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Markus Vieler

OBI Group Sourcing

Company Presentation

Lux & Euromate

Quality Management

Global Sourcing

Private Brands

Logistics

Agenda

2

Source: Strategy & Development

Company Facts

Stores

OBI Key Facts

Social Responsibility

Employees

Approximately 42,000 employees

OBI Group Holding SE & Co. KGaA

€ 7,0 billion in sales Founded in 1970

Market leader in Germany

40 product categories ranging from tools, sanitary installation, garden furniture and

iron ware

Average store size approximately 10-12,000 sqm

More than 50,000 SKU available online at Obi.de

OBI is “Top employer in Germany 2015”

OBI reached highest marks in the criteria: career possibilities, primary and

secondary benefits, work life balance & employee development

OBI supports:

German Hospice association for children since 2007

Children First association since 2002

“People first” bracelet sale since 2005

Children Sponsorship in Southeast Asia

OBI is a member of the Business Social Compliance Initiative (BSCI)

Financial 2015

~ 650 stores in 11 European Countries

~350 stores in Germany

2.5 million customers / week

Up to 50-60,000 products in each store

Company Facts: OBI as a Retailer

1995

CZ

1999

CH

1997

PL

1991

IT

1996

AT

1994

HU

2003

BIH

1998

SL

2003

RU

First OBI-store openings in Europe

3


2015

SVK

Company Facts: International Store Network

4


CZ (33)

CH (10)

PL (46)

IT (54)

AT (80) HU (29)

BIH (1)

SVK (13)

RU (27)

DE (353)

SVN (8)

• Market leader in the German DIY

retail industry and no. 3 in Europe

• 42.000 employees

• In total ~650 stores

OBI stores of the latest generation have an average of sales area between

10-12,000 sqm

An OBI store has an average product range of 50-60,000 products

One of our main features, which distinguishes us from competitors are our

integrated “Garden centers”

The outward appearance of our OBI stores is marked by the orange front and

the big entrance

Company Facts: OBI Store Formats

XS

S

XL

M

L

5


More than 50,000 articles online at Obi.de

Online Shop available in

Germany

Austria

Poland

Hungary

Czech Republic

Italy (planned in 2016)

Slovakia (planned in 2016)

Switzerland (planned in 2016)

Pick & Collect (buy online, pick up at the store) in

Germany, Austria and Russia

New project “XXL-Range” in preparation

Company Facts: OBI Online Shop / E-Commerce

6


Quality Management

Global Sourcing

Private Brands

Logistics

Agenda

7


Company Facts

8

Global Sourcing: Company Structure

OBI Group Holding SE & Co. KGaA

OBI Real

Estate

OBI Group

Sourcing (OGS) OBI Stores

OBI Stores

Germany

OBI E-

Commerce

OBI

Stores

International

Sourcing of

products

Assortment ranges

Promotional items

Asia & ROW

Quality

Management

Quality management

for all private label

products

Corporate affairs on

all quality

management related

issues (legal /

sustainability / code

of conduct)

Private Brand

Marketing

Development of

private label

concepts for private

label products

Three Corporate Responsibilities


Ø Countries

> 20%

Ø GE/ AT

> 30%

Global Sourcing: Overview

7 bn € total sales p.a.

Private label of OBI

represents 1.8 bn €

OBI sales

Strategic importance of private label products Sourcing network

Shanghai Sourcing Office

Hong Kong Sourcing Office

Ho Chi Minh City Sourcing Office

Warsaw Sourcing Office

India

South America

Agent offices Own offices

The sourcing offices fulfil the following tasks:

Merchandising

Quality Assurance

Logistic

Administration

Share of Private label

sales from total OBI sales

9


Private Label: LUX/EM

Private Label: Third Party

Sourcing volume p.a.:

1% of total volume

Product categories:

Decoration, hardware & textiles

Global Sourcing: Volumes and Product Categories


1% of total volume

Product categories:

Garden tools, garden aids


78% of total volume

Product categories:

Power tools, hardware, garden

machines, air treatment,

electrical, lighting, sanitary,

decorative, garden & events

Europe


20% of total volume

Product categories:

Flooring & timber, tile products,

shelves, storage, household

Greater Asia

India South America

10


Living / Decoration

Household

Decoration

Lighting

Electro

Garden

Garden Furniture

BBQ

Pottery

Garden (Power) Tools

Heating / Cooling

Christmas

11

37%

8%

12%

37%

Global Sourcing: Product categories


Technic

Hand Tools

Hardware

Power Tools

Building / Projects

Building

Sanitary

Product categories within all OBI countries

Quality Management

Global Sourcing

Private Brands

Logistics

Agenda

12


Company Facts

13

Full Flexibility: With our

flexible supply chain

management we are able to

realise the most efficient

goods flow to the OBI stores

The global sourcing entities

provide about 23,000

assortment SKUs and 2,000 –

3,000 promotion SKUs

In total, the global sourcing

entities ship approximately

25,000 TEU p.a.

We operate a network

consisting of multiple

warehouses across Europe

with a total capacity of

160,000 pallets, 200,000 sqm

warehouse and 7

transshipment platforms

Facts

Logistics: Overview


Logistics Network

Cross docking Central warehouse Transshipment

Logistics tasks

Design, Administration, Development, Optimization of the whole Supply Chain

Management of all related logistics tasks from source to stores

Stock Management: Order management, promotion processes

14

Logistics: Supply Chain Management

Demand

Management

Disposition Supplier Port of

departure

Destination

port

Regional

warehouse

Store

End-

consumer

Warehouse

E-Commerce


Warehouses

Own operated and external managed

warehouses

Buffer warehouses

Inbound Logistics

Sea freight

Air freight

Road transport

Transshipment

Cross Docking

Outbound Logistics

Anchorday-deliveries

Direct road transport

Road transport via Cross Docking

Quality Management

Global Sourcing

Private Brands

Logistics

Agenda

15


Company Facts

16

Quality Management: Three main segments

Quality development From quality requirement

to mass production

Quality control From production till

delivery to stores

After Sales Service • Repair service network

across Europe

• Customer hotline

• Spare part handling

Facts

Around 700 factories worldwide

Over 10,000 quality inspections a year

Quality Management


17

Quality Management: Components

Creating technical specifications

Supporting suppliers in cases of legal/standard research

Supporting supplier’s service

Technical checks in own labours

After sales service incl. repair/spare part service

Membership of Business Social Compliance Initiative (BSCI)

Validating suppliers and factories

Quality systems

Ethical & environmental standards

Pre Product Testing

Testing and approving products and packaging

During Product Inspection

Monitoring mass production by own staff or third party

Pre Shipment Inspection / Incoming Quality Control

Quality control inspections & shipment release

Quality

Management

Department

Factory &

Social Audits

PPT

DPI

PSI / IQC


Result: „Good“ (1,6)

Result „Good „ (2,3)

gut

(1,6)

18

Quality Management: Feedback from the Market


Quality Management

Global Sourcing

Private Brands

Logistics

Agenda

19


Company Facts

20

High Price Point (HPP)

Medium Price Point (MPP)

Low Price Point (LPP)

OBI Private brands offer all DIY customers OBI EXCLUSIVE products and solutions at a very good price / performance ratio

according to their individual needs, capabilities and financial possibilities.

Umbrella brand „OBI“ with core values: Trust, reliability, competence, value for money

Private Brands: Three Major Segments


OBI

Private

Label:

Active

Portfolio

Highly valuable design: product & packaging

Premium in quality, packaging, product equipment & design

for the ambitions clients at an attractive price-performance ratio

Smart alternative to leading products / brands in specialized trade

Highly emotional

Only in selected product groups

21

Private Brand Hierarchy

HPP

MPP

Key Attributes

Modern, state of the art Mainstream in a nice way

Quality reassurance by OBI

Very attractive price performance ratio as a smart and nice

alternative to leading manufacturer brands in DIY business

Reliability in well known quality standard of manufacturer brands

Basic, modern & reliable DIY products in good OBI quality

Full year / full season availability

Permanent, very attractive price positioning

Key DIY product(s) only available in the major DIY categories

LPP

Private Brands: Price / Quality Levels


Private Brands: Communication Tools

Catalogues & Leaflets

Advise-videos & Product-videos

PB motives PoS Posters, Ads & Online

22


Ads, Mailing & Newsletter

Our premium range for ambitious clients, who look for extraordinary design and excellent quality

„Premium in Quality, Function und Design. The best which we can offer, of course with an OBI price advantage“

Special: Only for selected product groups

Competitive environment: DIY store and traditional trade

Private Brands: Premium Range – OBI Selection (HPP)

23


Our brand for all, who look for manufacturer brand quality at an attractive price

Mainstream in a nice way

Modern, state of the art

Reliability in well known quality standard of manufacturer brands

Quality reassurance by OBI

Private Brands: OBI Brand (MPP)

24


25

Paints

Decoration

Ceramics

Electric

Car

Storage

Houseware

Plants

Flowers

Seeds

Fertilizer

Mulch

Plant

Devices

Garden

furniture

Sun-protection

BBQ

Fire places

Plant-pots

Christmas

decoration

Lighting

Light

objects

Bathroom

furniture

Tabs

Seats

Toilet

Shower

accessories

Sanitary

accessories

Outdoor &

indoor

lighting

Spots

Light

Objects

torches

Private Brands: OBI Brand (MPP) - Segmentation


26

Private Brands: OBI Impressions - Faucets


27

Private Brands: OBI Impressions – Ceramic Sets


28

Private Brands: OBI Impressions – Bathroom Accessories


29

Private Brands: OBI Impressions – Indoor Lighting


30

Private Brands: OBI Impressions – Switch / Sockets


31

Private Brands: OBI Impressions – Barbecue


32

Private Brands: OBI Impressions – Home Styling


The exclusive technic brand at OBI for hobby DIYer and technically ambitious clients

LUX Tools is our brand for hand- and power-driven tools including corresponding accessories

More than 90 years in experience and millions of products sold prove the outstanding trust in the brand

Modern / state-of-the-art / very attractive price performance ratio

Smart alternative to leading A-Brand competition

Private Brands: LUX TOOLS (MPP)

33


34

Private Brands: LUX TOOLS Impressions – Hand Tools


35

Private Brands: LUX TOOLS Impressions – Painting


36

Private Brands: LUX TOOLS Impressions – Power Tools


37


Private Brands: LUX TOOLS Impressions – Hand Tools

38

Private Brands: LUX TOOLS Impressions – Technique


Thank you for

your attention!

39


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