Managing Director Daniel Ropers Bernstein E-commerce Conference - June 12, 2015
Daniel Ropers • Managing Director bol.com • Wrote bol.com business plan in 1998 • Managing Director since 2000 “We are at the most exciting place in these exciting times. E-commerce is still in the infant stages of its impact on consumers and the value chain. It’s a privilege to be part of this revolution” 2
16 years of history in 60 seconds 1998: March 1999: 2004: Since 2013: Started in a port-a-cabin in Bol.com NL launched Growth continued and Fastest growth in the back yard of Bertelsmann Book its store bol.com became profitable company history club ECI 1998-1999: 2001-2003: 2012: Bol.com as part of Bertelsmann’s • The bubble burst In May 2012, Dutch retail giant Ahold acquired • ambition to create the preeminent Bol.com sold by Bertelsmann to three bol.com to bolster its ambition in e-commerce German investors in ’03 global online media store and non-food 3
From online bookstore to online super store 30 Categories 25 20 15 10 5 0 1999 2004 2009 2015 Books Music Film English Games & Consumer Computer 2 nd hand Toys 2 nd hand Small & Baby Pets Jewelry & Bags & books Software Electronics books media Major watches Access. Domestic Mobile Digital Cooking Gardening Appliances phones books & Dining Baby & Toddler DIY apparel Health & Beauty Living Sports apparel Int. Books Sports & Leisure 4
The clear leader in the BNL online retail space Key competitors: 680M revenues Customers* Products* Revenues* 5 million active customers Wehkamp 1 1.5 M 180 K 450 M 800,000 visits per day 9 million products on offer Zalando 2 1 M 150 K 350 M 70,000 products ordered and shipped daily Coolblue 3 0.8 M 100 K 350 M Conversion rate >5% (industry average 1-2%) Amazon 0.5 M 20 M 50 M * Estimates 1 Wehkamp: Apparel, Living, General Merchandise 2 Zalando: Apparel, Shoes, Sports / Outdoor 3 Coolblue: Electronics & Domestic Appliances, General Merchandise 5
An unrivalled proposition for BNL customers… Largest assortment Uniquely personalized shopping experience 9.000.000 available items Trusted payment relation using open invoice payment Fast and free of charge delivery through to complement standard online payment methods numerous channels 6
…with proven scalability and high efficiency … Nine million prices Fulfilment combines high Highly efficient Acclaimed reviewed several quality with low costs stock management customer service times a day 7
…leading to a strong brand with a loyal customer base Brand awareness Strongest retail brands 2 Top marks customer for satisfaction No. 1 brand associated with 1. bol.com shopping online in NL and BE 2. Albert Heijn 3. Kruidvat >75% >95% Indispensable Dutch brands 1 Top 100 most trusted Dutch brands 3 1. Hema 1. Albert Heijn 2. bol.com 2. Philips 3. Kruidvat 3. Google 4. Albert Heijn 4. bol.com 6. Google 5. Samsung 20.Facebook 1 Eurib (European Institute for Brand Management) 2014 2 Retailmerken onderzoek 2015 3 IPSOS Brand Monitor 2013 8
In E-commerce, big is beautiful, which is why the big get bigger and better 100+ nicheplayers “ Also – ran’s” Awareness preference Sales growth satisfaction Scale, knowledge, brand Lower prices Economies New of scale services Market leader Better service …the fat cats win Internationally, the market leans towards a natural monopoly, … 9
Retail is changing: From doing it all yourself to a network of partners Retail today Retail tomorrow: A network of partners A B C Presence Knowledge of assortment on offer Knowledge of customer Pricing Ability to supply assortment Fulfilment / Delivery Payment Service 10
In this network, we see two types of players Network Orchestrators Individual players in the network vs. 11
Five million customers who all want an easy, inspirational and personal online experience 12
Real-time inspiration through a sophisticated platform …real -time suggestions on Viewing this product, leads to … other products during this customer’s visit 13
Developing bol.com into the best place to sell in NL & Flanders Unrivalled customer offer CUSTOME Partner: Customer: R: Best place Best place to Full- to sell Unbeatable buy service Best place shopping third party experience ecosystem to buy > € 100 mln third-party revenues in 2014 14
Creating a superior marketing channel Depth Communication at point of interest Personalizing Specially selected for you: … but also to reap the benefits from offering the most efficient Investing in order to merchandise in an even more personalized, relevance- and knowledge-rich, and spot-on way marketing and sales platform our partners have ever had 15
Helping our partners tell their stories in turn creates happy customers “ Fantastic lamps with great functionality! I recommend this product ... “ 16
From online retailer in books to the creation of the leading ecommerce network Evolution of bol.com’s addressable market Expanding along two axes 1. Expansion into new markets From bookstore to media (1999-2009) Marketing & media Fast category expansion (since 2010) value Expansion into Belgium (2011) 2017 2. Broadening our business model Market place margin Classical retail model (since 1999) Marketplace model (since 2011) 2014 2010 Marketing & Media platform (since 2014) Retail margin Growth and margin potential exponentially grown: NL addressable market x 6 Product markets and geographies 17
Our lead is increasing fast and the best is yet to come Average top-line growth (%, last 5 years) 22% • Ahold Online sales ¹ ambition 2017 of € 2.5 bln • Incremental investments in 9% growth of € 60 mln in 2015-2017 for Ahold Online, primarily at bol.com Total non-food online market in NL ¹ Estimated consumer sales for bol.com, ah.nl and Peapod includes third party sales (i.e. Plaza sales) 18
Our biggest challenge: Scaling up as soon as possible without losing efficiency STAY ANGRY 19
THANK YOU!
Cautionary notice This presentation includes forward-looking statements, which do not refer to historical facts but refer to expectations based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those included in such statements. These forward-looking statements include, but are not limited to, statements as to growth, new businesses, proposition awareness, improvement of stores and development, rollout of marketing and media services and further leverage cooperation with Ahold. These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond Ahold’s ability to control or estimate precisely, such as the effect of general economic or political conditions, fluctuations in exchange rates or interest rates, increases or changes in competition, Ahold’s ability to implement and complete successfully its plans and strategies, the benefits from and resources generated by Ahold’s plans and strategies being less than or different from those anticipated, changes in Ahold’s liquidity needs, the actions of competitors and third parties and other factors discussed in Ahold’s disclosures. The audience is cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Koninklijke Ahold N.V. does not assume any obligation to update any public information or forward-looking statements in this presentation to reflect subsequent events or circumstances, except as may be required by law. Outside the Netherlands, Koninklijke Ahold N.V., being its registered name, presents itself under the name of “Royal Ahold ” or simply “ Ahold ”. 21
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