Brammer Invend TM > Convenience & simplicity > Reduce consumption > Lower inventory costs > Improve productivity 28 th July 2015
Agenda • What is Invend™? • Benefits for Brammer’s customers • Benefits for Brammer • Progress to date • Brammer Invend™ for Key Accounts • Brammer Invend™ Infrastructure • Financial model • Brammer’s competitive advantage 2
What is Invend™?
What is Brammer Invend™? A fully managed industrial vending service that reduces consumption of fast moving industrial products, lowers inventory costs & improves productivity Fully managed service: No up-front investment: Easy installation and Provides control over We handle everything No need for the customer operation: usage and access: from installation to re- to invest in machines & All the customer needs to Gives the customer real- stocking software, he only pays for get started is an internet time visibility and control of the products used plus a connection and power end user and cost centre monthly software/data supply usage management fee 4
How It Works: Machine set-up and installation 01 We help the customer to We help the customer select the right lines from our Invend™ product range and agree stock levels select product lines & agree stock levels then manage machine delivery, installation 02 We configure the machine to suit the chosen products & training 03 We deliver and install the machine 04 We show the customer how to set-up and manage end users 5
How It Works: Restocking and reporting End users enter their unique code using a keypad or End users have convenient 01 scanning a barcode label – if authorised, the required and controlled access to product is dispensed products whilst an automated process allows 02 An automated process means we know when the stock us to replenish items when in the machine is running low required 03 Our local branch restocks the machine & invoices for the items the customer has used 04 Invend™ provides the customer with a range of reports to keep him in control of usage 6
Brammer Invend™: Product choice Invend™ can stock a broad range of fast moving industrial consumables: over 30,000 certified vendable products 01 02 03 04 05 06 07 08 7
Invend™ Machine Overview Invend TM Coil Ideal for hand tools, cutting tools, abrasives, adhesives & PPE items such as gloves and safety glasses 1 > Manage up to 60 individual products > Easy to use touch screen interface & bar code Scanner > High levels of control over item issues > Visibility of products through glass front Invend TM Carousel Ideal for a wide range of industrial consumables such as hand tools, cutting tools, abrasives, adhesives & PPE such as gloves, glasses & ear protection 2 > Manage up to 560 individual products > Flexibility to carry a wide range within small footprint > Easy to use touch screen user interface > High levels of control over item issues Invend TM Locker Suitable for large items or bulk issues of expendable items such as lubricants and boxed gloves 3 > Operates in combination with the Invend TM Coil or Carousel > Manage up to 12 individual products > Visibility of products through glass front 8
Invend™ Technology Ethernet Firewall Customer Firewall Internet TM Invend Invend TM Server Machine Port 80 & 443 9
Benefits for Brammer’s customers
Why Brammer Invend™? Invend™ Reduced product Health and Safety consumption. By controlling Compliance. The offers: the use of fast-moving customer knows what industrial consumables, a has been vended customer can typically cut when, and to whom. spend by 25 to 40% Reduced replenishment Lower inventory costs, greater efficiency, costs and simplified and improved productivity. The customer processes. We handle re- only pays for the items he uses, removing the need to carry the cost of inventory. Products are stocking, saving the available when and where the customer needs customer money and them, allowing the customer’s staff to use time reducing wasted staff time productively, instead of visiting stores to restock 11
Who Benefits? 24/7 availability across the customer’s business Purchasing Production and Stores Health and Safety Maintenance • Reduces consumable • Improves control and • Saves wasted staff time • Only approved PPE MRO usage by 25-40% availability of required by removing the need to equipment is available • Reduces suppliers and products order, replenish and on the shop floor • Reduces wasted walk • Audit trail of issued raise paper work for fast total cost of ownership moving MRO items • Improves usage and waiting time health and safety items associated with visits to reporting by user and stores cost centre 12
Benefits for Customers 13
Benefits for Brammer
Invend™ Direct and Indirect Growth Invend™ generates DIRECT GROWTH 1. – Direct growth is the revenue generated through the machine – Almost all of the business transacted through the machine is new business to Brammer – Mainly PPE and TGM: NOT cannibalising existing business Invend™ generates INDIRECT GROWTH 2. – Through better customer engagement and visibility the customer sites with Invend™ machines grow faster than the rest of the business – Indirect growth is the additional revenue attributable to the Invend™ presence at customer site outside of the vending machine – Indirect growth is across ALL product ranges 15
Indirect Growth • In selling Invend™ we have engaged with: – Health and Safety Managers – Purchasing Managers – Production Managers – Maintenance Managers – Factory Managers • Multiple critical customer collisions during pre-sales process • Post- installation, Brammer is “front of mind” through: – Invend™ machines are a very visible Brammer presence on the customer site – Direct access to customer site for replenishers – we are a trusted part of the customer’s supply chain 16
Comparison of Product Mix – H1 2015 vs H1 2014 like for like sales across 317 sites YTD J UNE INVE ND C US TOME R TOTAL S AL E S 2014 2015 GR OWTH GR OWTH % MIX BE AR ING S 1,550 1,849 299 19.3% 8.3% L INE AR MOTION 310 326 16 5.1% 1.5% YTD J UNE DIR E C T S AL E S MIX POWE R TR ANS MIS S ION 3,823 3,884 60 1.6% 17.4% TG M 85% FL UID POWE R 4,424 4,945 521 11.8% 22.1% C HE MIC AL S 8% C HE MIC AL S 685 998 313 45.8% 4.5% OTHE R S 7% FAS TE NE R S 379 414 35 9.2% 1.8% 100% TG M 3,384 6,382 2,998 88.6% 28.5% S E AL S 962 1,102 139 14.5% 4.9% S E R VIC E S 438 600 163 37.1% 2.7% OTHE R S 1,223 1,865 643 52.6% 8.3% 17,178 22,366 5,188 30.2% 100.0% • We sell more of ALL product groups to customer sites with vending machines All values in € 000s 17
Progress To Date
Cumulative Number of Machines Signed in Agreements 1000 1200 1400 200 400 600 800 • Agreements have now been signed for 1,206 machines 0 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 19 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15
Updates – Quarter on Quarter Q1 Q2 Q3 Q4 igned 2015 Machines S 237 304 2014 111 97 110 188 2013 11 34 28 86 Q1 Q2 Q3 Q4 Machine Installations 2015 172 194 2014 65 104 105 135 2013 1 13 30 71 Q1 Q2 Q3 Q4 ive 2015 Machines L 658 845 2014 178 278 370 501 2013 1 14 44 115 20
Updates – Quarter on Quarter Q1 Q2 Q3 Q4 T otal Account S ales 2015 10,370,694 11,995,246 for sites with vending machines 2014 3,092,425 4,756,445 6,708,560 8,237,585 2013 8,766 134,608 615,162 819,711 Q1 Q2 Q3 Q4 ate 2015 Invend G rowth R 37.2% 24.7% 2014 74.0% 47.5% 62.1% 48.4% 2013 - 243.2% 35.9% 106.5% Q2 two days shorter than Q1 All values in € uros 21
Invend™ Update - June YTD • Signed 136 machines in June Total • 541 • 1,206 • Installed 74 machines in June • 366 • Live machines 845 • Pipeline of 316 machines to install • 117 people directly involved in Invend TM 22
Key Accounts vs Regional Accounts (2015 June YTD) Regional Base Business Key Accounts Number Customers 161 83 Number of sites 168 149 Number of Machines end Q2 378 439* Number of machines end Q1 295 336* Average Machines per site 2.3 3.0 H1 2015 a/c Growth 63% 24% € 4,595k € 17,771k H1 Account Sales *Excludes 28 machines at Alcoa in the Nordic region. Related sales numbers also excluded for consistency. 23
Brammer Invend™ for Key Accounts
Invend™ and the Brammer Value Proposition Brammer has a unique cost savings program that helps you save money Three key focus areas 01 02 03 Reduce your total Improve your Reduce your acquisition costs production efficiency working capital Reduced Consumption Walk and wait time saving Stock owned by Brammer until Completely automated 24/7/365 availability dispensing process All saving definitions and calculation methodologies are captured and agreed in a cost saving overview document 25
Invend™ saves costs for our customers • 74 Cost Savings already logged • 22 Cost Savings forms signed off by customers for a total value of € 175 k 26
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