ron lalla – evp global merchandising, marketing & margins

CXP Analyst and Investor Meeting Denver – 12-13 September 2007

Ron Lalla – EVP Global Merchandising, Marketing & Margins

Corporate Express US Analyst Meeting Denver – 12-13 September 2007

2CXP 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-lookingstatements made pursuant to the safe harbour provisions of the Private Securities LitigationReform 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.


We are focused on 6 strategies that will create demand, reduce our supply chain costs and connect us to the customer

Com

mun

icat

e m

ore

effe

ctiv

ely

by M

arke

ting

Seg

men

t

Stream

line the

merchandising

financial systems Implement a

best-in-class private label program

Glo

bal s

ourc

ing

Improve the custom

er

shopping experience

Implement the category mgt

business discipline


To accomplish our financial goals, activities can be bucketed into 3 areas

• Creating Demand

• Reducing Cost of Goods Sold

• Working Capital Management


Creating Demand

• Comprehensive understanding of market segmentation• Execution and training on product lines• Sales collateral• Category analysis – product trends and fashions, suppliers and

their competition and issues, customers and their needs and wants, competition (their assortments, GBB tiers, pricing, their private label)

• Product assortment – national brand and private label• Catalog process• Promotional programs• Interaction with field organization• Assistance with bids• Velocity planning – understanding product life cycles and trends

to be used in bids analysis


By developing joint Go To Market plans that focus on meeting customer needs by segment we can drive sales improvements very quickly

Sales Force, Online, Direct Mail

Category Leaders

Pricing

Segment Planning

Go-To-MarketPlans

Customer Needs AssessmentsSyndicated DataVendor StudiesCustomer Sales and Product Analysis

Segment Sales Leaders

Customers

Segment Marketing Leaders


Account Acquired

New Customer

Loyal Customer

We have a great opportunity to further penetrate our loyal customers

Prospect

Day 1Day -30 Day 180+

We will continue to leverage product, sales tools, online, and campaigns to create a better bond with our customers by segment with consideration for customer life cycle

New Customer


Our flagship catalog was changed in 2007 (from traditional method of line listing items) to improve the mix of what we sell. In addition we began presenting our customers with product solutions to meet their needs.

• 2007 Improvements– Increased application shots– Use of “Hero shots” larger images– Reorganized sections to match

how customers shop based on needs

– Rationalized assortments– Added coloring– Merchandised in spreads– Cleaned up copy, got rid of fluff– Better produced shots– Easier to shop


Reducing Cost of Goods Sold

• Preferred vendor agreements - sophisticated RFP/RFQ process, multi-year time frames

• Negotiated tiered pricing

• Supply chain management

• Returns management

• Price increases/decreases management

• Forward buying

• Deviated pricing

• Rebate programs creation and management

• Private label reverse engineering to better negotiate


Working Capital Management

• Vendor receivables

• Terms

• Inventory turns

• Accounts payable


Industry suppliers of our products for resale have recently consolidated

• GBC – ACCO

• Esselte – a private buy out

• Eldon - Dymo - Sanford - Newell Rubbermaid

• Domtar – Weyerhaeuser

• Georgia Pacific – Koch Industries


We are seeing cost increases from various economic factors

• Cut sheet paper cost increases

• China tariff cost increases/reevaluation of RMB

• Higher fuel caused cost increases

• Resin cost increases

• Industrial chemical increases

• Energy increases

Source: Producer Price Index


Allowances and Rebates defined

• Allowance: Deduction from the value of an invoice, permitted by the seller of goods to cover damages or shortages.

• Rebate: Payment made to the purchaser after the purchase is completed to induce the purchase of product.


Types of allowances and rebates

• Volume rebate – Set as a standard % of purchases. The monies are earned regardless of the volume purchased.

• Tiered agreement – The rebate comes attached with a volume condition. When the volume tier is reached the agreement can either kick in on purchases after the tier is reached or can apply to purchases back to dollar one.

• Catalog Placement allowance – A fixed or variable amount that the supplier gives Corporate Express for placement in the catalogs.

• Marketing Development Funds (MDF) – Funding the supplier provides to aid in the marketing of products that Corporate Express sells. In cases where proof of performance is required on the part of Corporate Express the funding must be monitored to make sure it is not lost at the end of a fiscal year.

• Promotional allowance- Negotiated specifically for placement in a promotional vehicle that Corporate Express publishes and distributes.

• Conversion allowance – Monies provided to help Corporate Express transition from one line of products to another. This allowance is frequently negotiated when a supplier gains preferred supplier status.

• Obsolescence allowance – Usually applied to products with a high degree of seasonality (i.e. dated goods).


Assortment DefinitionAssortment Definition

Private LabelPrivate Label BrandedBranded

Global SourcingGlobal Sourcing

Category ManagementCategory Management

Product DevelopmentProduct Development

Sourcing Process


Superior Procurement Solutions Includes a Best-in-Class Private Label

• Compensates for low margin SKU’s

• Exclusive brand will become a valuable corporate asset

• Increases profitability

• Offers the customer value

• Builds customer loyalty

• Competition cannot compete with our private label


Private Label Vision Statement

Corporate Express private label office

products will be the best corporate

owned brand in the office products

industry in the United States.


Corporate Express Brands

PRICE

QUALITY

National Brand

• Started in Europe in 2006 with 150SKU’s / 250 in 2007• Same packaging US/Canada

Started in Europe in 90’s• >2,200 sku’s• Different packaging US/Canada/Europe plans to align

Not used in Europe yet

premium


Pillars to a Successful Private Label Strategy

Product Management• Ensure quality specs• Monitoring raw materials production• Monitoring human rights• Database of manufacturers

SUCCESS

Finance• Maximize financing options• Best legal structure• Purchasing models• EVA models• Best tax structure

IT• System for placing orders• Interfaces in third parties• Robust reporting on all performance metrics

Branding Strategy• What does the brand represent• Staying true to the brand

Logistics Strategy• On-time delivery to warehouse• Efficient supply chain management• Order quarterly• Freight efficiency• Duty• Consolidation of shipments

Human Resources• Managing an overseas operation• Right compensation

Merchandising• Assortment planning• Sales planning• Promotional planning• E-Way• Sales Force• Defectives


Greg Shewmaker– VP Global Sourcing & Product Quality

Corporate Express US Analyst 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-lookingstatements made pursuant to the safe harbour provisions of the Private Securities LitigationReform 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.


Overview

• Began import business in 2003 with exclusive buying agent

• Goal was speed to market for Corporate Express Brands launch

• Buying agent model provided immediate resources in Asia

• Significant growth in export volume from Asia 2003 – 2007

• Next logic step was direct sourcing


Launch of CE Asia

• Incorporated in Q1 2007– Headquartered in Hong Kong with satellite office in

Southern China

• Wholly owned subsidiary of Corporate Express, NV

• Extending Corporate Express global footprint in Asia– Closer links with Suppliers, Partners and Customers in the

Region

• Exclusive business conduit for all Asian supplier relationships


Values

• Building Long-lasting Partnerships with Manufacturers

• Being Best-in-Class in Our Core Competencies of Product Development, Quality Assurance and Supply Chain Management

• Developing Our People

• Being a Global Leader in Social Responsibility


Regional Experience

• Currently 37 Employees; 31 in Hong Kong headquarters and 6 in Shenzhen office

– Each member of senior management team has direct experience setting up multi-national operations in Asia

– Over 1/3 of the staff are engineers that will focus on manufacturing processes, product enhancements and quality assurance

– 2/3 of the staff have direct experience in Office Products industry

– 100% of the staff is multi-lingual(minimum requirement of Mandarin/English capabilities)


Key Success Factors

• Year over year cost of goods reduction

• 98% on-time shipping

• 1% or less defect rate by product category

• Vendor management– Diversification of supply base– Rationalization of suppliers– Factory audits– Scorecards


Partnership

PartnershipInnovationQ

ualit

y

Social Responsibility


Quality means many different things

• Quality of Order– Forecasts– Collaborative Production Planning– Firm management of supply chain

• Product Quality– Detailed specifications to match brand strategy– Raw materials– Quality engineering

• Quality of Relationship


Product Innovation

• Evolving from sourcing solution to development solution

• Collaboration in product design/development and sales/marketing

• Product solution opportunities– Ergonomics– Personal health– Sustainable products


Why Social Responsibility is Essential

• Expected by most customers

• Required by many customers

• Avoidance of adverse publicity

• Right thing to do


Partnership

PartnershipInnovationQ

ualit

y

Social Responsibility


Thank you.

Productivity in your hands.


To be successful in merchandising, we have undertaken a journey to move from a purchasing organization to a category management approach to the business

Monitor

Performance

Market Research

Determine Category

Role

Assortment and service selection

Supplier Selection

Item creation

Market The products

Corporate Strategy


Thank you

ron lalla – evp global merchandising, marketing & margins

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