leaders in business services and distribution
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Buhrmann Annual General Meeting of Shareholders. Leaders in business services and distribution. Amsterdam, Thursday 12 April 2007. “Safe Harbour” Statement under the Private Securities Litigation Reform Act of 1995. - PowerPoint PPT PresentationTRANSCRIPT
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Leaders in business services and distribution
Buhrmann Annual General Meeting of Shareholders
Amsterdam, Thursday 12 April 2007
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“Safe Harbour” Statementunder 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 Buhrmann 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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Agenda
Key figures and developments 2006
Strategic initiatives
Overview business segments
Corporate responsibility
Proposed name change to Corporate Express NV
Closing remarks
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Sales
50%
17%12%
13%
8%
Key figures 2006
Sales € 6,306 mln (+7.1%)
Constant rates +7.6%
Organic growth 6%
Gross contribution € 1,884 mln (+6.1%)
Constant rates +6.5%
EBIT* € 291 mln (+15.2%)
Constant rates +15.6% * before special items
EPS € 0.68 (2005 € 0.01)
EPS - before special items / fair value changes –
€ 0.82 (2005 € 0.70)
Dividend per share € 0.21 (2005 € 0.17)
EBITbefore special items
7%20%
10%
7%56%
OP North America OP EuropeOP Australia ASAP SoftwareGraphic Systems
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Global Office Products - Global CoverageGlobal Office Products - Global Coverage
North America2006 sales € 3,182 mln
10,015 FTEs
Europe
2006 sales € 1,096 mln 4,380 FTEs
Australia & New Zealand
2006 sales € 744 mln2,524 FTEs
Southeast Asiaalliances
ASAP Software
2006 sales € 813 mln603 FTEs
Latin Americaalliances
Europeanalliances
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Developments 2006
Sales, gross contribution and earnings all improved
18% EPS growth to € 0.82 (2005 € 0.70)
Before special items and fair value changes
Significant steps taken to streamline Company
North America: New organisation structure, centralised back office functions
Europe: centralised merchandising, started modernising IT
Australia: More centralised, functional structure
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Developments 2006 - (cont’d)
Several important acquisitions, such as
ATG (Nordics)
Coastwide Lab. (USA)
Educational Experience (Australia)
New target Global Office Products per 2007:
EBITDA* range 7% - 8%
Full year 2006: 6.6%
We expect to operate within target range per end of 2008 on a run-rate basis
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Drivers of value creationDelivering profitable sales growth
Leadership in large account segment
- Product range extension
- Strengthen mid-market presence
- Private brands programme
- Preferred suppliers and global merchandising
- Operational excellence
- Cost control
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Office Products North America
Level 1
Level 2 Level 3
4% organic growth in 2006
Product range extension, strong growth facility products
Market share gains
General market conditions remained healthy
Year of considerable change
Streamlining operations, creating customer-focused, sales-driven organisation; centralising customer care
Q4 performance impacted by internal focus
Lower new business generation
Q1 organic sales growth to stabilise around Q4 2006, recovery later in 2007
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Office Products Europe
2006 showed 5% organic growth
Market share gains
Product range extension
Clear signs of improving markets
Acquisition of Andvord Tybring Gjedde (ATG), the leading Nordic player
Centralising of merchandising, realising margin benefits
2007 significantly higher sales and operating results, due to ATG; sales growth; merchandising
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Office Products Australia
Sales growth 8%, at constant rates, organic growth 3%
2006 year of change, focus on maximising internal efficiency
Several add-on acquisitions, like Educational Experience
Single source supplier concept
48% of sales is non-office products
2 new lines of business added: educational supplies and safety supplies
Solid performance expected for 2007
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ASAP Software
Organic sales growth +10%
2006 year of investment:
SME expertise / sales force
IT asset management (eSmart)
International expansion
Introduction Microsoft Vista and Office
Gradual adoption expected, greatest impact longer-term
For 2007, continued strong organic sales growth expected, operating profit around 2006 level
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Printing Systems (pvs Graphic Systems)
2006 successful year
Sales +12% to € 471 mln
Machinery +13%
Triple S representing 34% of total sales
Order intake continues to show upward trend
Healthy market conditions
For 2007, optimistic about continued sales and earnings growth
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Corporate responsibility
High priority to stand by our responsibilities as a company
Management Charter (incl. clear Code of Ethics)
GRI reporting: progressively expanding
ISO 9001 (Quality mgt systems) app. 90% ISO 14001 (Environmental mgt systems) < 10%
Supplier Social Compliance Policy
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To become Corporate Express NV
Vast majority of our business conducted under Corporate Express name
Increases company recognition worldwide
Reinforces our identity with all stakeholders
Corporate Express branded products: sales > € 1 bln
If approved today, Buhrmann NV to become Corporate Express NV per Friday 20 April
Website: www.cexpgroup.com
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Closing remarks
In 2006 significant steps taken to further streamline our businesses
OP North America posted 1% organic decline in Q4
Q1 organic sales growth to stabilise around Q4 levels, recovery later in the year
Quality of operations (e.g. logistics, eCommerce) is high
We continue to invest in people, our main asset
Focus is and will be on profitable sales growth
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Leaders in business services and distribution
Buhrmann is one of the world’s leading Buhrmann is one of the world’s leading suppliers of office products to suppliers of office products to businesses and institutionsbusinesses and institutions