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Managing a company through turbulent times

Ronald van der Mark - CFO CFO Day 2008: 12 June 2008

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Agenda

1. Success Maxeda 2. Staying focussed

3. Managing through turbulent times

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1. Success Maxeda

“If everything seems under control you’re not going fast

enough” - Mario Andretti

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Maxeda

DIY V&D

Claudia Sträter M&S Hunkemöller

De Bijenkorf

La Place

Schaap en Citroen Key Figures 2007/08 Sales €3,181 mln EBITDA €228 mln Colleagues 18,242 Stores 1,350 Countries 12

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versus Situation Vendex KBB before Buy-out: • Performance under pressure • Negative publicity • Problems with financing • Financial Holding without

added value for the Business Units

• Relatively weak Management • No cooperation between

formats • Worst place to work • Weak MIS

Current situation Maxeda: • Outperforming the Market • Double digit EBITDA growth • Very strong Cash Flow • High Investments • Strong value creation Holding • Strong Management • Strong cooperation between

formats • Best Places to work and high

Employee Satisfaction • Strong MIS • Positive reputation with all

Stakeholders

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Process since Buy-Out in 2004

• Year 1 - Focus on controlling the business and generating cash: – improving governance and reporting – changing the role of the head office and the culture – cost reduction, working capital reduction and divestments

• After year 1 - Focus on driving the business: – right people at the right place, new (international) top management – achieve retail excellence in every format – invest in long term sustainable growth – A Passion to Serve philosophy – great Strategy (5-S’s) and Execution

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We literally created

a new Company!

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Drivers of Success

• Focus – Drive – Alignment • Servant Leadership • Good Strategy and Strong Execution • Focus on Value Creation for all Stakeholders

(Customers, Colleagues, Suppliers, Community and Shareholders)

This is not Rocket Science but proven (Private Equity)

“template”!

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2. Staying focussed

Only the Paranoid Survive!

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Staying sharp and focussed!

• Constant communication to maintain Performance Culture: – “Good is the Enemy of Great” – “Only the fairy tale ends ‘They lived happily ever after’” - Peter

Drucker – Lets not get seduced by success!:

• “Success is a lousy teacher. It seduced smart people into thinking they can’t lose” - Bill Gates

• “If you are very successful you start think you can walk on water” - Dieter Zetsche

• “Nothing recedes like success” - Walter Winchell

• Constant Challenging: – Confront the Brutal Facts (not everything can be positive) – Set new Targets and Goals

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3. Managing through turbulent times

“You cannot change the wind but you are in full control of

your sails …”

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Managing through turbulent times

• Read the Markets constantly

• Adjust your Strategic Planning and Budgeting process: – Be conservative on Sales Growth and Focus on Margin, Costs and Cash – Focus on the things you can control!

• Adjust your business focus (processes and KPI’s) • Make your Cost and Capex commitments flexible

• Create contingency plans • Look at learnings from previous downturns, other markets/areas and

experienced managers

• Prepare for the upturn

Out performance is always Value Creating!

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Final thought

“It is not the strongest of the species that survive,

nor the most intelligent, but the one most responsive

to change”

Charles Darwin

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ronald.van.der.mark@maxeda.com