Floris Waller CFO and member Executive Board

colorfuleggnogSoftware and s/w Development

Feb 17, 2014 (3 years and 3 months ago)

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1

CXP Analyst and Investor Meeting Denver


12
-
13 September 2007

Floris Waller

CFO and member Executive Board

Corporate Express US Analyst Meeting Denver


12
-
13 September 2007

2

CXP Analyst and Investor meeting, Denver
-

12
-
13 September 2007

“Safe Harbour” Statement

under the Private Securities Litigation Reform Act of 1995


Statements included in this press release, which are not historical facts are forward
-
looking

statements made pursuant to the safe harbour provisions of the Private Securities Litigation

Reform Act of 1995 and the Securities Exchange Act of 1934.


Such forward
-
looking statements are made based upon management’s expectations and

beliefs concerning future events impacting Corporate Express and therefore involve a

number of uncertainties and risks, including, but not limited to industry conditions,

changes in product supply, pricing and customer demand, competition, risks in integrating

new businesses, currency fluctuations, and the other risks described from time to time in the

Company’s filings with the US Securities and Exchange Commission, including the

Company’s Annual Report on Form 20
-
F filed with the Securities and Exchange Commission

on March 9, 2007. As a result, the actual results of operations or financial conditions of the

Company could differ materially from those expressed or implied in such forward
-
looking

statements. Shareholders and other readers are cautioned not to place undue reliance on

these forward
-
looking statements, which speak only as of the date on which they are made.

The Company undertakes no obligation to update publicly or revise any forward
-
looking

statements.


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CXP Analyst and Investor meeting, Denver
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What (not) to expect those days


What to expect


Focus will be on Corporate Express US (CEUS)


CEUS is our North American division, excluding Canada



Strategic accounts, merchandising, CEC, logistics



What not to expect:


Strategic Review will not be discussed


Outcome can be expected at end of September


Specific date to be announcement later



No update on current trading, neither for US nor for Group

4

CXP Analyst and Investor meeting, Denver
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12
-
13 September 2007

History of Corporate Express

1851

Incorporated

1938

Listed on Amsterdam stock exchange


1993

Merger KNP, Bührmann
-
Tetterode, VRG


KNP BT

1998

KNP BT distribution’s sector


Buhrmann NV


1999

Merger with Corporate Express, Inc.


2001

Acquisition Office Supplies Division Samas



Acquisition Office Supplies Division USOP


2003

Sale of Paper Merchanting Division


2007

Sale of ASAP Software


2007

Renamed

Corporate Express NV

5

CXP Analyst and Investor meeting, Denver
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12
-
13 September 2007

BT

VRG

KNP

KNP BT

Sector Paper

Sector Packaging

Sector Distribution

Sappi

Kappa

30% flotation

BT OPI on NYSE


Multiple

add
-
on
acquisitions


De
-
listing

BT OPI

1993






1995


1997


1998




1998

Buhrmann

OP

North America

Graphic

Systems

Paper

Merchanting

OP

Europe

OP

Australia

ISD

SCH Ltd

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CXP Analyst and Investor meeting, Denver
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12
-
13 September 2007





Multiple


add
-
on



acquisitions











Corporate

Express

US OP

Samas

1998







1999





2001




2003




2007




PaperlinX

Dell

Corporate Express

OP

North America

ASAP

Software

Paper

Merchanting

OP

Europe

OP

Australia

Graphic

Systems

7

CXP Analyst and Investor meeting, Denver
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12
-
13 September 2007

Going
-
concern overview
-

excl. ASAP Software

LTM EBIT bef special items
12%
88%
Office products
Printing Systems
LTM Sales
89%
11%

Based on LTM figures, excluding ASAP
Software and Davenport Office


LTM sales EUR 5,621 mln


Office Products EUR 5,020 mln


Printing Systems EUR 601 mln



LTM gross contribution EUR 1,839 mln


Office Products EUR 1,651 mln


As % of sales: 32.9%


Printing Systems EUR 188 mln



LTM EBIT* EUR 242 mln


Office Products EUR 213 mln


Includes Corporate (EUR 9 mln)


As % of sales: 4.2%


Printing Systems EUR 29 mln


*Before special items

8

OP Europe


Sales increased 38% at constant rates


Organic growth 5%



In general, market conditions are favourable with


growing employment, solid economic conditions



Strongest sales growth Nordics, UK, France


Facility strong sales growth



Continued strong improvement gross contribution



2007: continued organic sales growth expected and


significantly higher sales and EBIT


Sales improvement


Merchandising

22%
9

OP Australia


Q2 07 sales +9% at constant rates


Generated across its diverse markets


Healthy growth in facility and
breakroom


Contribution Educational Experience



Gross contribution up 12%



In H2 2008 new state
-
of
-
the art distribution


Centre to be opened in New South Wales



Going forward,


Focus on further leverage single
-
source
model


to drive organic growth


Capitalise on acquisition strategy


Strong focus on business efficiency


improvements

15%
10

Printing Systems

For FY 2007 optimistic about continued sales and earnings growth

0
150
300
450
600
1983
1986
1989
1992
1995
1998
2001
2004
2007
Sales
Trend

Q2 07: good quarter with sales +7%



Mainly driven by printing presses



Sold Veenman Germany to Konica



Net sales 2006 EUR 565 mln



Graphic Systems EUR 471 mln


Triple S: 34% of total sales



Veenman Group EUR 94 mln

Sales
83%
17%
Graphics
Veenman
Excl. Veenman Group

11

CXP Analyst and Investor meeting, Denver
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12
-
13 September 2007

North America

LTM sales EUR 3,059 mln

9,862 FTEs

Europe

LTM sales EUR 1,186 mln


3,980 FTEs

Australia & New Zealand

LTM sales EUR 775 mln

2,537 FTEs

Southeast Asia

alliances

Latin America

alliances

Europe

alliances

LTM = Last twelve months

Global Office Products
-

Global Coverage

12

CXP Analyst and Investor meeting, Denver
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12
-
13 September 2007

Global customers

Only player with such capabilities, strong growth



Combined sourcing

Asian sourcing offices, supplier relations, private brands



Exchange best practices

Pick
-
to
-
Voice, eCommerce, Salesforce.com

Product range extension

Private brands

Global Office Products
-

Global Coverage

13

CXP Analyst and Investor meeting, Denver
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12
-
13 September 2007

Products and services

From ‘Office Supplies’ towards ‘Supplies for the Office’

North

America

Europe

-

Office supplies

-

Computer supplies

-

Print & forms management

-

Facility

-

Breakroom

-

Office furniture


-

Customised corporate gifts

-

Educational supplies



-

IT hardware

-

Desktop software

-

Others




















-

-

-















-

-


-

-

-



























Australia

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CXP Analyst and Investor meeting, Denver
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Market Environment

Corporate Express

Office Depot

Office Max

Staples

Lyreco

Regional/

Local Players


Staples

Office Depot

Office Max

Supermarkets


Independent

Retailers


Wide range /

consumables

Next Day Delivery

CONTRACT

DIRECT MAIL

Limited Offering

RETAIL

Physical Presence

Lease obligation


Staples

Office Depot

Office Max

Regional/

Local Players



15

CXP Analyst and Investor meeting, Denver
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12
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13 September 2007

7%
8%
9%
10%
11%
Q1 2003
Q4 2003
Q3 2004
Q2 2005
Q1 2006
Q4 2006
Average working capital as % of sales

4 quarter rolling average

9.7%

16

CXP Analyst and Investor meeting, Denver
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13 September 2007


in EUR mln


Q2 07


LTM


Guidance FY 07

EBIT

54.7

247.1

Depreciation pp&e

20.4

89.2

±

90

Amortisation intangibles

3.1

10.8

±

12

Adjustments for non
-
cash

(0.2)

0.4


Change in inventories

(2.8)

(38.2)


Change in trade receivables

(70.8)

(63.1)


Change in trade payables

106.0

65.8


Change in other receivables/liabilities

(25.3)

2.5

Change in working capital

7.2

(33.1)

Payments for defined benefits plans

(2.5)

(13.2)

±

(10)

Profit tax paid

(8.5)

(30.2)

±

(35)

Other operational payments

(0.5)

(29.2)

Cash Flow operational activities

73.6

241.6

Investments in pp&e and software

(26.1)

(92.7)

±

(100)

Acquisitions, integration, divestments

(1.7)

(279.2)

CF available for financing activities

45.8

(130.2)

Consolidated cash flow statement

17

CXP Analyst and Investor meeting, Denver
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12
-
13 September 2007

Net interest
-
bearing debt


Excl ASAP Software *, in bold

1,160
1,080
1,161
1,143
1,294
1,399
1,120
1,096
1,118
1,308
1,274
1,288
1,451
750
1,000
1,250
1,500
Q1 04
Q2 04
Q3 04
Q4 04
Q1 05
Q2 05
Q3 05
Q4 05
Q1 06
Q2 06
Q3 06
Q4 06
Q1 07
Q2 07
Currency split
13%
48%
39%
US dollar
Euro
Other
Interest split
61%
39%
Fixed
Floating
-

Leverage ratio: 3.7x


3.3x *

-

Interest coverage ratio 4.5x

4.6x *

-

Net interest
-
bearing debt as percentage of


group equity: 98% →
75% *

1,456

1,208

* Assumes ASAP Software divestment per end of June 2007


Proceeds USD 340 mln (
±

EUR 248 mln)

*

18

CXP Analyst and Investor meeting, Denver
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13 September 2007


in EUR mln



Actual

Cash Interest %

Revolver (EUR 255 mln facility)

42

LIBOR +2.50% drawn;
+0.75% undrawn

Term Loans A / D (senior credit facility)

642

EURIBOR +2.50%/2.00%

Convertible (subordinated)

115

2.00%

Equity Adjustment Convertible

(22)

Securitisation

172

LIBOR +0.40% drawn;
+0.28% un
-
drawn

High Yield bonds (USD 300 mln; subordinated)

222

7 7/8%
-
8
¼
% semi annual

Preferences Shares A (nominal value)

181

21 cts/share; EUR 11mln

Other Debt

202

Capitalized financed fees

(21)

Cash

(77)

Interest


Bearing Net Debt

1,456

Funding
(per end of June 2007)

19

Closing remarks

Productivity in your hands


Increased corporate focus on office products via divestment ASAP and
Veenman Germany



OP Europe, OP Australia, Printing systems showing good performance



OP North America to be covered in detail today and tomorrow


---
/
---



Strategic review outcome expected at end of September


No trading update to be expected



Enjoy your 1.5
-
day Corporate Express

Analyst & Investor meeting


20

CXP Analyst and Investor Meeting Denver


12
-
13 September 2007

Productivity in your hands.