Welcome to the Otto Group. Otto Group company presentation (Date of June 2015)

Transcription

1 Welcome to the Otto Group

2 Agenda 1 Otto Group international, multifaceted, innovative 2 Vision and mission 3 Business segments overview 4 Sustainability at the Otto Group 5 Otto Group as employer 6 E-commerce strategy of the Otto Group 2

3 1. Otto Group international, multifaceted, innovative 3

4 Management The Executive Board of the Otto Group Hans-Otto Schrader, Chairman of the Executive Board and Chief Executive Officer Otto Group (CEO) Dr. Rainer Hillebrand, Vice Chairman of the Executive Board, Member of the Executive Board, Corporate Strategy, E- Commerce, Business Intelligence Otto Group Alexander Birken, Member of the Executive Board, Multichannel Distance Selling Otto Group, Spokesman OTTO Hanjo Schneider, Member of the Executive Board, Services Otto Group Petra Scharner- Wolff, Member of the Executive Board, Finance Otto Group, Chief Financial Officer (CFO) Neela Montgomery, Member of the Executive Board, Multichannel Retail Otto Group Dr. Winfried Zimmermann, Member of the Executive Board, Projects, Controlling, Transformation & IT Otto Group 4

5 International success The Otto Group is a worldwide-operating retail and services group with 123 companies of primary significance in more than 20 countries. 5

6 Business segments of the Otto Group Multichannel Retail Financial Services Services with catalogue business, e-commerce and over-the-counter retail. providing retail-related financial services across the value-added chain. covering the entire portfolio of retail services across the value-added chain. 6

7 History development into a global Group Foundation and development stages From a small mail-order shoe retailerto a company employing 1,000 people. International expansion By taking a share in 3 Suisses International, France, the development into an international group of companies starts. Globalisation and diversification In the mid-90 s, the Otto Group starts to push e-commerce as a pioneer in the business. The companycontinues to expand in Europe and Asia Becoming a major player 1970: the Otto Versand breaks the billion barrier for the first time. New head Dr. Michael Otto takes over as Chairman of the Executive Board from 1981 to In 1986 environmental protection codified as corporate objective. 7

8 History the new millennium Logistics provider Hermes merges all logistics services under the Hermes Logistik Gruppe umbrella brand, thus becoming the strongest competitor to the German postal service. Prof. Dr. h.c. Werner Otto dies On 21 December 2011, company founder Werner Otto dies at the age of 102. Next generation Benjamin Otto takes on an active role for the Otto Group as Managing Partner Change in the management After 26 years on Executive Board, Dr. Michael Otto moves to Supervisory Board. Hans-Otto Schrader becomes the new chairman of the Executive Board. Open Commerce Collins presents the first open commerce approach on the German e-commerce market. 8

9 Global revenue trend Consolidated revenue in euros 2014/15 12,1 bn 2013/14 12,0 bn 9

10 Revenue in the three segments in 2014/15 Revenue in million euros 9,917 1, Multichannel Retail Financial Services Services 10

11 Convincing development abroad Revenue in million euros (FY 2014/15) Germany 7,139 France 1,116 Russia 413 Europe (excl. GER, F, Ru) North and South America Asia and other regions 1,838 1,

12 Otto Group employees Employees worldwide (full-time positions) 54, /15 12

13 2. Vision and mission 13

14 Responsibility out of tradition Dr. Michael Otto, chairman of the Supervisory Board of the Otto Group, has accepted responsibility and shown great commitment for decades, thus establishing a company tradition. Profitability and sustainability go hand in hand, economic freedom and responsibility for people and the planet are two sides of the same coin. 14

15 The Otto Group vision The Otto Group vision: The Otto Group is a globally active corporate group of retailers and retailrelated service providers with successful business concepts that acts responsibly for people and nature. Hans-Otto Schrader, CEO Otto Group, shows in his daily work, that responsibility is more than a phrase for the Otto Group. 15

16 Mission the power of responsibility The mission is the corporate strategic cornerstone, reflecting what the Otto Group stands for. It provides a common framework for action, calling on each employee to get involved in the fields of sustainability, profitability, innovation and diversity. 16

17 Mission the four values of the Otto Group Profitability We are responsible for the profitability of the Otto Group. Because it is the basis of everything we do. Innovation We are responsible for driving the development of the group forward for the long term with an emphasis on highpowered innovation. Diversity We are responsible for providing our customers and the market with outstanding products and independent concepts. Sustainability We are responsible for encountering customers, employees, partners, society and nature with great respect. 17

18 3. Business segments overview 18

19 Business segment Multichannel Retail Successful across all channels Catalogue business, e-commerce and over-the-counter retail constitute the three pillars of the Otto Group Multichannel Retail segment. The growth engine e-commerce is the strongest sales channel. 19

20 Business segment Multichannel Retail Growth engine e-commerce 6.5 bn Euros 4.2 bn Euros Otto Group Online revenues worldwide Otto Group Online revenues Germany +5.1% +5.1 % million euros million euros 20

21 Business segment Multichannel Retail Otto Group globally successful in e-commerce North America Germany Russia South America Europe Asia Majority Shareholdings of Otto Group Minority shareholdings of Otto Group 21

22 Business segment Multichannel Retail Tremendous success in e-commerce The Otto Group Is the world s second-largest online retailer (B2C). Is Europe s biggest online retailer for fashion and lifestyle (B2C). Realises with its more than 100 online platforms 65 per cent of all earnings in the Multichannel Retail segment. 22

23 Financial Services segment The Financial Services segment comprises the Group-wide offer of international financial services provided by Otto Group companies. Retail-related products and services including consumer credit, liquidity management and payment are the core focus areas. 23

24 Financial Services segment Revenue in the Financial Services segment in million euros / /15 24

25 Services segment Services around the globe: Through its companies in the Services segment, the Otto Group positions itself as the global enabler for the entire commercial services portfolio, including purchasing, quality assurance and delivery. This segment is mainly subsumed under the umbrella brand of Hermes. 25

26 Services the umbrella brand Hermes Sourcing & Product Transport logistics Fulfilment Distribution Hermes-OTTO International, Hermes Hansecontrol Developing, procuring and delivering custom-made products, entire collections and own brands. Quality assurance Hermes Transport Logistik Transports Costums clearance Hermes Fulfilment, Hermes NexTec Services along the entire flow of goods Hermes Logistik, Hermes Einrichtungs Service Parcel service, cross-border transport in Europe. Delivery and assembly of furniture and large appliances. 26

27 Services segment Revenue in services segment in million euros 1,301 1, / /15 27

28 4. Sustainability at the Otto Group 28

29 Sustainability as guiding principle of corporate culture Corporate responsibility is an integral part of the Otto Group Vision. Responsibility for sustainability has been elevated to chief executive level. The CR Board provides a common reference for the strategic alignment of corporate responsibility within the Otto Group. 29

30 Otto Group sustainability is firmly anchored Environmental protection declared as a corporate target Introduction of CO 2 controlling at Hermes OTTO is the first retail company worldwide with an environmental management system in accordance with ISO BSCI (business-driven initiative for social standards) established on the initiative of the Otto Group Introduction of the CR Strategy 2020 with five major substrategies Performance-based Management Board remuneration is linked to achievement of CR goals Systematic CR management established Binding Code of Conduct Otto Group publishes first sustainability report in the trading segment Ambitious climate strategy Reduction of CO 2 emissions Award winning impact process makes sustainability management more fact-based 30

31 CR-Strategy 2020 of the Otto Group Sustainable development of the business model CR Strategy 2020 Raw materials & processing Final production Trade Customer Society Employees Textile Strategy 100% sustainable cotton Furniture Strategy 100% FSC - cert. furniture Paper Strategy 50% FSC - certified paper Social Programme 100% integration of suppliers in the Social Programme Climate Strategy -50% CO 2 Decentralised activities of Otto group companies Foundations Social commitment of Otto Group companies Further education Compatibility of family and work Health management CR incentives: Since 2014/15 the degree of achievement of CR targets is linked to the compensation of the Group s Executive Board 31

32 impact Sustainability Management Process Assessing environmental and social impacts. Acting sustainably. Step 1 Step 2 Step 3 Target Measuring and evaluating the environmental and social impacts along the entire value chain to control and influence adverse effects and risks. Materiality Analysis Quantitative and qualitative assessment of the environmental and social impacts of the Otto Group business operations to identify key topics. Developing Measures Developing measures for key topics and evaluating these according to their potential to reduce negative impacts, the benefits for the Otto Group and the efforts required for implementation. Implementing Measures Implementing the most effective and efficient measures under the umbrella of the CR strategy 2020, such as the climate strategy with a reduction target of 50% CO 2 until Review Every two years the materiality analysis will be carried out to verify the measures in terms of their contribution to reducing the environmental and social impacts and to develop new measures. 32

33 5. The Otto Group as employer 33

34 E-recruiting looking for talent Breaking new ground in the war for talent. Recruiting excellently trained junior staff through social networks. Video -supported applicant interviews via Skype. 34

35 Education and training at a high level School leavers are offered a wide range of commercial, technical and business vocationaltraining courses. Besides direct entry for graduates, the Otto Group also offers trainee programmes for university graduates. The Otto Group offers its employees continuing professional development courses with a focus on expanding professional skills and their own personality. 35

36 Otto Group university cooperations The Otto Group supports young people already during the job orientation stage, cooperating with colleges and universities. The cooperations offer students an opportunity to link theoretical and practical work while still at university. The Otto Group offers future executives inservice training through a cooperation with the Leuphana University in Lüneburg. 36

37 Success through passion The Otto Group creates a job environment promoting innovative ideas, diversity and equal opportunities while providing ample room for development and dialogue. To ensure that employees can realise their full potential, the Otto group provides both educational training and systematic health management. Flexible working hour models help to establish a reasonable work-life balance. 37

38 6. E-commerce strategy of the Otto Group 38

39 6. E-commerce strategy of the Otto Group The four pillars of the strategy Transform Participate Create Venture Multichannel- Retail Financial Services & Services Internet Pure Player Venture Capital 39

40 E-commerce strategy of the Otto Group Transform: Consistent further development to e-driven Companies Companies such as OTTO, SportScheck, Baur and Bonprix, which have their origin in the distance or stationary trade are evolving into e-driven companies. Expansion of mobile activities, the fields Connected Retail, Business Intelligence and custom software development are important tools in the transformation. 40

41 E-commerce strategy of the Otto Group Participate: Via our financial services and services we benefit from the global e-commerce boom The Otto Group covers the entire value chain of trade. That puts us in a unique position to benefit from the e-commerce boom with our service offerings in areas such as logistics, financial services and payment, Big Data and Web - Enabling. 41

42 E-commerce strategy of the Otto Group Create: Development of internet pure players The Otto Group operates over 100 online stores and reaches about different audiences, including: mytoys.de (Children & Families), swimwear365.co.uk (swimwear) and aboutyou.de (young fashion). First-hand experiences in online-retailing will serve to further develop our multichannel-brands. 42

43 E-commerce strategy of the Otto Group Venture: Building promising business models The Otto Group is investing in promising start- ups via the subsidiaries e.ventures and Project A since For the participation in new business concepts, the Otto Group has put aside a three-digit million euro amount. 43

44 Contact Otto (GmbH & Co KG) Thomas Voigt Corporate Communications Werner-Otto-Str Hamburg Germany Phone: Fax:

45 Thank you for your attention! 45