3PL Strategies for Moving to

New Markets

Brussels, 24-25 November 2010

Slawomir Blotny

Vice-President of the Board / Key Account Executive Raben Group

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The dilemma

98 600 m2 EBITA

ROI 98,2%

7 424 893€

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Agenda

• Introduction of Raben Group

• How we entered the countries we now operate in

• The advantages and challenges of starting operations in new

markets vs. acquisitions

• Lessons learned

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1931 1991 1994 1997 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010

Raben Group – Employment

Data at the end of each year * status as at 31.10.2010

*

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Raben Group’s operations in Europe

Raben Group depots

countries in which branches of Raben Group are located

countries covered by Raben Group services

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Raben Group

• Family-owned & family-managed

• Group of companies with serious intention of

growth

• Focus on Customer Service

• Corporate rules of management

• Employment - ca. 5200

• Total warehouse capacity - ca. 485.000 m2

• Transport means at disposal - ca. 4000

How we entered the countries

we now operate in

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• Our vision is

• Growth scenarios are:

• organic growth or

• acquisitions

To Become a Leader

Everywhere We Are

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• Organic growth:

• Field sales

• Key Account sales

• High sales retention through the best customer service

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Analyze...

&

Rabenize.

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• Acquisitions:

• Product fit

• Company culture

• Position in the market

• Management capabilities

• Profitability

The advantages and

challenges of starting

operations in new markets

vs. acquisitions

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Culture

Yes No

Organic

growth Acquisition

Stable

company

Unstable

company

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• Culture

• Local

• Business

Culture

Yes No

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Culture

Yes No

Organic

growth

Advantages Challenges

implementation of own processes Customers, business partner need a long time

to give trust to the new organisation

perfect match with the company vision,

mission, strategy, products

long way to achieve satisfying market

share/critical mass to be cost effective

create own organization culture, people act in

the same direction difficulties to hire excellent staff

investment can be spread over longer period overpay salaries

Organic growth

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Stable company Culture

Yes No

Organic

growth Acquisition

Stable

company

Unstable

company

• Acquisitions of a stable company

• Financial performance

• Management capabilities

• Customers

• Market shares

• Operations

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Stable company Culture

Yes No

Organic

growth Acquisition

Stable

company

Unstable

company

Advantages Challenges

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

providing managers with new opportunities for

career growth

own funds needed in today’s financial market

situation

you can share the best practices

buy „healthy” market share, Customers,

Employees, know how

synergy effects

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Unstable company Culture

Yes No

Organic

growth Acquisition

Unstable

company

• Acquisition of an unstable company

• Financial performance - low

• Management capabilities - poor

• Customers - not satisfied

• Market shares - low

• Operations - low/poor level

or

or

or

or

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Unstable company Culture

Yes No

Organic

growth Acquisition

Unstable

company

Advantages Challenges

synergy effect possible difficulties to explain this path to shareholders

and stakeholders

providing managers with new opportunities for

career growth

integration plan with support of full team (HQ,

other BUs’ of the Raben Group and local)

skeletons in the closet

own funds needed in today’s financial market

situation

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

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Rabenizing starts from...

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Professionalism

Values at the Raben Group

Entrepreneurship

Customer Orientation

We Act With Passion

Reliability

Lessons learned

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

• It seems that our business units do much better if their HQs

are located outside the countries' capitals

• Due diligence may show good financial and legal result but this

does not mean that operations and customer relations are at

expected level

• International company versus local entrepreneur

• We do not have to be present everywhere

Lessons learned

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Rabenizing in progress

Baltic States

3,000m2

Ukraine

50,000m2

Poland

250,000m2

The

Netherlands

4,000m2

Germany

70,000m2

Hungary

22,000m2

The Czech Rep. / Slovakia

85,000m2

Total: 485,000m2

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No matter which solutions you choose…

Just remember…

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You have plenty of nails in each decision,

the key is to choose the proper one

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Thank you for your attention!

If you have any questions,

please, do not hesitate to ask

now or contact us later:

Slawomir Blotny

Vice-President of the Board / Key Account Executive

Raben Group

phone: + 48 61 89 88 219

e-mail: Slawomir.Blotny@raben-group.com