Masterclass Strategisch Financieel
Management voor Food
Nyenrode Business University
September 15th, 2014
Ton van Veen
Sustainable growth
The right balance between enabling growth
and managing the downside
2
Agenda
Introduction
Background Jumbo
Acquisition Super de Boer and C1000
Further growth initiatives
Control mechanisms
The balancing act…
3
Introduction (1)
1982
1988
4
Introduction (2)
1993
1997
2004
5
Background Jumbo
6
Family firm with strong entrepreneurial history …
7
… with customer focus in all respects
8
Executive Board
Frits van Eerd - CEO
Ton van Veen - CFO
Colette Cloosterman-van Eerd - CCO
Niels Onkenhout - C1000
9
Management Board
10
Supervisory Board
President: Karel van Eerd
Members:
Harry Bruijniks
Wilco Jiskoot
Antony Burgmans
Leon van den Boom
11
Shareholders
12
Where can we identify JUMBO Supermarkten?
Open family
Financial objectives
Transitional fam. firm
O
w
n
e
Distribution r
of shares
s
h
i
p
Close family
Cousin consortium
Open family firm
Professional cousin consortium
Average fam. firm
Professional fam. firm
Family objectives
Family dominant
Management
Non-family dominant
13
Where can we identify JUMBO Supermarkten?
Open family
Financial objectives
Transitional fam. firm
O
w
n
e
Distribution r
of shares
s
h
i
p
Close family
Cousin consortium
Open family firm
Professional cousin consortium
Average fam. firm
Professional fam. firm
Family objectives
Family dominant
Management
Non-family dominant
14
Holland turns yellow…
4.000
3.500
3.000
2.500
2.000
1.500
1.000
500
0
15
Acquisition Super de Boer and C1000
16
2009: acquisition Super de Boer
17
Strong sales uplift SdB stores after conversion
Average development SdB stores
200.000
175.000
Consumer sales
150.000
125.000
100.000
75.000
50.000
25.000
0
SdB omzet
SdB +25%
Actual
18
2011: acquisition C1000
19
Back-to-back transactions
54 STORES
82 STORES
78
C1000
4
JUMBO
52
C1000
2
JUMBO
DC
GIETEN
20
Support of banks is crucial
21
Leverage position
Leverage, 2009-2013 EBITDA multiple
Net debt/ Ebitda
Acquisition
of SdB
5x
Acquisition
of C1000
4x
3x
2x
1x
0x
2008
2009
2010
2011
2012 HY1
2012
2013
22
Furhter growth initiatives
23
Future growth in different formats
Supermarkten
Foodmarkt
E-commerce
De beste supermarkt in 600
Ruimte voor 10
Jumbo als bepalende
marktgebieden
Jumbo Foodmarkts
speler in Nederlandse
online foodretailmarkt
24
E-Commerce to be launched shortly
De unieke Jumbo formule
Beste service
+
=
Grootste
assortiment
X
Laagste prijs
…… ook online!
25
Customers order online and choose between pickup points and (at a later time) home delivery
Klanten kunnen kiezen om
hun boodschappen zelf op
te halen in de winkel, bij
een solo pick-up point of
op termijn de
boodschappen te laten
thuisbezorgen
Bestellingen worden in
verschillende kratten (KW,
vers en diepvries) van het
EFC naar winkels, solo pick
up points of op termijn naar
de klant thuis gestuurd
Jumbo
online
klant
Klanten kunnen
bestellen via
Jumbo.com of de
Jumbo-app
Online bestellingen worden
centraal verzameld in een
e-commerce fulfilment
center (EFC)
26
Jumbo generates Big data: 7EVEN
Uitbreiden en verbeteren van data en
analysesystemen
Opbouwen van eigen expertise om van
data klantinzicht te maken
(Ondersteunen bij) toepassen van
klantinzicht in commerciële
besluitvorming en executie
Beste service +
breedste assortiment
x laagste prijs
voor elke klant
Benutten van kennis en expertise van
leveranciers in ‘joint business planning’
27
Supplier Finance (reversed factoring) will
improve liquidity for suppliers
Jumbo
Jumbo
2
Bank
Factuur
4
Bank
Betalingstermijn
0
30
60
90
3
Vordering
verpand
1
Leverancier
28
Control mechanisms
29
Control mechanisms
Corporate Governance
Risk Management
Internal control framework
Planning & Control cycle
Jumbo DNA
30
Corporate Governance
Clear responsibilities of shareholders, supervisory board,
executive and management board
Strong representation of relevant stakeholders in decision
making (works council, franchisees, etc.)
Maximum transparency (a/o annual report, MVO-and social
reports)
Adequate set of procedures, rules and internal controls
Code Tabaksblat as a base
31
Risk Management
Financieel
Strategisch
↑
Compliance
Operationeel
32
Internal control framework
33
Planning & Control cycle
P
D
A
C
34
Jumbo DNA
Together
Entrepreneurship
Winning
35
The balancing act…
Managing the downside
Riskmanagement & control
Compliance
Setting & monitoring limits
Enabling growth
Business partner
Challenging the status quo
Trusting role for family
36
Yellowing continues…
600
stores
20 %
€
Consumer sales
7 billion
37
Thank you for your
attention!
38