Annual Review 2013


Annual Review 2013
Maxeda DIY Group 2013/14 Annual Review
growth in a
6 Foreword
Our strategic projects resulted in
annual sales of over EUR 1.3 billion,
delivering an EBITDA of more than
EUR 100 million.
Building a
Better World
Key Figures
Consolidated full year figures (February 2013 - January 2014)
from continuing activities
Number of stores
Net sales1
Million Euros
Operating EBITDA1
Million Euros
Average number FTE
Working Capital
Million Euros
Gross investments
fixed assets
Million Euros
2 • Maxeda DIY Group 2013/14 Annual Review
& Review
52 weeks
Normalised, following Deloitte review.
Our Results
in Key Figures
Maxeda DIY Group in Brief
Financial Highlights 2013/14
1 mill
Custo ion +
per wmers
about our company
axeda DIY Group – a leader in the
Benelux DIY market
DIY stores
2006The year in which we
became Maxeda DIY
2011Maxeda becomes a pure DIY retailer as
Maxeda DIY Group
Financial Highlights
Maxeda DIY Group is the largest DIY retailer in the Benelux by space.
In 2013/14 Maxeda DIY Group delivered resilient results
• Sales DIY market NL -4.6%*, Maxeda DIY Group NL -1.8%*
• Sales DIY market BE +1.4%*, Maxeda DIY Group BE +1.8%*
• Net sales of EUR 1,311 million
• Operating EBITDA of EUR 101 million
Maxeda DIY Group invested EUR 24 million in 2013/14
• Investment in new ranges, own brands, efficient supply chain
and store refurbishment
• Praxis opened a new store in Noordwijk
• Brico opened three new stores (Bilzen, Geel and Morlanwez)
and one Brico City store in Leuven
• Formido opened five stores (Hoofddorp, St. Michielsgestel,
Zevenaar, Haren and Beek en Donk)
• During the year, 25 stores were refurbished
7,000Maxeda DIY Group employs nearly
7,000 people
1 million + Customers per week
4 • Maxeda DIY Group 2013/14 Annual Review
Roel van Neerbos,
Chief Executive Officer
Welcome to our 2013/14 annual review.
Last year we continued to execute our strategic
growth plans. We achieved solid results in
challenging markets.
In the Netherlands, the DIY market continued
to be depressed. However, we managed to
outperform the market in 2013/14. In Belgium,
the market conditions were more favourable and
we further strengthened our strategic position
as the outright market leader.
We continued to roll out the strategic projects
we launched in prior years:
• we further improved our product portfolio
through range reviews
• we increased the share of our own brands
• we increased the share of direct sourcing
from Asia through our Shanghai office
• we upgraded and remodeled more than 25
• we opened 10 new stores
• we further rolled out our multichannel activities
• we controlled costs through further synergising
6 • Maxeda DIY Group 2013/14 Annual Review
• we optimised our Supply Chain and our
distribution center in Willebroek
This resulted in annual sales of over EUR 1.3
billion, delivering an EBITDA of more than EUR
100 million.
Our business in all markets and formulas is in
a better shape now than it was a year ago.
We are well positioned to take the next steps
towards an even stronger growth trajectory in
the years to come.
I would like to thank all our people and partners
for their commitment, creativity and drive
towards an even stronger Maxeda DIY Group.
Finally, in May 2014, Maxeda DIY Group
announced its Executive Board and Supervisory
Board have initiated a strategic review of its
business comprising Brico, Plan-It, Praxis and
Formido, which may result in a sale.
Roel van Neerbos
CEO Maxeda DIY Group
About Maxeda DIY Group
Maxeda DIY Group is a market leading DIY retailer and operates 376 stores
across the Benelux with 7,000 employees. We have 55 stores which are
larger than 5,000 square meters. Of these, 12 operate as Brico Plan-It stores
(11 in Belgium and 1 in the Netherlands*) and 31 as Praxis Megastores.
The majority of our stores are between 3,000 and 5,000 square meters,
operating as Praxis in the Netherlands (140 stores), and Brico in Belgium and
Luxembourg (143 stores). We also have a smaller store format, Formido,
in the Netherlands. Of the 81 Formido stores, 65 are franchised.
Our mission is to help and inspire people in the
Benelux to create the home of their desires. We
want to help and inspire people to maintain,
enjoy, decorate, renovate and construct their
homes. Our vision is to do that as an integrated,
modern, market leader with four formats.
Our formats are customer focused,
concentrating on market positioning and
customer experience.
Maxeda DIY Group is a retailer of leading
brands in home improvement, some of which we
own ourselves. There is a continued focus on
improving product ranges and our own brands
through better sourcing.
8 • Maxeda DIY Group 2013/14 Annual Review
Our office in Shanghai, with experts in Sourcing,
Quality Assurance and Supply Chain, plays an
important role in this. Our own brands offer
outstanding value for money, with great quality
assured through independent testing and our
quality assurance team.
In the past year, Maxeda DIY Group has
refurbished 25 stores and opened 10 new
stores: 4 Brico stores, 5 Formido stores and
1 Praxis store.
* In February 2014 our Plan-It Megastore in Eindhoven was
transformed into a Praxis Megastore and garden center.
10 • Maxeda DIY Group 2013/14 Annual Review
Our Stores
Belgium and
Brico, which is the DIY market leader in Belgium,
offers a wide range of DIY, home decoration
and gardening products, combining known
brands with own brands. As a result of ongoing
expansion, Brico today has a network of 143
stores, including 98 franchise stores. Brico
operates Brico, Brico City and Briko Depot
stores. The average floor space is over 2,500
12 • Maxeda DIY Group 2013/14 Annual Review
square meters. Brico continues to develop
its product ranges, its own brands and retail
formats. Brico opened 3 new stores (Bilzen,
Geel, Morlanwelz) and opened a new Brico
City store in Leuven. Brico refurbished 6 stores
(Merksem, Sint Pieters Leeuw, Jemeppe-surSambre, Gembloux, Jemappes, Jodoigne).
14 • Maxeda DIY Group 2013/14 Annual Review
Our Stores
Belgium and
the Netherlands
Brico Plan-It
Brico Plan-It is a chain of 12 stores, with 11
Brico Plan-It DIY Megastores in Belgium and
1 Plan-It by Praxis in the Netherlands*. Brico
Plan-It offers the widest possible range of
products for home improvement projects, from
building materials to home decoration and
garden products. Brico Plan-It has large stores
16 • Maxeda DIY Group 2013/14 Annual Review
– the average floor space is 9,000 square
meters; the stores offer a range of more than
40,000 products.
* In February 2014 our Plan-It Megastore in Eindhoven was
transformed into a Praxis Megastore and garden center.
18 • Maxeda DIY Group 2013/14 Annual Review
Our Stores
the Netherlands
Praxis is a leading DIY brand in the Netherlands.
Praxis meets the needs of both experienced and
new DIY enthusiasts, offering the best choice of
products and prices. Praxis offers millions of
customers over 35,000 DIY articles. Praxis has
a total of 140 stores, including 31 Megastores.
The average floor space is 4,000 square meters.
Praxis also has garden centers in 10 of its
20 • Maxeda DIY Group 2013/14 Annual Review
Megastores. Praxis opened one new store
in Noordwijk and refurbished 16 stores
(Leeuwarden De Centrale, Gorinchem, Lelystad
Palazzo, Doetinchem, Rotterdam Stadionweg,
Amsterdam Anthony Fokkerweg, Emmen
Nijbracht, Venray, Nijmegen Dukenburg,
Heerhugowaard, Helmond, Monster, Amersfoort
Amsterdamseweg, Veghel and Hoogezand).
22 • Maxeda DIY Group 2013/14 Annual Review
Our Stores
the Netherlands
Formido is a chain of smaller DIY stores that
supply the local needs of DIY enthusiasts in
the Netherlands. The average floor space is
2,200 square meters. The 81 Formido stores are
mainly franchised (65 stores) and located in
the suburbs of larger cities and towns. Formido
24 • Maxeda DIY Group 2013/14 Annual Review
operates the successful Deco DIY store concept.
Formido opened 5 stores (Hoofddorp,
St. Michielsgestel, Zevenaar, Haren and Beek
en Donk) and refurbished 3 stores (Nijkerk,
IJsselstein and Zeewolde).
26 • Maxeda DIY Group 2013/14 Annual Review
Successful brands make an emotional connection
with customers. They invoke loyalty, credibility and
trust. Building and managing our own brands is a
fundamental element of our business strategy. Own
brands help to differentiate us from our competitors,
offer great value and quality, and are a true alternative
to mainstream brands. Our brands give an answer to
different consumer needs and wallets. Own brands
give our customers clear and compelling reasons to
shop with us and can make us proud of who we are
as a business, today and in the future.
28 • Maxeda DIY Group 2013/14 Annual Review
Our Brands
The ultimate choice
Your garden professional Experts in water
Power tools
Perfection is a range of paint
products specially selected by
paint experts. It distinguishes
itself with its premium quality
and ensures a professional
end result. Perfection paint is
applied as a single coat and
bears the ECO label. This
label means that the paint
contains fewer solvents, such
that Perfection is better for
the environment and better for
you. The wall and ceiling paints
of Perfection have also been
chosen by Dutch customers as
Product of the Year 2013 in the
category of Coatings.
Acker was especially
developed for the higher
market segment, with electric
garden tools such as lawn
mowers, irrigation products
and hedge trimmers.
We introduced power tools
of Worx in June 2012. Worx
has tools that are suitable for
bigger jobs or intensive use
by enthusiastic handymen
and anyone who wants a
professionally finished project.
30 • Maxeda DIY Group 2013/14 Annual Review
With Aquazuro you gain an
expert in your bathroom that
transforms every bathroom into
a stylish and luxurious space.
The design of the sanitary
products is unique and based
on the latest trends allowing
you to create a bathroom
that is all yours. In addition to
design, Aquazuro pays much
attention to quality. All products
are of top quality according to
the latest innovations.
Practical solutions
for every DIY job
Whether everyday tasks or
major jobs in and around the
home, everyone is always
on the lookout for the most
practical solutions. Hence
Sencys supplies products
that do their job and are easy
to use for both experienced
and inexperienced DIY’ers.
Quality is also of paramount
importance to Sencys. From
hand tools to doorknobs, glue
or paint; all Sencys products
are made according to high
quality requirements, so that
every DIY job can be done
easily and quickly.
Quality in wellbeing
With good quality and
competitive priced products,
everyone can create a
comfortable bathroom for the
whole family.
Our Brands
Central Park
Enjoy your garden
Brighter living
Powered by tradition
Getting the job done!
Everyday low price
Power tools
Whether customers need
electric garden tools or garden
furniture, Central Park always
offers plenty of choice in
A-brand quality at significant
'greener' prices.
DecoMode always has an
inspiring choice to help design
any home in the owner’s own
style, with familiar colors or
the latest decorative trends.
DecoMode introduced
colourful ranges of high quality
paints and wallpapers.
Rockwell, our power tool
brand in the Better category,
was launched in June 2012.
Whether our customers
need to sand, saw, melt or
cut, Rockwell offers them a
complete range of professional
and reliable power tools that
make realising all tasks in and
around the house easy.
MXpower is a brand of
industrial electric tools such
as workbenches, lathing
machines, circular saws and
related accessories. The
products are of reliable quality
and look stylish.
Baseline offers customers a
broad range of DIY tools of
good quality at the lowest
prices, such as paint, hand
tools and accessories.
In June 2012 we launched
Xceed, a suitable and easy to
use brand of power tools for
the less experienced DIY’er.
32 • Maxeda DIY Group 2013/14 Annual Review
Maxeda has always had a passion to serve. Since the
market is changing, customers’ needs change and
therefore also DIY is changing. During last year Maxeda
DIY Group and its formats more than ever strategically
focused on improving the customer journey; customer
service, convenience and inspiration both through
increased expertise inside our stores as well as extra
services outside the stores. A new DIY perspective was
born ready to grow further within the modern retail
business; an overview in 2013/14 service highlights.
34 • Maxeda DIY Group 2013/14 Annual Review
Our Services
Bestel nu ook
online op
Snel en eenvoudig meer dan 3000
doe-het-zelf artikelen online bestellen!
Klik &
Haal Af
Our customers can find tips
& tricks, inspiration, videos,
discounts and product
information through several
different online channels such
as our commercial websites
and social media including
YouTube, Twitter, Pinterest and
Facebook. Our formats have
a collective 75,000 fans on
Klik & Haal Af was launched in
January 2013 with Praxis being
the first DIY chain offering this
service in the Netherlands.
Customers can check stock
online, compare prices and
reserve products to collect
later in store. The first year
of Klik & Haal Af was a huge
success. Praxis’ online sales
are comparable to that of a
Praxis Megastore.
36 • Maxeda DIY Group 2013/14 Annual Review
Reserveer & Haal af
uit de folder herken
je aan dit logo:
Thuis bezorgen
Scherpe prijzen
Huis. Thuis. Formido.
Veilig betalen
Formido was the first DIY store
in the Netherlands able to fully
serve its customers online, 24
hours a day, 7 days a week.
Customers can choose whether
they prefer to collect their
purchases in store or have
them delivered at their homes.
Multichannel is yet to be rolled
out for our Belgian formats in
2014, yet customers of Brico
and Brico Plan-It are already
able to have their products
from store delivered at their
homes within 48 hours.
delivery service
In the end of 2013 Maxeda DIY
Group started its collaboration
with Hertz in order to offer
customers one hour minivan
rental enabling them to
purchase larger or more
products. Praxis launched a
six month pilot at its stores
in Breda and Amsterdam
Zuidoost, Brico and Brico
Plan-It offer the service in
Antwerp, Anderlecht, Vilvoorde
and Merksem resulting in first
positive experiences from
Nothing worse than coming
home and find a message on
your doorstep from a package
delivery service you were not
home at the time of delivery.
Formido’s customers can have
all their packages delivered
at the store and pick it up at a
desired day and time. From the
day of delivery customers have
three weeks time to collect.
There are plenty of customers
interested in the offer of DIY
stores, but many of them don’t
have time to perform the job
themselves. Therefore many of
Formido’s entrepreneurs have
been working together with
local experts to fix the jobs. In
the past year Formido ensured
that all stores are able to offer
these services. In collaboration
with Siseñior, customers can
hire a specialist via Brico for
all their jobs. In the past year
also Praxis offered a service
to have products installed by a
professional for a fixed price.
a Better
Corporate Sustainability Policy
Maxeda DIY Group plays a prominent role in
society and we aspire to do business which fully
respects our corporate social responsibility. As a
Group, corporate responsibility means achieving
business success in ways that demonstrate
respect for people and the planet and upholding
values and high ethical standards.
We want to enrich the consumer’s choice of
more sustainable products, helping us all to
live in greener and healthier homes. Maxeda
DIY Group provides a range of products that
helps the recycling of home waste and improves
energy and water efficiency. These products will
be highlighted by a group-wide labeling scheme
with clear guidance provided in our (web)
publications and via in-store communications.
When it comes to driving corporate
sustainability, Maxeda DIY Group, as the
largest DIY retailer in the Benelux, takes its
responsibility very seriously. We believe that the
long-term positive impact on the environment,
society and our business will be rewarding. We
demonstrate respect for people and the planet
and we ask all our employees and suppliers
to consider the short and long-term impacts to
the environment and the community when they
make business decisions.
For us, the most environmentally useful
contribution we can make is to focus on
supplying responsibly sourced materials and
tools to our customers to make their homes
more sustainable. We have set sustainable
development priorities as guiding principles for
Maxeda DIY Group in Home, Products, Suppliers
and Operations.
38 • Maxeda DIY Group 2013/14 Annual Review
Sustainable Products
All products we source and offer to consumers
comply with relevant legislation and regulations.
We strive to embed sustainability principles into
the specification and development of all our
products (including but not limited to forests and
timber, chemicals, packaging and waste, energy
efficiency & accessibility). At Maxeda DIY Group
we have established a business code to utilise
sustainable or renewable raw materials. This
applies particularly to wood. Our purchasing
policy requires our buyers to purchase only
certified wood products which are PEFC, FSC or
TFT certified.
Building a Better World
To create a mutually beneficial business
relationship with our suppliers, we transfer know
how and share our innovative solutions with
them to make more sustainable products by
using resources more efficiently and responsibly.
We will ensure that all our suppliers understand
our values. We have an industry-aligned code
of conduct that is communicated to suppliers
through major roll out events and ongoing
annual notifications to help their factories meet
the standards and specifications we expect
of them. We ensure suppliers complete self
assessments, engage third party auditors and
have begun training sessions with suppliers.
We also collaborate through Business Social
Compliance Initiative (BSCI) to improve
To create a sustainable, quality culture
within Maxeda DIY Group, we are continually
developing more efficient and sustainable
ways of operating. We accomplish this
through increased use of renewable energy;
healthier and safer product storage, handling
and packaging; clear product specification
and dedicated investments in human and
social capital. Sustainable operations will be
implemented at all levels of the Group – at our
stores, in our logistics and our offices.
A Greener Maxeda DIY Supply Chain
Our Supply Chain & Logistics team is focused
on delivering improvement in service and
efficiency and reducing our carbon footprint.
With extra investments we made delivering most
of our goods on a single fleet possible, and were
therefore able to reduce the number of
kilometers driven in 2013. The use of our crossdock (Flow Through) has reduced the number of
vehicles on our roads and consolidates the flow
of goods from individual suppliers at two
platforms across the Benelux into one single
delivery per store.
40 • Maxeda DIY Group 2013/14 Annual Review
We are saving 70,000 KWh per month in our
DC, equal to the average consumption of 175
family houses per year. This has been achieved
by a combination of the installation of modern,
energy efficient lights and the use of motion
sensors to ensure only areas of the DC actually
being worked in remain lit. In several stores
all lighting has been replaced by LED lights.
In some stores geothermal energy is used in
order to reduce the use of fossil fuels. Praxis
and Vereniging Eigen Huis (VEH) closely work
together to stimulate saving energy inside
homes, for example by informing customers
which insulating materials they should use.
Packaging & Waste management
We have extended our use of plastic tote boxes
and dollies for store deliveries across both Brico
and Praxis. This initiative both improves the pick
efficiency at the DC and reduces the in-store
put-away time, resulting in less cardboard being
used. The majority of store deliveries are made
on dollies. All business units have developed a
waste management administration to be able
to monitor the packaging waste brought to the
market. We strive to decrease our impact on
the environment in a structural manner, in the
production stage, the use stage and the waste
Also, our customers can return broken lights and
electrical products to our stores, from where
these products are disposed and recycled in
a responsible manner. One of these initiatives
is WeCycle at Praxis. Responsible recycling
means preserving the environment by removing
harmful substances thus fewer resources need
to be taken from the wild. At Maxeda DIY Group,
recycling responsibly also means recycling
helped by the best techniques available.
42 • Maxeda DIY Group 2013/14 Annual Review
Building a Better World
Create the home and future of their
Our strategy is to help & inspire people to create
the home of their desires. Unfortunately, not
everyone has the opportunity to realise this.
We want to partner with charities and NGO’s
(Non-Governmental Organisations) in order to
contribute to our social responsibility.
The past year Praxis partnered with FSC and
WWF in order to make ranges and operations
greener. Praxis aims to exclusively source
certified sustainable wood products as from
2015. Also, Praxis is a member of the European
Sustainable Tropical Timber Coalition (EUSTTC). Participants to this coalition aim to
increase the demand for timber from sustainably
managed forests to a mainstream level as key
unlocking move for the tropical timber sector.
When ranges are being changed, tools that
can’t be sold anymore are donated by Praxis to
Stichting Gered Gereedschap (Rescued Tools
Foundation). Customers can also contribute by
bringing their old tools to a Praxis store. These
tools are then restored and in this manner get a
second life. Gered Gereedschap supplies tools
to technical schools and startup companies
in Africa, Latin America and Asia. Graduates
may keep the tools as starting capital, to help
them start their own businesses. Last year three
containers with tools were shipped to Uganda
and Zambia.
At Praxis the Corporate Sustainable
Responsibility (CSR) programme is high on the
agenda for 2014. The aim is to execute the
corporate strategy as green a way as possible.
44 • Maxeda DIY Group 2013/14 Annual Review
This includes focusing on energy efficiency,
sustainable products, building sustainable
relationships with our suppliers, customers and
employees and help customers making their
homes as sustainable as possible.
In the context of the diversity plan that Brico
signed with the Flemish region, a number of
stores in the northern region welcomed disabled
youngsters for an internship of several weeks.
In this way they get some work experience and
our employees experience helping people to
Brico supports Dream Day, an initiative of a
management school in Brussels (ICHEC). The
aim of the initiative is helping youngsters to
get acquainted with the business world. Brico
supports the initiative with an annual EUR 15,000
contribution. Also several Brico employees
welcome classes for a meeting in the stores in
order to share their enthusiasm and tell about
their professional experiences. This helps
students to understand major distribution roles
and get an idea of their opportunities.
Since the Formido Final Races of 2013 Formido
partnered with Stichting Ambulancewens
Nederland (Dutch Ambulance Wish Foundation).
This foundation consists of a group of 200
medically trained volunteers who daily fulfill last
wishes of non mobile terminal patients helped
by specially designed ambulances. In order to
inform customers about this foundation and
ask them for financial or other contributions a
special door poster can be found in all Formido
Maxeda DIY Group is committed to a sound
governance structure. Our shareholders are KKR,
Cinven, Permira and AlpInvest Partners – all renowned
private equity companies with considerable retail
expertise. Our Supervisory Board plays a crucial role
in overseeing the strategic and financial progress of
Maxeda Retail Group and Maxeda DIY Group. The
Supervisory Board, which consists of both investors
and external directors, is chaired by Tony DeNunzio.
46 • Maxeda DIY Group 2013/14 Annual Review
The Board discusses a range of matters,
including approval of the annual budget and the
strategic plans of both Maxeda DIY Group and
its formats, major investments, changes to the
company’s financial arrangements, changes to
the portfolio of the group, CSR, Risk
Management and subjects related to financial
policy. When urgent decisions are required on
matters specifically reserved for the Supervisory
Board in between scheduled meetings, there is a
process in place to facilitate discussion and
The Maxeda DIY Group Executive Board is
responsible for the strategy and the day-to-day
running of the company. Tony DeNunzio chaired
the Executive Board in the role of Non Executive
Chairman until January 2014 when Roel van
Neerbos took over the responsibility on a
permanent basis as Chief Executive Officer. The
CEO’s and MD’s of Maxeda DIY Group formats
report directly to the Executive Board. Each
month, the Board discusses the strategic and
financial progress of each format with the
format management. Issues such as expansion,
investments, projects and labor conditions are
also submitted to the Executive Board for
Maxeda DIY Group has established an
independent Remuneration Committee,
comprised of representatives from both our
investors and external directors. The Committee,
which is chaired by Erik Thyssen, meets formally
three times during the financial year to advise
the Supervisory Board on all topics relating to
Maxeda DIY Group’s remuneration policy,
including the remuneration and bonus scheme
of key Maxeda DIY Group managers.
48 • Maxeda DIY Group 2013/14 Annual Review
Maxeda DIY Group has also established an
independent Audit Committee, comprised of
representatives from both our investors and
external directors. This Committee is chaired by
Ronald van der Mark. The Audit Committee
oversees Risk Management, internal controls,
fraud and financial reporting. Maxeda DIY
Group’s external auditors are active participants
at all Audit Committee meetings. The Audit
Committee formally meets three times during
the financial year at appropriate times in the
reporting and audit cycle. The Audit Committee’s
responsibilities include advising the Supervisory
Board on the approval of the Annual Review,
announcements relating to financial
performance and changes to accounting
standards. The Audit Committee also oversees
the relationship with external auditors. It meets
with them three times a year to discuss findings
with them and, when relevant, to approve other
non-audit-related services.
Maxeda DIY Group is committed to a
sound control environment
Although Maxeda DIY Group is not required
to be compliant with the Dutch Corporate
Governance Code or Sarbanes Oxley, Maxeda
DIY Group has a professional Risk Management
and internal audit function in place, which
operates under the name Risk Management.
Risk Management, which reports to the CFO
and the Audit Committee operates at group
level, as well as across all formats. The annual
plan of the Risk Management and internal audit
function is approved and monitored by Maxeda
DIY Group’s Audit Committee. Maxeda DIY
Group Risk Management addresses the Group’s
vulnerability to risks and threats by improving
business processes and ensuring that key
controls and Maxeda DIY Group-wide policies
are carried out effectively.
Maxeda DIY Group has defined and
implemented frameworks for key financial
and IT controls across the entire organisation.
A detailed authorisation scheme is in place,
prescribing authorisation levels across Maxeda
DIY Group and its business units. This procedure
is audited on an annual basis. Going beyond
baseline financial and IT controls, the scope of
Maxeda DIY Group Risk Management includes
operational and strategic risks. In view of its
commitment to integrity, Maxeda DIY Group
has implemented a code of conduct and a
whistleblower hotline. Each Business Unit issues
an ‘In-Control Statement’ at the end of each
financial year. In this statement, the Business
Unit boards declare that they are in control.
They are required to mention any exceptions
and, in such cases, implement a remediation
plan. Maxeda DIY Group has established a
process for identifying, remediating, monitoring
and reporting on areas for which control
improvements are considered necessary.
Accountability for being and remaining within
control lies with management at business unit
level, as well as at group level, supported by
explicit reporting lines. Maxeda DIY Group and
Business Unit Risk Management closely monitor
whether control improvements are implemented
in a timely and effective fashion. On a quarterly
basis, Risk Management provides the Executive
Board with a dashboard, presenting outstanding
issues and commenting on progress.
In accordance with Dutch law, Maxeda DIY
Group has a two-tier management structure,
consisting of a Supervisory Board and an
Executive Board. The Executive Board serves
the primary executive function, managing daily
operations. The Supervisory Board supervises
the policy of the Executive Board and the
general course of corporate affairs. In addition,
an ‘Investor Board’, comprising Maxeda DIY
Group’s private equity investors and the
Executive Board, meet on a regular basis. In
total, the Supervisory and Investor Boards meet
10 times a year.
Our Performance
Each year, Maxeda DIY Group develops a threeyear strategic plan including all major initiatives.
This plan is then translated into a one-year
operating budget. Performance is tracked each
period against the company’s key strategic
value drivers and financial operating plan. The
company has developed a sophisticated set
of key performance indicators to further track
progress. The most important of these are:
• market share
• sales (‘like for like’ and total)
• number of visitors and customers
• average transaction values
• net margins
• costs by department and type
• capital spend and return on investment
• working capital changes
• cash flow
• customer satisfaction and last but not least
• employee engagement
Executive Board
Roel van Neerbos
John Colley
In January 2014 Roel van Neerbos (55) joined
Maxeda DIY Group in the role of CEO. Roel
has more than 28 years of experience in senior
leadership roles in strong consumer focused
companies such as Procter & Gamble, Mattel
and most recently Heinz where he held the
position of President Continental Europe &
President Global Ketchup.
John Colley (42) was appointed CEO of Praxis in
March 2013. John has spent the last few years
driving the supplier partnership and range review
programmes as Chief Commercial Officer for
Maxeda DIY Group with considerable success.
He joined us in 2010 from B&Q where he was
Commercial & Marketing Director. He has a
wealth of experience in different commercial
and trading roles at retail companies Screwfix
Direct, Argos and Woolworths.
Arjan Kaaks
Arjan Kaaks (48) was appointed CFO of Maxeda
Retail Group and Maxeda DIY Group in August
2011. Arjan Kaaks has extensive experience in
FMCG and more recently Retail. He spent 12
years of his career in different roles in Unilever,
before joining Royal Grolsch NV as CFO,
followed by O’Neill Group as COO/CFO. He
has lived and worked in France, Belgium, the
UK and Sweden and in his home country, the
Erik Haegeman (50) joined Maxeda DIY Group
in January 2013 from the Bricorama Group
where he had been CEO since 2006. Before
that he was General Manager for Bricorama
Benelux and Spain. Erik is an experienced DIY
retailer, having worked in general management,
operations and commercial roles at Bricorama
and at Brico where he started in 1988.
Anja Maassen van den Brink
Sébastien Krysiak
Anja Maassen van den Brink (45) was appointed
Group HR Director in February 2012. She joined
us after a highly successful 18 year career
within the Sara Lee Group, in which she fulfilled
many key HR roles, most recently as HR Vice
President of the International Beverage and
Bakery Division.
Sébastien (41) joined Maxeda DIY Group in
2012 in the role of MD Plan-It. In 2013, he
assumed extended responsibilities in the role
of Chief Operating Office Maxeda DIY Belgium.
Sébastien started his career with Castorama
France, before transferring to help start up
Castorama in Poland as Commercial Director.
He is a very experienced DIY big box retailer
and joined Maxeda DIY Group after two years as
Commercial Director Decorative for B&Q UK.
Martin Lee
Martin Lee (46) joined Maxeda DIY Group in May
2011 as Chief Supply Chain Officer. He joined
us from DHL where he was Managing Director
Supply Chain & Business Transformation. He
has extensive experience in Retail Supply Chain
and Buying functions at Kingfisher, Best Buy and
50 • Maxeda DIY Group 2013/14 Annual Review
Erik Haegeman
Supervisory Board
Tony DeNunzio
Xavier Geismar
The Non Executive Chairman of the Supervisory
Board is Tony DeNunzio (54). He has been
involved in the Maxeda business for nine years.
He is also the non-executive Chairman of Pets
at Home Group plc and non-executive Director
of Alliance Boots Ltd. Tony is a Senior Advisor
to KKR on retail matters. Prior to joining Maxeda,
Tony was President and Chief Executive Officer
of Asda, Wal-Mart’s UK operation, a company
which he joined in 1988. Before joining Asda,
Tony worked for the international consumer
products companies Unilever, L’Oréal and
Member of the Supervisory Board Xavier
Geismar (39) joined the Supervisory Board in
March 2011. Xavier joined Cinven in 2001. He is
a member of the Consumer and the Industrial
sector teams. Xavier was previously a consultant
at The Boston Consulting Group in Paris. Prior to
this he worked for Bankers Trust in London.
Todd Fisher
Vice Chairman of the Supervisory Board Todd
Fisher (48) has been with KKR since 1993.
Since July 2008, he has been the global Chief
Administrative Officer for KKR, overseeing
all finance, legal, IT, HR, public affairs, office
operations and risk management functions
at the firm. He also oversees the firms efforts
in Real Estate. Prior to that, he was a Senior
Partner in KKR’s London office. He currently is
a member of KKR’s Management Committee
and Real Estate Investment and Portfolio
52 • Maxeda DIY Group 2013/14 Annual Review
Marc van Gelder
Member of the Supervisory Board Marc van
Gelder (53) was appointed to the Supervisory
Board in 2005 following the recommendation
of the Works Council. He was Chief Executive
Officer of the pharmaceutical and medical
device retail and distribution company Mediq
NV until early 2014. Previously, Marc worked at
Royal Ahold and McKinsey & Co.
Supervisory Board
Ronald van der Mark
Erik Thyssen
Member of the Supervisory Board Ronald van
der Mark (48) joined Maxeda as Chief Financial
Officer in 2004 and stepped down as of May
2011. During his career, Ronald has worked in
accountancy, the entertainment industry, retail
and building sector. Ronald is CEO of Action BV.
Member of the Supervisory Board Erik Thyssen
(52) was appointed to the Supervisory Board in
2004. Erik is a Managing Partner of AlpInvest
Partners. He joined AlpInvest Partners in 2001.
Prior to that, Erik was a member of the Executive
Board of Fortis Bank Nederland. Before that he
worked in commercial and investment banking
in various European countries for the Generale
Bank Group.
Cheryl Potter
Member of the Supervisory Board Cheryl Potter
(44) has been with Permira since 1999. She
currently is Global Head of the Consumer Team
and Head of the London office at Permira.
Cheryl also serves on the Board of Iglo Group
and Dr. Martens. Prior to joining Permira, she
worked at Royal Bank Development Capital and
Arthur Andersen. She is a qualified Chartered
54 • Maxeda DIY Group 2013/14 Annual Review
Alain Vourch
Member of the Supervisory Board Alain Vourch
(47) was appointed to the Supervisory Board
on 1 March 2011. Alain is a Managing Director
at KKR Capstone and has been involved with
Maxeda since 2004. He is a member of KKR
retail team and had significant involvement with
SMCP and Pets at Home, two other KKR portfolio
companies in retail, as well as Tarkett, a global
flooring manufacturer. Prior to KKR Capstone,
he worked as a Management Consultant at
The Boston Consulting Group and has in depth
experience in consumer goods and retail.
Financial Performance & Review
& Review
Our financial year 2013/14 started with a cold and icy
spring, but finished with green shoots of consumer
confidence recovery and a more dynamic housing
market. Maxeda DIY Group delivered a solid result
with key projects on target and market shares ahead,
particularly in the Netherlands.
Arjan Kaaks,
Chief Financial Officer
Maxeda DIY Group’s EUR 101 million EBITDA in
2013/14 reflects a solid performance in a year that
was again challenging. The weather in Q1 was icy
and this impacted sales, Q2 saw some recovery
but with higher discounting. Q3 was marketwise
slow in the Netherlands, but from October onwards
it seemed consumers woke up after a long
hibernation, hence a stronger Q4.
The Dutch DIY market declined for another year,
whereas the Belgian market remained stable.
Whilst the Dutch DIY market was more negative
than planned, through stronger trading and
marketing activity our business grew significant
market share. In both the Netherlands and Belgium,
markets consumer confidence levels improved
56 • Maxeda DIY Group 2013/14 Annual Review
markedly. Against this background, total sales of
DIY stores in 2013/14 were stable year on year, as
growth in Belgium offset the market driven decline
in the Netherlands.
Our strategic initiatives on supplier collaboration
and consolidation (SPP), range renewal, private
label penetration and Asia sourcing continued to
drive margin. Through a focused effort on cost
reduction in the area of ‘goods not for resale’ we
managed to offset the negative impact of wage
inflation and rent indexing.
Our continued discipline in the area of working
capital ensured a robust cash flow from the Group
EBITDA of EUR 101 million. Maxeda DIY Group
Financial Performance & Review
invested EUR 24 million in new stores and
capabilities, particularly online, supporting our
strategies and the management of our formats.
We added a net 6 stores throughout the year and
renovated 25.
From October onwards, positive news flow came
through on consumer confidence evolution,
housing transactions and GDP development.
Whilst still cautious, we do believe that we are
seeing a trend reversal, and expect the years
ahead to demonstrate growth in our sales and
profits. In 2014 we plan to further expand our
online presence and capability. Cost control and
simplification of processes will help drive
productivity in our service centers. Customer and
service orientation are the themes driving our
commercial and store strategies. We still see
significant opportunities to drive our core product
offer, our format development, cross group
synergies and our online business.
58 • Maxeda DIY Group 2013/14 Annual Review
Thank you
My Maxeda DIY Group colleagues and our
sponsors were fully engaged and demonstrated
good teamwork as we traded through a tough
2013. We came out as a stronger business,
ready to leverage the anticipated brightening of
the DIY market climate. Thank you for your
commitment and hard work throughout 2013/14.
Arjan Kaaks
Chief Financial Officer
Key Figures
Consolidated full year figures (February 2013 - January 2014)
from continuing activities
in Key Figures
The key figures that are presented on the following
page are, if applicable, based on IFRS (International
Financial Reporting Standards), with the exception of
the pensions. To provide better insight, Maxeda Retail
Group and Maxeda DIY Group use certain alternative
financial performance indicators, such as Operating
EBITDA. Operating EBITDA is operating profit before
exceptional results and before tax, interest, depreciations
and amortisation. Annual accounts comprise other
performance indicators, so that other alternative financial
performance indicators cannot be directly linked to
items in said annual accounts. The Maxeda Retail Group
comprises Maxeda DIY, Maxeda DIY Group as well as the
holding company of the Maxeda Retail Group.
Net sales1
Million Euros
Operating EBITDA1
Million Euros
Average number FTE
Working Capital
Million Euros
Gross investments
fixed assets
Million Euros
60 • Maxeda DIY Group 2013/14 Annual Review
Number of stores
52 weeks
Normalised, following Deloitte review.
Visitors’ address
De Entree 500
1101 EE Amsterdam
The Netherlands
Correspondence address
P.O. Box 22954
1100 DL Amsterdam
The Netherlands
+ 31 (0)20 20 19 600
[email protected]
Maxeda DIY Group 2013/14 Annual Review
We help and inspire
people to create
the home of their desires

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