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Graeme McFaullCEO
Investor Meeting
17 April 2007
Overview
• Structural and Cultural Change
- ‘One Wincanton’
- ‘Four Pillars’
• Our Track Record
- Significant cash flow generation
- Organic growth and acquisitions
- Excellent TSR performance
Operational
ExcellenceCustomer
IntimacyValue Product
Leadership
Overview
• Fundamental Strategic Review
- Core geographic focus
- ‘High growth’ opportunities identified
- Vision and financial goals set
• ‘Building Momentum’ and ‘Continuing Opportunity’
Overview
• Mainland Europe : Building Momentum
- Karl Nutzinger : Germany
- Ryszard Warzocha : Central and Eastern Europe
- Fiona Durousseaud : France
• Questions
Overview
• UK : Continuing Opportunity
- Martin Taylor : Retail
- Gordon Scott : Industrial
- Jeff Anderson : Manufacturing
• Questions
Investing for Growth in Germany
Karl NutzingerManaging Director
Wincanton Germany
Hamburg
Bremen
BerlinBraunschweig
Magdeburg
LeipzigDresden
ChemnitzEisenach
GüterslohWesel
NeussWuppertal
KölnDüren
Duisburg
MainzFrankfurt
WormsBischofsheim
MannheimSt. Ingbert
Heilbronn
Fulda
Bamberg
NürnbergKarlsruhe
Kehl
Weil
Stuttgart
AugsburgMünchen
Schömberg
Bergisch Gladbach
Frankenthal
Bünde
Neubrandenburg
Neustadt-Glewe
Itzehoe
Hannover
Herborn
Göttingen
Hof
Würzburg
Ulm
KemptenRosenheim
Rheine
Basel
Strasbourg
Thionville
Reims
RotterdamRidderkerk
MoerdijkZwijndrecht
VenloAntwerp
Wittlich
Winnersh/UK
Neuburg
Daun Koblenz
Groß-GerauLille
RegensburgRastatt
s‘Heerenberg
• 4,100 Employees
• 76 Locations
(plus 13 subsidary locations outside Germany)
• 750 m€ revenue (2006/2007)
• 400,000 m² warehouse space
One Wincanton in Germany: Project Phoenix
• 9 operational companies merged into “Wincanton GmbH”
effective 1st November 2006
• Strong, unique messages to the market
• Flat management structures
• Focus on business sectors and product portfolio
• Full utilisation of infrastructure and synergies
• Replication of products / solutions in multiple locations
• Integrated Service Provider: One-Stop-Shopping
Business Sectors
Business Development
Solutions
RoadIntermodal
High-Tech
Road
• 40 locations / 2 hubs
• 24hr service
• Hub and spoke system
• Distribution and collection
• Procurement logistics
• 220 daily line hauls
• 3.1m. shipments
• 20,000 customers
• Customer pool forinternational transportsolutions
High Tech
• Specialised transport
network for highly
sensitive cargo
• High end distribution
• Technical services
• Specialised equipment
• Installation services
• High security levels
• Market leading
• European network
Intermodal
• Trimodal integrated solutions
with barges, rail and road
• Market Leader on the Rhine
• 600,000 TEU per year
• 6 container terminals
• Presence also in France,
Switzerland and Benelux
• Wincanton Rail: own railway
company
• Specialist in bulk cargo
Solutions
• Contract logistics structures forstrategic customers
• Integrated offering tailored tocustomers needs
• Combining the Wincantonexpertise
• One face to the customer
• Long standing partnerships
• Creating value and innovation
Business Development
• Unique structure enables cross and deep-selling
• 60 specialists for differentindustries
• Focus on middle sizedcompanies and multinationalblue chips
• Key Account Management fornational and internationalcustomers
• Ongoing Wincanton image campaign
Major wins in 06 / 07
• Elco
• Unilever
• Optimus
• Drescher
• Decete
• Volkswagen
• Wincor Nixdorf
• Würth
• German Pellets
• MAN
Major renewals in 06 / 07
• Bunge
• Volvo
• Exxon
• BMW
• BP Castrol
• John Deere
• Hamman
• Lafarge
• Ruhrkohle
• Thiele Kaolin
Key market drivers in Germany
• Biggest European market
• Recovery of economy
• Economic growth
expected 1.7 % in 2007
• Growth of logistics market
3.5% p.a.
Source: Die Top 100 der Logistik, 4. Auflage 2006
Source: Deutsches Institut für Wirtschaftsforschung
1
2
1
2
1%
2%
3%
4% Logistics
Economy
Development of a five yeargrowth strategy: Project WAVE
• Confirmation of our core competencies
• Development of new products in high growth / high profit market sectors (Customers / Market segments)
• Concentration on investments and management focus on key areas
Strategy Implementation Programme:
• Audit and analysis of organisation and potential of eachlocation
• Strategic and operational realisation of WAVE – Strategy
• Building of operational and human resources to supportstrategy
German growth strategy
• Defined areas of focus:
- Contract logistics
- International road transport
- High Tech Products
- Container Terminal Operation
- Border Crossing Rail Services
• Investments:
- Human resources
- Infrastructure
- IT excellence
Summary
• Strong presence in Germany
• Consolidation process finished
• Growing German market
• Strategy plan defined
• Excellent basis for long term progress
Focus and Priorities in Central & Eastern Europe
Ryszard WarzochaManaging Director
PIASECZNOPIASECZNO
GDA SKGDA SK
SZCZECINSZCZECIN
POZNAPOZNA
B ONIEB ONIE
ÓDÓD
WROC AWWROC AW
SOSNOWIECSOSNOWIEC
TARNÓWTARNÓW
MIELECMIELEC
PRAGUEPRAGUE
BRNOBRNO
SENECSENECDEBRECENDEBRECEN
BUDAPESTBUDAPESTGYORGYOR
PECSPECS
SZENTGOTTHARDSZENTGOTTHARD
KESCSKEMETKESCSKEMET
Wincanton presence
RUZOMBEROKRUZOMBEROK
Economical situation in CEE
Poland:
• Population: 38.6 million
• GDP growth: 5.8 %
• Inflation: 1.4 %
• Budget deficit related to GDP: 3.4 %
• Unemployment rate: 12.2 %
Czech:
• Population: 10.2 million
• GDP growth: 5.9 %
• Inflation: 1.7 %
• Budget deficit related to GDP: 3.6 %
• Unemployment rate: 7.1 %
Slovakia:
• Population: 5.4 million
• GDP growth: 8.3 %
• Inflation: 4.2 %
• Budget deficit related to GDP: 3.8 %
• Unemployment rate: 13.3 %
Hungary:
• Population: 10 million
• GDP growth: 4.0 %
• Inflation: 7.8 %
• Budget deficit related to GDP: 10.1 %
• Unemployment rate: 7.4 %
Wincanton in Poland
Turnover: € 70 million
Employees: 920
Employed Vehicles: 750
Warehousing: 145,000 m2
Services
• Contract logistics and warehousing
• National distribution
• International transport
• Sea freight
• Warehouse and transport systems
• Supply chain analysis
• Value added services
Sectors
• Consumer goods
• Electronic and white goods
• Retail
• Automotive
• Industrial
Ma aszewicze
Warszawa
Szczecin
ód
Wroc aw
Mielec
Pozna
Sosnowiec
Gda sk
Tarnow Rzeszów
PiasecznoB onie
Gdynia
Dzier oniów
Wincanton in Hungary
Turnover: € 21 million
Employees: 360
Employed Vehicles: 500
Warehousing: 72,000 m2
Services
• Contract Logistics and Warehousing
• National Distribution
• International Transport
• Custom Clearance
• Warehouse and Transport Systems
• Value Added ServicesPécs
Gyöngyös
BudapestGyör
Békéscsaba
Szeged
Szirmabeseny
Várpalota
Budaörs Dunaharaszti
ZalaegerszegKecskemét
Debrecen
Sectors
• Consumer goods
• Retail
• Automotive
• Industrial
Wincanton in the Czech Republic
Services
• Contract Logistics and Warehousing
• National Distribution
• International Transport
• Warehouse and Transport Systems
• Supply Chain Analysis
• Value Added Services
Kralupy
Brno
Prague Ostrava
Sectors
• Consumer goods
• Retail
• Automotive
• Industrial
Turnover: € 8 million
Employees: 112
Employed Vehicles: 75
Warehousing: 17,500 m2
Wincanton in the Slovak Republic
Services
• Contract Logistics and Warehousing
• National Distribution
• International Transport
• Warehouse and Transport Systems
• Supply Chain Analysis
• Value Added Services
Senec
Sectors
• Consumer goods
• Retail
• Automotive
• Industrial
Turnover: € 2 million
Employees: 60
Employed Vehicles: 50
Warehousing: 6,000 m2
Ruzomberok
Market trends - CEE
• Increase of investment and production
• Industrial development in Poland
• Development of automotive in Slovakia and Czech
• Still low remuneration rates
• Migration of people to other EU countries
• Increase of the payroll costs, increase of efficiency
Latest wins - Poland
PZ Cussons
Rieber Foods
Johnson Diversey
Selena
Latest wins - Hungary
Henkel
Group SEB
SSL
Goodyear
Latest wins – Slovak Republic
New Business Opportunities
• Pharmaceutical
• Chemical
• 4 PL – transport management
• VAS
• Recycling
A new platform for growth in France
Fiona DurousseaudGeneral Manager
A national platform
Sectors
• Automotive
• Consumer goods
• Retail
• Industrial
• Chemicals and lubricants
• Pharmaceuticals
Turnover: € 160million
Employees: 1,500
Owned Vehicles: 300
Warehousing: 600,000 m2
Locations: 30
Services
• Contract logistics and warehousing
- National distribution
• International transport
• Air and sea freight forwarding
• Warehouse and transport systems
• Supply chain analysis
• Value added services
Early successes / new business wins
• Consumer goods
- Kronenbourg : dedicated warehouse / 6 years
- SSL Healthcare : 3 years
- Christofle
• Catalogue / Internet shopping
- Kiala : 3 years
- Society of roof windows : 5 years
- Outiror : 3 years
- HSS
Future opportunities
• Increasing brand recognition
• Excellent feedback SITL 2007
• Extensive new
contacts
• Higher tender
activity expected
Future opportunities
Group customers cross-
border opportunities
• Decathlon: France / Poland
• Daikin: France / Belgium
• SSL: France / Hungary
• Seb: France / Hungary
Tender Activity
• €10m opportunity across
sectors
Lyon
Toulouse
Strasbourg
Nantes
Paris
Future opportunities
- Internet / home delivery
- General retail
- Consumer goods (FMCG, electronics & appliances)
- Transport management
- Consultancy: opening of Consilium this year
- Other group activities such as reverse logistics or waste management
Target sectors
Service expansion
Current Status
• Successful integration
- 4 Pillars
- Operational Excellence
- HS & E Standards
• Customer and sectors account plans
- Identifying opportunity
• Building the pipeline : growing tender activity
• Pipeline significantly up on last year
Retail
Martin Taylor
Managing Director
Wincanton’s Customer Base
• Major contracts with 15 of the top 30 retailers
• Major 3PL for all the top supermarkets –Tesco, Sainsbury’s, Asda,
Morrisons, Somerfield
• Retail turnover to top £1b p.a. in 2007/2008
Market Developments
• Supermarkets move into non-food
• Non-food retailers source more product from Far-East
• Growth in multi-channel selling – Internet / Home Delivery
• More attention to availability and increase in store delivery frequency
• Increase in proportion of meals that are ‘eaten out’
Wincanton Wins – Last 2 Years
Argos: • Corby (500k sq ft)
• Kettering (700k distribution centre)
Sainsbury's: • Buntingford
• Maltby
• Northampton (700k sq ft)
Screwfix: • Stafford
• Stoke
Comet: • UK transport
Asda: • Doncaster (700k sq ft)
Dunnes Stores: • Dublin (Textiles)
Marks and Spencers: • UK (Non-merchandise)
Opportunities
Home Delivery – 2 man:• Dedicated
• Network
Far East: • UK supply chain through Kerry JV
Food Retailers: • Continue to outsource
Non-Food Retailers:• Increased outsourcing plus trend to
shared user
Container Bases: • Port distribution centre
Food Services • Network capability
Multi-Channel Selling
• Massive growth of 30% per annum in internet sales
• As store sales decline, internet sales increase
• Wincanton acquired Lane Group in October 2006 for its two-man
home delivery capability
• Dedicated Home Delivery – Comet, B&Q, Magnet, Homebase
• Network Home Delivery – Electrolux, Bosch, Sainsbury’s
• Wincanton one of the few 3PL that has UK network capability
Home Delivery - Improvements
• Built on the ‘unique’ Home Delivery software to ensure a more
robust operating platform
• Invested in ‘Best in Industry’ equipment that ensures a reliable
operating platform
• Raised efficiency by 35% in past 6 months
• Introduced dedicated management focused on delivering
improvements and efficiency into the network
• Identified and implemented a new ‘fit for purpose’ location which
allows for anticipated growth
Container Logistics
• As manufacturing output falls within the UK, more products are being
sourced from overseas in particular from the Far East
• Wincanton has identified requirements for container storage away form
congested and expensive ports. Ports facing pressure on space as
container ships become larger
• Wincanton sees additional benefits for our customers as this offering
expands the supply chain and offers the customer greater control over
what is delivered into a distribution centre and when
• The recent JV with Kerry allows Wincanton to provide a well controlled
and efficient end to end supply chain solution
Industrial Sector
Gordon ScottManaging Director
Business Focused on Four Key Sectors
Construction Recycling
Milk Petrochemicals
Customer Base
Local Authorities
High Growth
Mature Sectors
Construction
• Key Issues Driving Change:
• New Legislation• Carbon Footprint• Sustainability• Planning
• Ongoing demand and major infrastructure projects
• Complexity creating opportunity in fragmented market:
• No major 3PL presence• Regional Competitors
Recycling
• Key Issues Driving Change:
• Landfill restriction• European legislation• General environmental awareness• Latest position
• Fundamental change in retail and manufacturing supply chains
• Complexity creating opportunity in new market:
• Compliance schemes and traceability• Infrastructure and networks
Recent Wins / Renewals
Local Authorities
Manufacturing Sector
Jeff AndersonManaging Director
Broad Range of Services
Typical Supply Chain
Food FMCG: Services: Co-PackingPallet ControlTransportWarehousing- Shared User- Temp Controlled- Bonded- Automated
& Drink:
Significant Market Changes
Warehousing
• Decline of automation
• Shift to shareduser
• Collaborationsolution
• Offshoringproduction
• Reduced stock holding andSKUs
Transport
• Backhaul based pricing
• Central planning
• Inboundmanagement
• Factory GatePricing
• Smallerconsignments / split waves
Added Value
• End to End solutions
• Co-Packing
• Co-Manufacturing
• Property and assetsolutions
• Adminoutsourcing
• Holistic view of supply chain
Retailer Power and Price Pressure
Open Book to Closed Book
Rationalisation of Manufacturers’ Supply Chain
Recent contract wins
FoodManufacturers
Drinks
New Services
Temperature controlled warehousing and transport
National transport
National transport
UK warehousing
International movements
Co-Packing
Co-Manufacturing (robotic)
Centralised transport planning
Future growth strategy
•Global Manufacturer Consolidation •Centre & DC Replenishment
Port Centric Manufacturer
Consolidation Centres
•3. Order•Amendment
•1. Orders
•2. Visibility of•Stockholding & Demand
•Global Manufacturer Consolidation
North and South Consolidation
Centres
Global + 2 Smaller Manufacturers
Collaboration
• Environmentally friendly
• Reduces cost
• Service simplicity for retailers
• Based on product, services and processes
• Inclusive and holistic supply chain
TransportOptimisation
• Single, integratedtransport network
• Dynamic scheduling and optimisation
• Scalable and flexible
• Reduces cost
Future growth strategy
Co-packing
• Provides non-core manufacturing processes
• Extends service offering to existing customers
• Exploits warehouse synergies and removes unnecessary transport cost
• From simple labelling to promotional packs to robotic co-manufacturing
• Operations for Heinz, P&G, Purina
• Dedicated or shared user
Manufacturing Food Services
• Integral part of wider transport and food services strategy
• Independent small drop and vending network to Manufacturers
• Alternative to traditional wholesale model
• Shared user route to market
• Synergistic, cost savings
• Chilled, ambient and beverage product groups
Graeme McFaullCEO
Summary
Summary
• Culture and Focus
• Momentum and Opportunity
• Organic Growth and Acquisitions
• European Leadership our Goal
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