Supplier Day

Creating a world of difference

Amsterdam28th February 2008

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Welcome

Mark McKeonCEO

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Program

Introduction Mark McKeon - CEO

Trading Fintan Straughan – Commercial Director

V&D and La PlaceStrategic objectives Mark McKeon

Supplier statement Frans Wegter, Wegter

Coffee / Tea

Logistics Strategy Theo Heemskerk, Director Operations & Logistics

Brand Strategy Rudolph van der Kraan – Brands Director

Supplier awards Mark McKeon + Board

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Trading

Fintan StraughanCommercial Director

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V&D and La Place had a great year

in 2007

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La Place

•Sales growth of 13%

•17 New locations

•Recognized as a market leading concept

•1st Location outside of the Netherlands - Antwerp

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V&D non-foods:A year of

strengthening and progress!

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V&D non-food

•Sales growth of 9%• Fashion 14%• Hardgoods 2%

•Market share improvement

•Costs contained at 2% growth

•Ebitda on budget

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What else changed in 2007?

New A-brand partnerships, resulting in 900 new shop-in-shops, including -

Ladies fashion:Cortefeil Jane Norman Witteveen SPSDidi Biba

Mens fashion:S Oliver Selection Springfield

Baby Kids:Coolcat Nijntje Ducky Beau Petrol IndustriesS Oliver kids Vingino

Lingerie:Triumph Sapph After Eden Esprit Benetton

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What else changed in 2007?

Shoes:Esprit Mexx ladies Mexx Mens Intermedium

Fashion Accessories & Jewelery:Accessorize Six I Am AmorFossil

Sports & Luggage:O Neill Carlton Eastpack Reebok

Living:Fair Trade Vossen Amsterdam BlondSealskin Esprit Home

Perfurmes & CosmeticsICI Paris XL

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What else changed in 2007?

•The closure of our own operated sourcing office in Hong Kong based on our desire to focus on better buying and better selling.

•A cleaner stock position

•A shift to full-price retailing

•New assortment planning process and tool

•Some partnerships ended, ie: Mothercare, Tchibo, The ReadShop

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What else changed in 2007

•Space optimization project undertaken

•Allocation capabilities improved

•Replenishment capabilities improved

•Reduced internal lead-times

•A head office Organizational Improvement implemented

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What else will change in 2008?

Entered into new brand partnerships or shop-in-shops, including:

Sephora FilaRituals Soleil du SucrePhase Eight SloggiMexx concessions ImpliciteCortefiel & Springfield concession IndulgeFor Fellows Daniel HechterSamsonite MichaelisCamel Active Ecco ShoesSEQ GeoxShoe Studio TrafficSix for Men Twinlife

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DVD Creating A World of Difference

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V&D and La PlaceStrategic Objectives

Mark McKeon

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Our three year strategy

2007: Focus…

2008: Strengthen…

2009: Broaden…

…on our people, customers and

products

…our capability, processes and execution

…new product areas, routes to market

Sales

Profit

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“We cannot become what we need to be by staying as we are”

Robert Kennedy

There is a need for change

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Our Mission

To again be The Netherlands’ most respected, admired and profitable retailer, known for inspiring products and great service

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Our strategy

To serve our customers through a world class multi-channel (stores, catalogues and e-commerce) offer with a reputation for inspiring and innovative products

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Our business

Multi-channel retail brand

Private label/A-brand mix

Develop the Food services business (in- and outside V&D)

Simplified processes and management information

Improve profitability, cash generation and return on investments

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Our people

Invest in developing our team, their leadership and customer focus

Create a passion to serve

Create opportunities for development, reward and recognition

Ensure clear roles and responsibilities are known

Ensure accountability for delivering

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Our brand

Create a revitalised perception of the V&D brand ‘Creating a World of Difference’

Focus on the V&D and major sub brands (La Place and Soho) in 2007

Deliver a world class CRM programme

Drive increased visitors into stores

Focus on innovation, exclusivity and value

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Our customers

Listen and respond to their demands

Give them great products and value

Don’t let them wait or queue

Create lifetime loyalty Recognise the staff

are great Are inspired by our

stores and can find what they want

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Our stores

Delivering ‘great service’

Inspiring displays and presentation

Identify and replicate stores of excellence

Focus on making ‘our brands’ easy to find

They are structured to focus on customer, service and visual excellence

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To the essence

…by inspiration and good service we satisfy our customer

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Strengthening through

Our Team

Responding to our MTO (Employee Satisfaction Survey) feedback

Our Customer

Building our multi channel strategy with the E-commerce launch in July and a new CRM programme in March

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Strengthening through

Our Stores

Investment in inspiration (Visual Merchandising)Investment in new brand identity (10 to 15 stores)Delivering a Passion to Serve

Our Product

Fast FashionGood Better Best / Vaste lage prijsNew A-brands – SephoraStrengthening private label – Toys/Living

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Our brands

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Our real estate

Doetinchem, 15 November 2007

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Private label development

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Private label development and joined buying opportunities

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E-commerce

The Netherlands is amongst the highest users of e-commerce

Eurostat News Release

“The highest proportions of internet shoppers in 2007 were recorded in

Denmark (55% in 2006)

The Netherlands (55%)

Sweden (53%)

United Kingdom (53%)”

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La Place - brands

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La Place is hot

Award winning concept•“Beste winkelketen van Nederland

2006 and 2007” - in category “food on the go”•“Beste wegrestaurant van Nederland”•Finalist at the 2007 World Retail Awards – in category

“innovative format of the year”

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Strategic vision La Place

To be the

European market leader in

Freshly Prepared Food Restaurants

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Summary

• Our ambition is to become the European leader in freshly prepared food

• We will retain our competitive advantage based on our philosophy: freshly prepared, innovative products for our customers consisting of biological, regional and low-cal ingredients

• Our plan is to grow sales by 71% over the next 3 years

• Over 35 restaurant units will be modernised and 50 new locations developped

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Consumer confidence

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Logistic StrategyFocus on Efficiency & Excellent Execution

Theo HeesmkerkDirector Operations & Logistics

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Agenda

• Last year review

• Current changes within the logistic department

• Logistic Strategy & future developments

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Last year review 2007

Achieved results: Infrastructural changes

• Closing warehouse in Sint-Oedenrode• Integration of activities into other warehouses

Far East Development• Reduction lead time

Process & efficiency improvements• Quality improvement of DC processes• On time delivery and completeness of supplier orders improved• DC lead time shortened

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Timeliness & Delivery performanceAverage Supplier Performance

2006/2007

0%

20%

40%

60%

80%

100%

jan-

06

mrt-0

6

mei-0

6

jul-06

sep-

06

nov-

06

jan-

07

mrt-0

7

mei-0

7

jul-07

sep-

07

nov-

07

Month

Per

form

ance

(%

)

Avg delivery performance

Avg Timeliness

Trend line Timeliness

Trend Line Delivery Perf.

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Reduction of the order problems# Order problems per period

0

100

200

300

400

500

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1

Month

# p

roble

ms

2006 2007

• Reduction of # order problems with 33% in 2 years• 90-95 % of the orders are without any problems!• Continues focus on:

• Not/wrong pre- pricing (24%)• Wrong packing units (20%)• Never ordered articles (16%)• Over deliveries

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Current changes within logistic department

Integrating planning activities into the B&M & integrating customs and Inbound transport into new department “Inbound logistics”

Improving the internal cost structure by using ABC-method for benchmarking & better decision making on logistics activities

EDI connection with suppliers and forwarders

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Our logistic strategy 2010

•Develop a best in class logistics support for non-food with daily replenishment systems

•Develop a backbone for E-commerce

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Logistic strategy 2010

• Investigation on:• Optimizing our current infrastructure• Re-locate to one central warehouse• Outsourcing warehouse & distribution

• Future requirements:• Daily replenishment of NOOS and holdback stock• Shelf ready shipment• E-commerce• A-brand shipments• Fast fashion & lead times• Direct store deliveries

Timing autumn 2008

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Brand strategy

Rudolph van der KraanBrands Director

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Content

• Brand revival plan

• Commercial calendar

• Winter Wonder Warenhuis 2007

• Trends 2008

• Saint Nicolas (Sinterklaas)

• Christmas (Kerst)

• Winter Wonder Warenhuis 2008

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Brand revival plan

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Brand revival plan

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Commercial calendar

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Commercial calendar 2008B

45 46 47 48 49 50 51 52 1Commercial Sunday 2-11 9-11 16-11 23-11 30-11 7-12 14-12 21-12 28-12

Calendar Monday 3-11 10-11 17-11 24-11 1-12 8-12 15-12 22-12 29-122008B Tuesday 4-11 11-11 18-11 25-11 2-12 9-12 16-12 23-12 30-12

Wednesday 5-11 12-11 19-11 26-11 3-12 10-12 17-12 24-12 31-12Thursday 6-11 13-11 20-11 27-11 4-12 11-12 18-12 25-12 1-1

Friday 7-11 14-11 21-11 28-11 5-12 12-12 19-12 26-12 2-1Saturday 8-11 15-11 22-11 29-11 6-12 13-12 20-12 27-12 3-1

Winter Wonder WarenhuisSaint NicolasChristmas

Period 10 Period 11

“The Golden Quarter”

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Winter Wonder Warenhuis 2007

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Trends 2008

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Saint Nicolas (Sinterklaas)

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Christmas (Kerst)

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Winter Wonder Warenhuis 2008

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Winter Wonder Warenhuis 2008

Brochures:• Increase circulation from 3.6 to 4.6 million• Including “Pietjes Plakken” for Saint Nicolas• 80 pages• Opportunities for adverts

TV commercials:• Saint Nicolas commercial “To smart for his age”• Christmas commercial “Hide and seek”

Special promotions:• Promotions with VIP card • Margriet Winter Fair

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Winter Wonder Warenhuis

Brand contribution:

1. Looking for funding to increase circulation of the brochures and commercials

2. Looking for participation for adverts in the brochures and TV commercials

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Supplier awards

Best Performing A brand

Best Performing Private label

Best Supplier Performance

Best Partner