has been recognised for the UK activities acquired with Braywood Holdings Ltd in 2006. In 2013 restructuring costs have been recognised for an amount of € 0.2 million.
International expansion
As international expansion is a key focus for Docdata, the Group has started on 5 June 2013 activities in Poland through Docdata Fulfilment sp. z o.o. This Group company is a private limited liability company incorporated to Polish law and is located in Swiebodzin in Poland, where a warehouse has been rented of approximately 2,500 square meters. A three-year contract has been
continued the business of a former partner. The current volumes are relatively low, but we are fully focusing on the Italian market to win new business.
Results for IAI
2013 2012
(in thousands, except for percentage figures) € % € %
Revenue 17,780 100.0 10,001 100.0
Gross profit (margin as a % of revenue) 5,443 30.6 2,916 29.2
Selling and administrative expenses (3,810) (21.4) (2,809) (28.1)
Other operating income and expenses (138) (0.8) 46 0.4
EBITDA 2,255 12.7 513 5.1
Operating profit before financing result (EBIT) 1,495 8.4 153 1.5
Revenue of IAI increased with € 7.8 million (+78%) due to more system deliveries during 2013 compared to 2012, which year had a very low revenue level.
The gross profit increased with € 2.5 million (+87%) due to higher sales. The gross profit margin increased due to higher margins realised on delivered systems. The operating profit increased with € 1.3 million as a combined effect of higher gross profit and higher selling and administrative expenses, mainly resulting from the growing organisation of IAI to accommodate a higher capacity.
1. Consolidated statement of financial position
Financial position before appropriation of profit.
Reference 31 December 2013 31 December 2012 (in thousands) € € Assets
Property, plant and equipment 6.6 22,016 19,599
Intangible assets 6.7 5,870 8,948
Investments in associates - -
Other investments 11 21
Trade and other receivables 360 -
Deferred tax assets 796 531
Total non-current assets 29,053 29,099
Inventories 6.8 7,135 6,240
Income tax receivables 2,038 729
Trade and other receivables 29,118 25,653
Cash and cash equivalents 6.9 (Note) 20,518 20,655
Assets classified as held for sale 738 738
Total current assets 59,547 54,015
Total assets 88,600 83,114
Equity
Share capital 700 700
Share premium 16,854 16,854
Translation reserves (523) (514)
Reserve for own shares 441 (477)
Retained earnings (from prior years) 16,626 13,461
Unappropriated profits (Profit for the period) 8,665 7,507
Total equity attributable to equity holders of the parent 42,763 37,531
Non-controlling interest - -
Total equity 6.11 42,763 37,531
Liabilities
Interest-bearing loans and other borrowings - -
Deferred tax liabilities 980 1,210
Other non-current liabilities 418 268
Total non-current liabilities 1,398 1,478
Bank overdrafts - -
Interest-bearing loans and other borrowings - -
Income tax payable 1,839 1,062
Trade and other payables 40,725 41,546
Provisions 1,875 1,497
Total current liabilities 44,439 44,105
Total liabilities 45,837 45,583
Total equity and liabilities 88,600 83,114
Note: Cash and cash equivalents per 31 December 2013 includes restricted cash of Stichting foundation docdata payments in the amount of € 13.8 million, see also the disclosure notes 6.5, 6.9 and 6.10 (31 December 2012: € 11.9 million).
2. Consolidated Income Statement
Reference 2013 2012
(in thousands, except for earnings per share) € % € %
Revenue 166,921 100.0 152,836 100.0
Cost of sales (129,908) (77.8) (119,283) (78.0)
Gross profit 37,013 22.2 33,553 22.0
Other operating income 6.12 994 0.6 1,025 0.7
Selling expenses (6,683) (4.0) (5,729) (3.8)
Administrative expenses (16,632) (10.0) (15,923) (10.4)
Other operating expenses 6.12 (3,545) (2.1) (1,954) (1.3)
Operating profit before financing result 11,147 6.7 10,972 7.2
Financial income 114 0.1 234 0.1
Financial expenses (231) (0.2) (228) (0.1)
Net financing income / (expenses) 6.13 (117) (0.1) 6 -
Share of profits / (losses) of associates - - (9) -
Profit before income tax 11,030 6.6 10,969 7.2
Income tax expense 6.14 (2,365) (1.4) (3,374) (2.2)
Profit for the period 8,665 5.2 7,595 5.0
Attributable to:
Equity holders of the parent 8,665 5.2 7,507 4.9
Non-controlling interest - - 88 0.1
Profit for the period 8,665 5.2 7,595 5.0
Earnings per share
Basic earnings per share 1.24 1.09
3. Consolidated Statement of Cash Flows
Reference 2013 2012
(in thousands) € €
Cash flows from operating activities
Profit for the period 8,665 7,595
Adjustments for:
Depreciation and amortisation (including goodwill impairments) 9,113 6,469 Costs share options, performance shares anddelivered shares 246 270
Loss / (Gain) on sale of property, plant and equipment - (271)
Financial income (114) (234)
Financial expenses 231 228
Share of losses of associates - 9
Income tax expense 2,365 3,374
Cash flows from operating activities before changes in
working capital and provisions 20,506 17,440
(Increase) / decrease in trade and other receivables (3,695) (4,522)
(Increase) / decrease in inventories (895) (1,804)
Increase / (decrease) in trade and other payables (3,062) 7,382
Increase / (decrease) in provisions and other non-current
liabilities 378
1,227
Cash generated from the operations 13,232 19,723
Interest paid (132) (240)
Interest received 114 204
Income taxes paid (4,233) (3,549)
Income taxes received 879 76
Net cash from operating activities 6.11 9,860 16,214
Cash flows from investing activities
Acquisition of property, plant and equipment 6.6 (6,895) (10,307)
Acquisition of intangible assets 6.7 (1,357) (1,412)
Loans provided to associates and other investments (110) -
Proceeds from sale of property, plant and equipment 34 443
Proceeds from sale of associates and other investments 10 74
Acquisition of subsidiaries - 310
Proceeds from sale of replication activities - 375
Net cash from investing activities 6.11 (8,318) (10,517)
Cash flows from financing activities
Dividends paid (3,850) (3,457)
Proceeds from exercise of share options 425 275
Own shares bought (245) (124)
Acquisition of non-controlling interests - (1,250)
Repayment of interest-bearing loans and other borrowings - (100)
Net cash from financing activities 6.11 (3,670) (4,656)
Net increase / (decrease) in non-restricted cash and cash
equivalents (2,128) 1,041
Cash and cash equivalents at the beginning of the period 8,801 7,781
Restricted cash and cash equivalents (Note) 13,814 11,854
Effect of exchange rate fluctuations on cash held 31 (21)
Cash and cash equivalents at the end of the period (Note) 20,518 20,655 Note: reference to disclosure notes 6.5, 6.9 and 6.10 for Stichting foundation docdata payments
4. Consolidated Statement of changes in Shareholders’ Equity
Note 1: Reserves in the Consolidated Statement of Shareholders’ Equity consists of the balances for Translation reserves and Reserve for own shares.
Note 2: Retained earnings in the Consolidated Statement of Shareholders’ Equity consists of the balances for Retained earnings (from prior years) and Unappropriated profits, equal to the Profit for the period for both years ended 31 December 2012 respectively 31 December 2013. Share capital Share premium Reserves Retained earnings Total equity attributable to equity holders of the parent Non-controlling interest Total equity (in thousands) € € € € € € € (Note 1) (Note 2) 2012 Balance at 1 January 2012 700 16,854 (1,476) 17,740 33,818 340 34,158 Dividend distribution - - - (3,457) (3,457) - (3,457)
Exercised share options - - 275 - 275 - 275
Delivered shares for remuneration - - 97 - 97 - 97
Own shares bought - - (124) - (124) - (124)
Costs share options and
Performance shares - - 173
- 173 - 173
Unrealised exchange rate results - - 64 - 64 - 64
Acquisition of non-controlling
interest without a change in control - - - (822) (822) (428) (1,250)
Profit for the period - - - 7,507 7,507 88 7,595
Balance at 31 December 2012 700 16,854 (991) 20,968 37,531 - 37,531
2013
Balance at 1 January 2013 700 16,854 (991) 20,968 37,531 - 37,531
Dividend distribution - - - (3,850) (3,850) - (3,850)
Exercised share options - - 425 - 425 - 425
Delivered shares for remuneration - - 32 - 32 - 32
Own shares bought - - (245) - (245) - (245)
Costs share options and
Performance shares - - 214
- 214 - 214
Realised reserve for own shares - - 492 (492) - - -
Unrealised exchange rate results - - (9) - (9) - (9)
Profit for the period - - - 8,665 8,665 - 8,665
5. Consolidated Statement of recognised Income and Expense
2013 2012
(in thousands) € €
Foreign exchange translation differences, net of tax (9) 64
Income / (Expense) recognised directly in equity (9) 64
Profit for the period 8,665 7,595
Total recognised income and expense for the period 8,656 7,659
Attributable to:
Equity holders of the parent 8,656 7,571
Non-controlling interest - 88
Total recognised income and expense for the period 8,656 7,659
6. Notes to the Consolidated Financial Statements
6.1 Reporting entity
DOCDATA N.V. (referred to as “DOCDATA” or the “Company”) is a company domiciled in Waalwijk, the Netherlands. The consolidated financial statements of DOCDATA N.V. as at and for the year ended 31 December 2013 comprise DOCDATA N.V. and its subsidiaries (together referred to as the “Group”) and the Group’s interest in associates and jointly controlled entities. The consolidated financial statements of the Group as at and for the year ended 31 December 2013 will be published on 1 April 2014. The consolidated financial statements of the Group as at and for the year ended 31 December 2012 are available upon request from the Company’s registered office at Energieweg 2, 5145 NW in Waalwijk, the Netherlands, or at the Company’s corporate website, www.docdatanv.com.
6.2 Statement of compliance
These consolidated financial statements do not include all of the information required for full annual financial statements, and should therefore be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2012.
6.3 Significant accounting policies
The consolidated financial statements of the Group are prepared in accordance with the International Financial Reporting Standards as adopted by the European Union (“IFRS”). The accounting policies applied by the Group in these consolidated financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2012. For a summary of the significant accounting policies under IFRS, please refer to the Group’s Annual Report for the year ended 31 December 2012.
6.4 Management representations
In the opinion of the management, these consolidated financial statements include all adjustments necessary for a fair presentation of the financial position, operating results and cash flows of all reporting periods herein.
In the consolidated financial statements for the year ended 31 December 2013, non-recurring adjustments have been recorded for the following topics:
full impairment of the goodwill paid in 2006 for the acquisition of Braywood Holdings Ltd. in the UK (€ 2.9 million);
accelerated amortisation (impairment) of the remaining book value of the customer contracts recognised as part of the purchase price allocation at the acquisition of Braywood Holdings Ltd. in the UK (€ 0.1 million);
restructuring provisions (€ 0.2 million).
Non-recurring adjustments were recorded in the consolidated financial statements for the year ended 31 December 2012 for the following topics:
full impairment of the remaining book value (€ 0.1 million) of the goodwill paid for the acquisition of Hitura Ltd. in the UK (docdata commerce Ltd.);
full impairment of the goodwill paid (€ 1.0 million) for the acquisition of ICenT B.V. (docdata commerce B.V.);
provisions and other liabilities for contract termination costs and dilapidations for rented warehouses in Germany (in total an effect of € 1.6 million);
reporting as ‘assets classified as held for sale’ of the property (land, building and equipment) owned by Docdata e-Services B.V. in Tilburg (the Netherlands), following the sale of the last Docdata media replication business activities per 1 January 2012. These assets have not been sold yet during 2013 and remain on the balance sheet per 31 December 2013.
6.5 Consolidation
In the consolidated financial statements for the year ended 31 December 2013, the following treatment has been applied for the following incorporations and amendments in the consolidation structure of the Group:
Docdata Italy Srl.: on 8 July 2013, the Group has incorporated through its intermediate holding company DOCdata International B.V. a limited liability company in Italy and named this new wholly-owned subsidiary Docdata Italy Srl. As of the incorporation date, the activities and results of this legal entity have been included in the DOCDATA consolidation;
Docdata Fulfilment sp. z o.o.: on 5 June 2013, the Group has acquired through its intermediate holding company DOCdata International B.V. a limited liability (shelf) company in Poland and renamed this new wholly-owned subsidiary Docdata Fulfilment sp. z o.o. As of the acquisition date, the activities and results of this legal entity have been included in the DOCDATA consolidation;
Docdata Technology B.V.: on 15 April 2013, the Group has incorporated through its group company Docdata Technology Beheer B.V. a limited liability company in the Netherlands and named this new wholly-owned subsidiary Docdata Technology B.V. As of the incorporation date, the activities and results of this legal entity have been included in the DOCDATA consolidation;
Docdata Technology Beheer B.V.: on 15 April 2013, the articles of association of the wholly-owned Dutch subsidiary 4D upgrade B.V. were amended and the legal name of the company was changed into Docdata Technology Beheer B.V..
6.6 Property, plant and equipment
31 December 2013 31 December 2012 (in thousands) € €Land and buildings 3,080 2,401
Machinery and equipment 16,150 14,040
Office equipment and other 2,665 2,940
21,895 19,381
Under construction 121 218
Total 22,016 19,599
The book value of property, plant and equipment has increased with € 2.4 million in 2013, mainly as a combined result of capital expenditure for € 7.2 million and depreciation charges for € 4.7 million. Capital expenditure in 2013 relates for € 3.9 million to the investment by Docdata Fulfilment for the further expansion of the logistic centre in Waalwijk, the Netherlands (2012: € 6.0 million). Other capital expenditure of € 3.3 million mainly consists of investments for the expansion of fulfilment warehouses in Germany, predominantly in the Berlin region (€ 2.7 million) and investments in Poland (€ 0.2 million) and in the United Kingdom (€ 0.2 million), as well as the investments by IAI (€ 0.2 million). At 31 December 2013, € 0.1 million additional capital expenditure was committed in addition to the amount accounted for ‘under construction’.
6.7 Intangible assets
31 December 2013 31 December 2012 (in thousands) € € Goodwill 2,444 5,381Software (IT platforms) 2,010 1,912
Development costs 1,416 1,421
Customer contracts - 234
Total 5,870 8,948
The book value for intangible assets has decreased with € 3.1 million in 2013, due to the following: capital expenditure for investments by Docdata Payments in the further development of their
payment platform (€ 0.5 million), investments by IAI in costs for the development of second generation systems (e.g. BookMaster One®) for the security market (€ 0.5 million) and an investment in a software planning tool by Docdata Fulfilment (€ 0.3 million) (€ 1.4 million in total; rounded);
amortisation charges for software (IT platforms), customer contracts and development costs (€ 1.4 million in total);
full impairment of the goodwill paid in 2006 for the acquisition of Braywood Holdings Ltd. in the UK (€ 2.9 million);
accelerated amortisation (impairment) of the remaining book value of the customer contracts recognised as part of the purchase price allocation at the acquisition of Braywood Holdings Ltd. in the UK (€ 0.1 million).
6.8 Inventories
31 December 2013 31 December 2012 (in thousands) € € Finished goods 1,903 2,194 Work in progress 4,063 2,857Raw and auxiliary materials 1,169 1,189
Total 7,135 6,240
The book value of inventories increased € 0.9 million in 2013, which is the combined effect of increased work in progress at IAI (€ 1.2 million) and a lower finished goods inventory level (€ 0.3 million). The lower finished goods inventory level is predominantly caused by a lower stock of corporate clothing by Docdata Fashion Services GmbH. The Company only bears a limited inventory risk on this stock, as the clients have accepted their obligation to take over this inventory should they terminate their contract with Docdata Fashion Services GmbH.
IAI’s order book developed in 2013 from € 6.7 million at 31 December 2012 to € 10.2 million at 31 December 2013 resulting from systems’ deliveries in 2013 with revenue of € 17.8 million and new orders booked with a total sales value of € 21.3 million. The increased order book is also reflected in the book value per 31 December 2013 of work in progress, as the largest part of the orders included in the order book value is scheduled for delivery in 2014. Production has already started in 2013 for some of these orders.
6.9 Cash and cash equivalents
31 December 2013
31 December 2012
(in thousands) € €
Non-restricted cash and cash equivalents 6,704 8,801
Restricted cash and cash equivalents 13,814 11,854
Total 20,518 20,655
Restricted cash and cash equivalents only consists of the restricted cash and cash equivalents recorded in the balance sheet of Stichting foundation docdata payments, representing cash received from customers on behalf of the Docdata Payments merchants in the bank accounts of Stichting foundation docdata payments which shall have to be paid (net of charged Docdata Payments fees) to the merchants without any disposition of this cash balance to the Group.
6.10 Stichting foundation docdata payments
The balance sheet of Stichting foundation docdata payments reads as follows: 31 December 2013 31 December 2012 (in thousands) € €
Trade and other receivables 183 163
Restricted cash and cash equivalents 13,814 11,854
Total current assets 13,997 12,017
Total assets 13,997 12,017
Other non-current liabilities 418 268
Total non-current liabilities 418 268
Trade and other payables 13,579 11,749
Total current liabilities 13,579 11,749
Total liabilities 13,997 12,017
Of these items in the balance sheet of Stichting foundation docdata payments, the following items have certain restrictions which should be honoured by the Group:
restricted cash and cash equivalents is fully restricted cash, as the balance concerns cash received from customers on behalf of the Docdata Payments merchants which shall have to be paid to the merchants, net of charged Docdata Payments fees;
other non-current liabilities concerns advance payments received from merchants in depository accounts;
trade and other payables reflect the payment obligations towards the merchants in view of the settlements for realised transactions for which money has already been collected from consumers that shall have to be paid to the merchants.
6.11 Liquidity and capital resources
The General Annual Meeting of Shareholders held on 14 May 2013 approved the proposal to distribute a dividend of € 0.55 per ordinary share outstanding, which had a decreasing impact of € 3.9 million on retained earnings within the equity of the Company in 2013. This dividend was paid by the Company on 24 May 2013 from the net cash available.
In February 2013, all remaining 66,000 share options outstanding per 31 December 2012 were exercised from the 2008 and 2009 series at an average exercise price of € 6.44 per share, after which the 2006 Personnel Options Plan came to an end. The underlying shares were delivered by the Company from the shares in stock. The proceeds of € 0.4 million have been credited to equity (‘Reserve for own shares’). Per 31 December 2013, the Company has no own shares in stock, which is also the situation per today, 20 February 2014. The debit balance of the Reserve for own shares, created at the purchase of the own shares by the Company in previous years, was realised in the first half-year 2013 and the related debit reserve amount of € 492 thousand was released against retained earnings.
The Performance Shares granted conditionally in 2010 vested at 14 May 2013 with a vesting percentage of 91.62%, which was based on the average annual Total Shareholder Return growth realised over the three-year performance period covering the years 2010, 2011 and 2012. For a total number of 18,284 outstanding Performance Shares the Company has delivered 16,758 own shares, which were bought for an amount of € 213 thousand (average price: € 12.68 per share) through a broker on the Euronext Amsterdam stock market on the day following the publication of the 2012 results (i.e. purchase date 22 February 2013).
2013, which have been granted conditionally in 2011 (38,755 Performance Shares; vesting date: 17 June 2014), in 2012 (63,387 Performance Shares; vesting date: 1 June 2015) and in 2013 (41,015 Performance Shares; vesting date: 16 May 2016). The own shares required at vesting of each of these Performance Share Plans will be bought by the Company, if and when needed in the future, through an external broker at the Euronext Amsterdam stock market. The ‘Reserve for own shares’ balance in equity per 31 December 2013 amounts to € 441 thousand (credit), representing the total of all costs recorded against income for the Performance Shares granted in 2011, 2012 and 2013. Each year when Performance Shares will vest, the balance will be partially released to retained earnings for the corresponding amount related to those specific Performance Shares. As the Company holds no own shares anymore per date of 14 May 2013, following the above mentioned exercise of options and vesting of Performance Shares, the Company has disclosed per that same date its holdings in DOCDATA N.V. at 0%, in accordance with Chapter 5.2 of the Financial Supervision Act (‘Wet op het financieel toezicht’).
In 2013, the Group realised net cash from operating activities of € 9.9 million (2012: € 16.2 million). Furthermore, € 0.4 million in cash was received from the exercise of all the remaining outstanding share options. In total, this resulted in Group funding (cash-in) of € 10.3 million, while the Group did spent (cash-out) a total of € 12.4 million, containing the payment of the 2012 dividend (€ 3.9 million), capital expenditure in property, plant and equipment (€ 7.2 million of which € 6.9 million was paid in 2013, mainly for warehousing equipment in Waalwijk and Groβbeeren) and intangibles (€ 1.4 million, mainly for IT development costs for the payments platform, development costs for second generation systems of IAI and a software planning tool of Docdata Fulfilment), the purchase of own shares necessary for the vesting of the Performance Share Plan 2010 (€ 0.2 million) and the distribution of a loan to associates and other investments (€ 0.1 million). As a result, the net cash position of the Group has decreased with € 2.1 million to a net cash surplus position of € 6.7 million per 31 December 2013 (31 December 2012: net cash surplus position of € 8.8 million), excluding the restricted cash position of € 13.8 million per 31 December 2013 of Stichting foundation docdata payments (31 December 2012: € 11.9 million).
6.12 Other operating income and expenses
2013 2012
(in thousands, except for percentage figures) € % € %
Other operating income 994 0.6 1,025 0.7
Other operating expenses (3,545) (2.1) (1,954) (1.3)
Net other operating expenses (2,551) (1.5) (929) (0.6)
Other operating income in 2013, as well as in 2012, predominantly consists of releases of accruals and provisions carried in the balance sheet at the end of the previous year.
Other operating expenses predominantly consist of impairment charges (2013: € 3.0 million, including € 2.9 million goodwill impairment and € 0.1 million accelerated amortisation of customer contracts, both for the UK activities acquired with Braywood Holdings Ltd.; 2012: € 1.4 million, including € 0.3 million additional depreciation German assets and € 1.1 million goodwill impairment of the Docdata Commerce activities acquired with ICenT B.V. in the Netherlands and Hitura Ltd. in the UK), restructuring expenses (2013: € 0.4 million; 2012: € 0.5 million) and expenses from prior years (2013: € 0.1 million; 2012: € 0.1 million).
6.14 Income tax expense
DOCDATA’s effective tax rate in 2013 was 21.4% with an income tax expense of € 2.4 million on a profit before income tax of € 11.0 million. In 2012, the profit before income tax (excluding share of losses of associates) amounted to € 11.0 million and the income tax expense amounted to € 3.4 million (effective tax rate: 30.7%). The decreased effective tax rate predominantly reflects the impact of an income tax gain realised in the Netherlands in 2013, as mentioned below.
The income tax expense of € 2.4 million in 2013 is the result of the following tax treatments of the results per country, combined with an effect of some entries for the valuation of deferred tax assets per 31 December 2013 in relation to the realisation of net operating losses in the Netherlands and Germany, and some differences between commercial and fiscal treatment of certain assets and profit and loss items:
In the Netherlands, income taxes are recorded at a corporate income tax rate of 25.0% on the taxable income for the Dutch fiscal entity as well as for the Dutch subsidiary Docdata Payments that is not part of this fiscal entity (2012: 25.0%). In 2013, an income tax gain of € 1.3 million has been recorded due to the realisation of the liquidation loss (€ 5.2 million) from the former French Docdata replication activities that can be claimed as the liquidation process (started in 2007) was completed by the competent Court in France per 16 September 2013.
In the United Kingdom, income taxes are recorded against a blended corporate income tax rate of 23.25% (2012: 24.5%). No corporate income taxes have been recorded on the UK operating loss in 2013 and the goodwill impairment charge (€ 2.9 million) is not tax deductible for the Group.
In Germany, income taxes are recorded at a corporate income tax rate of in general between 26% and around 32% on taxable income for the German entities when and where applicable, depending on the actual region in Germany of their legal seat (e.g. Berlin, Munich or Münster region). In 2013, the valuation allowance for deferred tax assets on net operating losses from prior years has been released due to improved profitability of the Münster operations, which has resulted in a tax profit of € 0.4 million.
In Poland, income taxes are recorded against a corporate income tax rate of 19.0%. In Italy, income taxes are recorded against a corporate income tax rate of 27.5%.
6.15 Segmented Consolidated Income Statements
6.15.1
Docdata
2013 2012 (in thousands) € % € % Revenue 149,141 100.0 142,835 100.0 Cost of sales (117,571) (78.8) (112,198) (78.6) Gross profit 31,570 21.2 30,637 21.4Other operating income 949 0.6 958 0.7
Selling expenses (5,566) (3.7) (4,821) (3.4)
Administrative expenses (13,939) (9.3) (14,022) (9.8)
Other operating expenses (3,362) (2.3) (1,933) (1.3)
Operating profit before financing result 9,652 6.5 10,819 7.6
Financial income 83 0.1 198 0.1
Financial expenses (201) (0.2) (192) (0.1)
Net financing expenses (118) (0.1) 6 -
Share of profits of associates - - - -
Profit before income tax 9,534 6.4 10,825 7.6
Income tax expense (2,121) (1.4) (3,345) (2.4)
Profit for the period 7,413 5.0 7,480 5.2
Attributable to:
Equity holders of the parent 7,413 5.0 7,392 5.2
Non-controlling interest - - 88 -
6.15.2
IAI
2013 2012 (in thousands) € % € % Revenue 17,780 100.0 10,001 100.0 Cost of sales (12,337) (69.4) (7,085) (70.8) Gross profit 5,443 30.6 2,916 29.2Other operating income 45 0.2 67 0.6
Selling expenses (1,117) (6.3) (908) (9.1)
Administrative expenses (2,693) (15.1) (1,901) (19.0)
Other operating expenses (183) (1.0) (21) (0.2)
Operating profit before financing result 1,495 8.4 153 1.5
Financial income 31 0.2 36 0.4
Financial expenses (30) (0.2) (36) (0.4)
Net financing expenses 1 - - -
Share of profits of associates - - (9) (0.1)
Profit before income tax 1,496 8.4 144 1.4
Income tax expense (244) (1.4) (29) (0.3)
Profit for the period 1,252 7.0 115 1.1
Attributable to:
Equity holders of the parent 1,252 7.0 115 1.1
Non-controlling interest - - - -
to our loyal clients
and employees.”
We are a diverse company with two highly differentiated business units. This makes us unique. On the one hand we are involved with thousands upon thousands of consumer orders that are ordered online daily through our clients, and on the other hand we supply a relatively limited number of high-quality production systems to clients located all over the world, from Asia to South America. Each of our companies has its own specific dy-namics, but ultimately it is the people who work here who make it possible every day. People on whom we can build and on whom we can rely day in day out: people who assume mutual responsibility at every level in our or-ganization.
When I observe the effort and mitment of the employees in our
com-panies and our clients convey their deep satisfaction with our services and machines, I am extremely proud. There is an unparalleled drive to quickly resolve deficiencies and to continually improve our processes. That drive is vital, because a stand-still equals regression, certainly in the markets in which we are active. In 2014, our e-commerce company celebrates its 15th anniversary. We can be justifiably proud of that, considering how young the e-commerce market is. Our company IAI Industrial Systems has been operating for 22 years and during this period has carved out a top position in a worldwide market of personalization systems. Our clients have proven to be extremely loyal, which has been largely prompted
continually deliver. The year 2014 will also bring challenges. We are already aware of some and others will undoubtedly show up on our path.
Passion, commitment and striving towards the finest quality are the ingredients that enable our company to continue improving and excelling. During the coming years we will be investing a great deal of time in imple-menting our new Vision 2020: Smart Growth. Our success, but also the success of our clients, will depend on the degree to which we can mutually develop smart solutions in order to stay ahead of the competition. To achieve this, it is crucial that we utilise all our combined knowledge at all levels in the chain.
We generated a combined record turnover of € 167 million and a net profit of € 8.7 million for 2013. We invested more than € 8 million in our companies and many new employees were hired. I am proud of what we have achieved together. This would never have been accomplished without the enormous efforts of our employees and the authentic partnerships with our clients and suppliers.
Thank you all!
Michiel Alting von Geusau Chief Executive Officer of DOCDATA N.V.
we worked incredibly hard on all fronts. Not only did our
client base expand further during the year, we continued to
drive the business forward and are nowevolving into a large
international organization. As a result, unfortunately I no
longer personally know all employees and clients.
DOCDATA N.V. thanks
to our loyal clients
and employees.”
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20 Media replication 40 60 80 100 120 140 160 180 200 Revenue development 2003-2013 -20% -10% 0% 10% 20% 30%Vision 2020
Smart
Growth
Smart
in e-commerce
operations
IAI
Smart
with laser
technology
Vision 2020
Smart
Growth
Smart
in e-commerce
operations
IAI
Smart
with laser
technology
We provide services that are key to being successful in e-commerce. Our principal activities are B2C fulfilment, returns logistics, online payments, international carrier management and related services that provide added value.
Our clients include General resellers such as bol.com and Zalando, om-nichannel players such as Bijenkorf and V&D, brands such as Brax and Livera, deal resellers such as Ibood and 1DayFly and specialized resellers
company with a focus on offering e-commerce solutions
to clients who sell their products or services online. We are
active in the Netherlands, Belgium, Germany, the United
Kingdom, Poland, Switzerland, Italy, Spain and France.
such as Wine in Black and Gekruid. The online proposition is crucial for all these players. We play a major role in their success by supplying smart solutions across the entire chain. We are seen as a flexible partner with both integrated and modular e-commerce solutions. We are pioneering and are unparalleled in our responsiveness. We aim to be seen as a knowledge leader in the European e-commerce market.
We are successful because we have employees who excel at what they do, are hands-on and have a no-nonsense attitude. They are supported by specialised IT systems and intel-ligent processes that guarantee quality, scalability and flexibility. This enables our clients to be successful online. Docdata achieved a turnover of 149 million euros and employed an average of 2000 employees, split between permanent and temporary personnel.
In the US pure players
have 43% of the online
market and the top
500 webshops more
than 95%.
The European e-commerce
market
The total European e-commerce market is estimated to be worth € 312 billion in products and services. Growth in 2013 was similar to that of 2012. The strong growth figures for Central, Southern and Eastern Europe are striking in comparison to Western and Northern Europe. They seem to be making up the gap at a fast pace. Europe has around 250 million online shoppers. They spend an average of € 1,243 a year.
The business models in
e-commerce
In the e-commerce market we have identified five different business models. We offer specific solutions for each model that contribute to the success of the proposition for the business model concerned.
General Reseller
A General Reseller provides a full range of products in multiple product categories. Products are sold directly by the Reseller or via partners using the marketplace of the Reseller. An excellent search function is a prere-quisite to operating successfully as a General Reseller. Some have a clear focus on hard-line products. In addition to product range, price and service are crucial to be successful. General Resellers are national and international ‘pure players’ that make use of their highly user-friendly website, purchasing power, scalability and fast time to market. This top segment only has space for a limited number of players owing to the high investment required for providing a wide product range. The greatest example in this segment is, of course, Amazon and bol.com in the Benelux. Other examples are ASOS and Zalando.
Omnichannel reseller
Omnichannel resellers offer their pro-ducts and services via both offline and online sales chennels. It is vital that consumers have a similar experience of service provision across all channels (One View of Customer) and that a single stock display exists (One View of Stock). Strong interaction between offline and online creates a seamless customer experience. Nevertheless, an Omnichannel reseller must take high operational and IT costs into account. Only a few players are capable of covering these costs. This segment offers space primarily for local players. The product range will always be smaller than that of the General reseller and requires greater focus on soft-line products. Examples include V&D and Bijenkorf. A percentage of omnichannel players use a fully integrated model in which private label products, sourced by the Omnichannel Reseller are sold. This is particularly widespread in the fashion market. Examples include brands such as Esprit and C&A. Brands
Brands bind consumers by creating emotional ties and brand perception. Brands will always want to offer their products through ‘multichannel’ selling. This involves making their products available through various online and offline channels. The largest per-centage of turnover will therefore be generated through third parties. Their own online channel usually has a limited scope. However, a clear trend does exist for centralizing stock in Europe and also supplying B2C shipments from the same inventory. Examples include Brax and Puma.
Deals reseller
Deals resellers attract customers primarily on the basis of special offers. The proposition for these models is based on price and impulse. Growth will result mainly as a result of interna-tionalization, which is not an easy task since a large number of similar models are already active. Examples of Deals resellers include Groupon and Bood. Specialized reseller
In addition to models described above, there will always be space in the e-commerce market for smart, passionate entrepreneurs who dis-tinguish themselves from the major players by offering a unique propo-sition. This is made possible due to specialized knowledge or expertise regarding a product, service or a unique combination of the two. The biggest challenge for Specialist resellers is not to enter the compe-tition with the other models but to remain focussed on their own niche or multiple niches. Internationalization is possible but challenging, due to the need for acquiring a unique position in each local market, which requires a great deal of local knowledge. This makes it vital to analyse whether the main unique selling point is know-ledge of the product or knowknow-ledge of local customs, combined with the target group of customers. Good examples of successful specialized resellers include Nespresso, Wine in Black and Gekruid.
E-commerce solutions
Services that are necessary in order to become successful e-commerce com-panies:
Online marketing. Webshop management. Online payments. B2C fulfilment.
Carrier management & transport. Customer service.
Returns logistics & refunds. Value added services.
Software development and inte-gration.
Depending on the business model, there will be a preference for managing certain services internally rather than externally (outsourcing). The exact structure of costs depends on the proposition that the webshop offers. The average order value and type of
Product categories
As noted above, we see a major market difference between hard-line and soft-line products.
Hard-line products:
Easily comparable, uniform product information is available.
Pricing often makes the difference. Examples include media and
electronics products.
Specific products may be available via many sales channels.
Low returns percentages. Market is dominated by Amazon. Soft-line products:
More difficult to compare. Emotional ties due to style and
taste.
Examples include clothing and shoes.
Products have a very short life cycle and are season driven. Value of product declines quickly
and is often seen as a consumable. High returns percentages.
A focus on one of these product categories is increasingly part of a webshop category. A focus on soft-line products enables the webshop to dis-tinguish itself from the competition. A focus on hard-line products often results in fierce competition on price and availability. The fight will ultimately be won by the General resellers with deep pockets and buying power.
Difficult to compare
Examples are fashion and furniture
Short lifecycle/ seasonality/ fashion driven Require a strong emotional
involvement (style, taste, etc)
Specific article is available in a few channels but many channels offer soft-line products
Perceived as consumables/ value of the product diminishes rapidly
Price is the main differentiator, based on specifications
Specific article is available in many different channels but Amazon will be the main
Soft-line products
Hard-line products
Easy to compare/ Product information is readily available
Examples are media and electronics
0% 5% 10% 15% 20% 25% 5% B2C Fulfilment Reverse logistics Online payments Customer service Online marketing & advertisement Webshop management Other Cost built-up ecommerce operations
Carrier management & Transport 1% 1% 3% 2.5% 2% 6% 0.5%
product obviously impacts the relative costs. Understanding the structure of costs is crucial if smart solutions are to be offered that result in lower costs across the entire chain. For example, fast processing of returns may not only lead to lower customer service costs but also to a higher percentage of returning visitors and reducded costs related to selling obsolete stocks.
Vision 2015:
‘Growth through Quality’
We aim to distinguish ourselves by supplying the finest quality. By fo-cusing on quality, combined with an authentic partnership concept, we aim to continue to grow together with our existing and new customers. In 2014 we will continue to invest in the quality of our service provision so that we surpass the agreed Service Level Agreements (SLAs) with our customers and continue to amaze the end consumer. The online shopper is becoming increasingly moredemanding whereby a superior service is requiredto ensure that the consumer will remain a loyal customer at the webshops of our clients. We are aware that we play a crucial role in this, which is why we are continually investing in the provision of our services.
To safeguard our quality we have invested in our IT systems and warehouse hardware over the past few years. We will continue to do this in 2014 to ensure that we provide a high standard of services and a sound basis for building on our 2020 strategy.
Vision 2020:
‘Smart Growth’
In the long term we believe in optimizing the e-commerce chain. During the coming years, the focus of our customers will primarily be on making the business model more pro-fitable and less on exponential growth. In addition, the IT landscape will become increasingly more complex for e-commerce companies and ana-lysis capabilities will have to increase
to be able to use the enormous data streams for improving the entire chain. The market has ter-med this ‘big data’. In dialogue with our customers, we will be developing business-model-specific solutions. We will be making a start in 2014 by allocating dedicated teams to faci-litate each business model. Within each team we will encourage know-ledge sharing between suppliers, partners and customers with the ul-timate aim of developing unique so-lutions to ensure that our customers will be successful online, now and in the future. Our customers’ success is also our success and together we can achieve ‘Smart Growth’.
To impress 500.000
online shoppers…….
every day!
2000 2005 2010 2015 2020
B2C logistics Webshop design & management e-fulfilment e-payments e-commerce International fulfilment Reverse logistics Reporting & analysis
Smart ecommerce solutions Smart connections
Continuous improvement & business intelligence Gear to growth Flywheel to growth Growth trough quality Smarth growth
Western
Europe
169.8 bn., 15.8% growthNorth Europe
28.7 bn., 15.1% growthCentral
Europe
76.3 bn., 20.5% growthSouth Europe
32.4 bn., 25.2% growthEast Europe
13.4 bn., 32.6% growth250
million E-shoppers
million
internet
users
Total turnover e-commerce
€ 312 Billion + 19%
529
2
million
e-commerce
jobs
550.00
estimated online businesses
3.5
billion parcels
Winning team
In collaboration with our clients (partners), we aim to be a winning team. Our clients expect us to adopt a proactive attitude and see us as a knowledge leader in the field of e-commerce. We support our customers in understanding the entire e-commerce chain. The com-plexities and internationalization of e-commerce make it vital to be part of a winning team. Our experience in e-commerce gives us a clear idea of the challenges specific to each business model. In addition, we are capable of working very closely together with diverse partners. As a result, each party is able to focus on their expertise. The colla-boration with partners enables us to switch quickly and innovate. This results in the best possible solution for our customers and ultimately the end consumer.
Smart solutions
E-commerce is becoming increasingly more complex. Increasing omnichannel activities, expanding product ranges and internationalization call for intel-ligent communication and integration between systems and smart solutions. Each business model has its own spe-cific challenges for which solutions must be found.
It is vital that the right data is supplied to the right people at the right time to ensure that they are able to make better decisions. By implementing our new Business Intelligence platform we have taken an important step forwards on which we can continue to build our strategy. Using IT and Business Intelligence, we can create substantial business value for our customers. Business Intelligence and IT have become our competitive advantage.
Operational excellence
Our customers know what to expect from us thanks to the establishment of clear SLAs and they are confident that we fulfil them every day. This gua-rantee gives our customers peace of mind, which enables them to focus on their core business. Delivering quality is crucial for our customers given the fact that the consumer sees this as part of the entire ‘customer journey’. We excel in reliability at every scale so that our customers’ service propositions remain always the same high level: even during significant peak pressure. We continue to keep a critical eye on our processes and are persistent in our continued optimization of these processes. This enables us to maintain high quality levels for fair conditions. In addition, we strive towards an organization in which a right-first-time culture prevails. Quality has become a part of our daily operations.Western
Europe
169.8 bn., 15.8% growthNorth Europe
28.7 bn., 15.1% growthCentral
Europe
76.3 bn., 20.5% growthSouth Europe
32.4 bn., 25.2% growthEast Europe
13.4 bn., 32.6% growth250
million E-shoppers
million
internet
users
Total turnover e-commerce
€ 312 Billion + 19%
529
2
million
e-commerce
jobs
550.00
estimated online businesses
3.5
billion parcels
(estimated 5% of total retail)