2013 Group Annual Report
Transcripción
2013 Group Annual Report
ANNUAL REPORT 2013 CORPORATE OFFICE 22 Quai Gallieni F-92150 Suresnes France ANNUAL REPORT 2013 CONTENTS Foreword Group CEO Statement Board Members Key Highlights of 2013 Key Numbers 03 04 05 06 08 1 > Group Strategy 10 2014 Priorities People & Expertise 12 14 ANOVO IS A MARKET LEADING PROVIDER OF AFTER SALES SUPPORT AND SUPPLY CHAIN MANAGEMENT SERVICES WITHIN THE TELECOMMUNICATIONS, ACCESS, INFRASTRUCTURE & NETWORKING AND CONSUMER ELECTRONICS MARKETS. OUR SERVICES SUPPORT A BROAD RANGE OF PRODUCT TECHNOLOGIES COVERING MOBILE AND FIXED COMMUNICATION DEVICES, COMPUTERS, TABLETS, SET-TOP BOXES, HOME GATEWAYS, GAME CONSOLES, AND TV PRODUCTS. THE GROUP OFFERS COMPANIES AND INDIVIDUALS INTEGRATED SERVICES IN REPAIR, REGENERATION, RETURNS AVOIDANCE, TECHNICAL CALL CENTRES AND SMART 2 > Regional Overview 16 Latin America France, Belgium, Switzerland Spain UK, Germany, Poland 18 20 22 24 3 > Market Spotlights 26 Insurance Fulfilment Regeneration Returns Avoidance Smart Logistics Proximity Repair 28 30 32 34 36 4 > Performance 38 Financial Statements Highlights Corporate Social Responsibility 40 42 46 LOGISTICS. IN THIS WAY, ANOVO MAKES IT POSSIBLE TO EXTEND THE LIFECYCLE OF HIGH-TECH PRODUCTS, AND EVERY YEAR OFFERS A SECOND LIFE THROUGH REPAIR, REFURBISHMENT AND RECYCLING SERVICES TO MORE THAN 20 MILLION PRODUCTS WORLDWIDE. FOR FURTHER INFORMATION, PLEASE VISIT OUR WEBSITE WWW.ANOVO.COM FOREWORD This year has been another strong year for ANOVO, building successfully on the solid performance delivered in 2012. Despite a challenging economic environment, the Group continued to innovate, and grow its client base within all markets, delivering a very positive set of results. ANOVO has progressed well to establish itself as the international after-sales partner of choice and I am encouraged by the pace at which the Group is evolving to ensure we can take full advantage of the opportunities we see today in our core markets and take a leading position in our future markets. Our aim is to keep innovation at the heart of what we do to ensure we continue to bring real added value and service flexibility to our customer base. The overall result in revenue and profit this year is particularly pleasing because it has been achieved in parallel with 1) launching new operations in Latin America and Germany, 2) consolidating sites in Poland and 3) scaling up significant new activities in Spain. This strategy has involved the work and support of resources from all subsidiaries. This underlines our capability to grow profitably, maximise our investments and leverage the international collaboration we now have across the Group. I would like to thank all of the ANOVO staff for their contribution to the achievements made this year. We have made significant progress on all strategic priorities this year. The financial base and conditions are now set to continue the momentum and we are committed to further investments in new operations and capabilities in the first half of 2014. The Group is well positioned to accomplish the challenges we have set as a priority for this year. WALTER BUTLER PRESIDENT ANNUAL REPORT // 2013 03 BOARD MEMBERS GROUP CEO STATEMENT I AM PLEASED with the progress made this year as we demonstrated the Group’s ability to grow profitably while simultaneously delivering on the promises made last year to evolve our business model. Innovation has been at the forefront of our activities continuing the development of our technology solutions across all sectors which is establishing us as a service partner bringing real added value and service differentiation to our clients. Notably, our returns avoidance solutions received strong plaudits and endorsements from our customers while Telefónica backed ANOVO to support the launch of new buy-back services across our network in Latin America. The expansion of walk-in-repair solutions for our multi-channel Operator, Retail and OEM customers has started with real momentum in Spain and Latin America and we expect this to continue at the same rate this year. Strengthening the management team, adding new capabilities and re-focusing on more specialised marketing of buy back services has kick-started a global Regeneration business which is now expected to reach over ¤100M revenue this year and will be fully diversified across Operator take-back, B2C buy-back, B2B asset recovery and a significantly larger share of insurance fulfilment business. Within operations we have improved profitable performance across all entities as a result of the roll-out of our enterprise-wide IS strategy built around our proprietary systems, and an ‘Innovation’ focus on streamlining existing activity while we consolidated customer flows and sites in Poland and Spain. We continued our geographic expansion in Latin America with the start-up of an innovative walk-in-repair network in Colombia and roll-out of our depot operations in Bogota and with further acquisitions to come this year in Brazil we are pursuing successfully our strategy to capitalise on the growth opportunities in this region. ANOVO Deutschland GmbH was successfully launched at the end of 2013 in Düsseldorf and our first operation is an optimally located platform from which to build new business quickly. We have further strengthened the Executive Management team bringing in a new Deputy Group CFO and new CEOs for France, Peru and Switzerland while renewing the commercial teams locally and at Group level. I would also like to personally acknowledge the commitment made by all of the staff throughout all of our sites and know I can count on them to continually meet the challenges we have ahead of us. I take also this opportunity to thank all of our customers for their continued trust in ANOVO. Finally, our Group needs to continue to evolve, in sync with our customers’ business. This is one of the reasons our management team decided to launch a global re-branding of ANOVO in order to enforce our international identity. Our new logo aims to suggest an agile and modern company, delivering real economic value to its customers. We do find solutions and we definitely keep our promises. We encourage our customers to take a fresh look at the ‘new ANOVO’ and our activities. WALTER BUTLER President ANOVO Group & President Butler Capital Partners (Shareholder) LAURENT PARQUET Partner, Butler Capital Partners FRANÇOIS LACOMBE Chief Executive Officer - ANOVO Group RICHARD WILSON Chief Commercial Officer - ANOVO Group CHRISTIAN LAFERRERE Managing Director, Regeneration – ANOVO Group KEVIN COLEMAN Chief Executive Officer - ANOVO UK MICHEL TOURNIER Chief Information Officer - ANOVO Group BRIGITTE ALBRAND Chief Financial Officer - ANOVO Group JOSE GARCIA Chief Executive Officer - ANOVO Spain CLAUDE-ALAIN CORMERAIS Chief Executive Officer - ANOVO France EDOUARD CELIER Deputy CFO - ANOVO Group FRANÇOIS LACOMBE CHIEF EXECUTIVE OFFICER ANNUAL REPORT // 2013 05 KEY HIGHLIGHTS OF 2013 JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER ACQUISITION / EXTENSION OF OPERATIONS NEW CONTRACT WIN MARKETING CSR CSR > ANOVO sponsors CA Brive Rugby Club within France top Rugby league. NEW CONTRACT WIN NEW CONTRACT WIN NEW CONTRACT WIN > ANOVO is awarded the regional contract to service all Philips branded TVs in France. > ANOVO supports Telefónica Movistar in the roll-out of proximity repair services in Colombia. ACQUISITION / EXTENSION OF OPERATIONS APPOINTMENTS > ANOVO France raises 2000 euros for Cœur de forêt during Sustainable Development Week. NEW CONTRACT WIN MARKETING > ANOVO UK wins the Annual Mobile News Service & Repair award for the 5th time. > ANOVO and IBM confirm continued collaboration into 2014. > ANOVO Spain is selected as key supplier of multi-channel integrated hub and after-sales services for a market-leading Telco Operator. > ANOVO confirms its’ presence at Mobile World Congress in February 2014. > David Grandjean is appointed as CEO for ANOVO Switzerland. > ANOVO cements its foothold in Latin America with the establishment of a new subsidiary in Bogota, Colombia. NEW CONTRACT WIN > Nokia extends its service contract with ANOVO UK. > ANOVO Spain begins working with Vodafone for Set-Top Box repair and refurbishment and Call Centre Operations. > ANOVO is appointed as the sole repair partner for ZTE Livebox repairs in Poland. NEW CONTRACT WIN > Phones 4U sign exclusive contract with ANOVO UK for after-sales support functions. > Telefónica selects ANOVO as preferred partner to launch its device buy-back program in Chile, Peru, Colombia and Brazil. > ANOVO Deutschland GmbH was launched from its’ operation in Düsseldorf. APPOINTMENTS NEW CONTRACT WIN > ANOVO Belgium launches Regeneration services for Vanden Borre (Darty Group). > Brigitte Albrand extends her duties to include Deputy General Manager Regeneration. > Edouard Celier is promoted to Deputy Group CFO. > Mike Wiedemann is appointed as Business Unit Manager for ANOVO Germany. APPOINTMENTS > Astou Dia is appointed International Business Development Manager Regeneration. MARKETING > ANOVO launches new brand image and positioning. MARKETING > Samsung’s annual audits see ANOVO recognised as the only Grade A service centre for Samsung in the UK. ACQUISITION / EXTENSION OF OPERATIONS > Regeneration activities consolidated under a Global Business Unit. ANNUAL REPORT // 2013 07 KEY NUMBERS 2012 2013 €’000 revenue 140000 0 2014 (projected) 100000 % 13 Regeneration 0 Insurers 20000 71 Retailers 40000 Operators 60000 Manufacturers 80000 €’000 revenue 80000 2012 2013 60000 2014 (projected) 40000 20000 0 % 2014 (projected) 2012 2013 2014 (projected) Repair & Refurbishment Regeneration New services * 14 66 Total 2012 Total 2013 Total 2014 (projected) Switzerland 100000 Latin America Spain Belgium Poland UK Poland Spain Latin America Spain Germany Latin America Switzerland Belgium France Regeneration France Regeneration Insurers Switzerland Belgium 13 % 14 58 Repair & Refurbishment Regeneration % * New services 16 16 100000 80000 60000 Regeneration New services * 20 Belgium 2013 120000 France 2012 120000 16 Total 2012 Total 2013 Total 2014 (projected) 66 20000 0 26 13 Repair & Refurbishment Regeneration New services * % Total 2012 Total 2013 58 Total 2014 (projected) % 71 Germany 20000 % 26 Latin America 40000 Regeneration REVENUE BY CUSTOMER TYPE 120000 * Revenue from services delivered within Returns Hub Management, Returns Avoidance & Technical Call Centres and Proximity Repair solutions. 20 Repair & Refurbishment 40000 2014 Insurers 150000 Total 2012 100000 Total 2013 50000 Total 2014 (projected) 0 354 141 80000 60000 0 13 100000 Retailers 200000 315 077 255 400 255 400 % 71 Manufacturers 250000 Operators 0 2012 2013 2014 (projected) 120000 UK 300000 354 141 Poland 20000 315 077 140000 Germany 350000 Spain 40000 Belgium 400000 Switzerland 60000 Latin America €’000 revenue France GROUP REVENUE Regeneration 100000 80000 Insurers Retailers 16 2014 (projected) 20 Repair & Refurbishment Regeneration % Total 2012 14 Total 2013New services * 66 Total 2014 16 (projected) 71 Total 2012& Refurbishment Repair Total 2013 Regeneration Total 2014 New services * (projected) Spain 2013 2013 20000 Switzerland 2012 40000 Belgium 0 0 120000 2012 2013 2014 (projected) 0 13 16 UK 20000 50000 0 13 60000 France 40000 €’000 revenue 20000 16 % 20000 80000 France 100000 40000 7140000 Poland 150000 REVENUE BY COUNTRY 0 80000 2014 (projected) 60000 2013 60000 2012 2013 120000 2014 (projected) 100000 Germany 2012 Regeneration 0 200000 100000 % 6000071 80000 Manufacturers 250000 20000 100000 Insurers 50000 255 400 Operators 120000 315 077 Retailers 100000 40000 Operators 350000 300000 354 141 €’000 revenue 60000 Manufacturers 140000 150000 120000 2014 (projected) 80000 200000 400000 2013 100000 Latin America 2012 255 400 250000 0 REVENUE BY SERVICE TYPE 300000 120000 0 Spain 315 077 20000 2012 Retailers 140000 50000 354 141 350000 Manufacturers 40000 100000 400000 Operators 60000 150000 GROUP REVENUE 80000 80000 200000 16 Switzerland 100000 UK 120000 100000 255 400 250000 120000 Germany 315 077 300000 140000 UK 354 141 350000 Poland 400000 ANNUAL REPORT // 2013 09 01 Strategy SOLUTIONS FOUND. PROMISES KEPT. We know our success depends on our clients’ success, and we have built our strategy around this. Our ultimate goal is to work with customers to develop exceptional solutions that deliver innovation, value and sustainability, while driving efficiencies and protecting their brand’s reputation. This is our promise. In its deliverance, we focus on building long-term partnerships with customers, so that their customer services are unrivalled in the industry. ANNUAL ANNUAL REPORT REPORT 2013// ANOVO 2013 \ 11 PRIORITIES 2014 STRATEGY // 2014 PRIORITIES Lorem belgaeurn page tobusiness check out our and range career and On the ipsumes strength aquitani of our 2013 results,the projected plans theofmarket experience opportunities. our Talent Academy for first-year students, which opportunities immediatelyFrom available to ANOVO, the Board is pleased to confirm will boost your funding employability skills, thethe page to check out our range that additional is being put to in our placesix-week. to support planned acquisitions of career and experience opportunities. and continued development of our new services portfolio. 20% DOUBLE DIGIT REVENUE GROWTH IN 2014 OF BUSINESS FROM NEW MARKETS 2014 PRIORITIES • Smart Partnering to extend footprint and services We will continue collaboration with global logistics partners and international alliances in order to extend our global reach and develop intelligent new service models for our clients. > Looking forward to 2014 our priorities are focused on acceleration in the following areas: • Entry into new markets We will develop in line with technological advances in the Machine to Machine (M2M) and Telemetry arena a range of services aimed at supporting devices and our customers’ infrastructure needs within metering, vending, utilities and retail markets. In parallel we will increase our investment in high-end infrastructure & networking support services. • Deployment of advanced services in all regions Last year Regeneration services were extended to all countries. Insurance fulfilment and refurbishment were established as key enablers to our growth in this market and the expansion of device management and fulfilment services for international insurance clients is a key priority in 2014. Walk-in and proximity repair services continued their successful expansion in both Latin America and Spain. The priority this year is to develop models which can be used effectively by our customers in all countries in which we operate. Returns Avoidance (RA) solutions have been deployed internationally with expert support from the multi-lingual UK call centre. In 2014 the aim is to deploy RA solutions in the Access and Broadband markets, supporting our customers with on-line, call centre and remote diagnosis solutions for Set Top Box (STB) and Router products. • Evolving the Regeneration business for maximum growth Our global Regeneration business will continue its evolution, focused on managing the increasingly multi-channel demand for our services, whilst delivering improved operating margins. Annual shipments of consumer M2M devices with embedded cellular connectivity, million units (World 2010-2016) Million units 40 35 30 25 20 15 10 5 Year 0 2010 2011 2012 2013 2014 2015 2016 ANNUAL REPORT // 2013 13 PEOPLE & EXPERTISE BELGIUM POLAND The Group has operations in 12 countries supporting customers through a network of 23 specialised service centres and reverse logistics hubs. In 2013, ANOVO delivered comprehensive solutions and consistently high levels of service to meet the changing needs of its’ growing customer base. These are our key by-country summaries. 1 site 40 headcount 1 site 256 headcount Specialised Hub in high growth forward and reverse logistics for Benelux region and distribution market. LCD Display Centre of Excellence & Class One Clean Room Supporting Central European region Czech Republic, Austria, Hungary and Slovakia. GERMANY 1 site 31 headcount UK 5 sites 1071 headcount Mobile News Service & Repair Award Winners 2013. International customer call centre for Dell. Express repair Hub for Germany, France, Benelux and Italy regions, located in Düsseldorf. Began operations in 2013. CHINA FRANCE 2 sites 8 headcount 5 sites 1014 headcount COLOMBIA 1 site 25 headcount PERU SPAIN 1 site 765 headcount 3 sites 1050 headcount CHILE 2 sites 421 headcount BRAZIL 1 site 120 headcount Leading Customer Walk-in-Repair centre network for Movistar and Samsung and launch of professional Operator Buy-back services. Specialised parts sourcing and refurbishment, and trading of devices. Love2recycle.fr continues as buyback market leader in France. 60% of Telco Reverse & Repair Market Share, multi-operator and multi-technology repair for Iberia region. SWITZERLAND 1 site 91 headcount Market leading mobile device Insurance fulfilment service with nationwide 24 hour TAT coverage. ANNUAL REPORT // 2013 15 02 Regional Overview INNOVATING FOR THE FUTURE We are delighted that all subsidiaries posted positive EBIT results. Through the development and roll-out of flexible service solutions, a Group focus on reducing costs and continued investments in productivity, ANOVO has not only secured new contracts within the trading period, but also unlocked significant savings for existing key customers. ANNUAL REPORT // 2013 17 PRIORITIES 2014 REGIONAL OVERVIEW // LATIN AMERICA Lorem ipsumes aquitani belgaeurn the page to check out our range of career and experience opportunities. From our Talent Academy for€24 first-year students, which Full year revenue for 2013 reached M, representing will boost your employability skills, to our six-week. theexpect page to check out our range 7% of Group Revenue. In 2014 we a further growth of career and experience opportunities. of 25% for the entire region. 350 PEOPLE DEPLOYED IN CUSTOMER CALL CENTRES AND WALK-IN-REPAIR NETWORK LATIN AMERICA > Our Results 2013 saw strong contribution from operator repair and refurbishment services in all markets and the launch of reverse hub and returns management services for key retailers. Low volume, high margin activities were focused on high-end repair of Server, PC and parts repair for the IT market. OUR 2014 EXPANSION ANOVO is focused on continued growth in Latin America. In 2014 we launch operations in Brazil - the world’s sixth largest economy, where we will initially support demand for STB repair and refurbishment, Walk-InRepair of mobile devices and consumer electronics products, and further development of customer buy-back services. Growth in 2014 will be supported by further consolidation of core activities with existing and new operator customers and the launch of Regeneration services in the region, which will reach 10% of total regional revenue. > Our Core Capabilities End-to-end after-market services solutions, focusing on rapid TATs and seamless integration between call centre, reverse hub, repair depot and customer operations. Our core services continue to drive cost and customer service benefits for our B2B customers, ensuring we deliver on our promise to protect their brand values. Telefónica has endorsed our capabilities, by supporting our expansion of their services in Colombia and Brazil, and entrusting to ANOVO’s expertise the rollout of new buy back services marketed to its customers across Latin America. “We have initiated the Proximity Repair project in Colombia with ANOVO this month. It has been very well perceived by our customers and we believe it will be a success thanks to ANOVO’s expertise in this particular service, as well as its noted professionalism.” NELLY ROCÍO, Technical Service Manager from Telefónica, Colombia ANNUAL REPORT // 2013 19 PRIORITIES 2014 REGIONAL OVERVIEW // FRANCE, BELGIUM, SWITZERLAND 38% Lorem ipsumes aquitani belgaeurn the page to check out our range of career and experience opportunities. From ouraTalent Academy students, which 2013 has been positive year forfor thefirst-year region covering France, will boost your employability skills, to our six-week. page to check out our Belgium and Switzerland, whichthe altogether contributed anrange of career and experience opportunities. impressive 38% of total Group Revenue. FRANCE, BELGIUM, SWITZERLAND > Our Results Strong results are attributed to a combination of restructured operations, a stronger focus on achieving excellent customer satisfaction, and increasing consumer demand for refurbished devices. OF GROUP REVENUE IN 2013 BELGIUM Our Belgian operation continues to grow in terms of resources and turnover year-on-year. With activities primarily focused on returns management, repair handling and logistics, the site collaborates with our central refurbishment sites in France and Poland to expertly service products covering modems, mobile devices and decoders. Demonstrating a strong client portfolio in 2013, ANOVO Benelux’s site revenue has doubled in three years, following the provision of professional services to prestigious brands such as VOO TV Vlaanderen, Telesat, Siemens Gigaset, Netgear and BeTV. SWITZERLAND > Our Core Capabilities FRANCE In France, 2013 has seen increased volume in most of our activities. We have continued to focus on operational excellence, delivering consistent efficiency and productivity. The redistribution of the customer activities in the Access, Telco and Multimedia markets has been completed across Beauvais, Brive, Montauban and Angers, leading to a better balance in capacity and ability to leverage skilled resources across the sites. Within Telco, we continue to focus on reverse hub screening and RMA management services for our Operator customers, at the same time, working on value-engineering for our market-leading B2C device buy-back channel, Love2recycle.fr. This operates alongside a well established B2B operation via customer shops and operator marketing programs. ANOVO Switzerland leads the local Regeneration market, working in partnership with major operators and insurance companies to ensure continued success. Operations have been improved, resulting in increased volumes in integrated Reverse Hub activities. This trend will continue as we plan to drive increased volumes of new products on the integrated Hub and repair platform. OUR GROWTH IN 2014 The focus for 2014 lies firmly in the increased investment of resources for operational excellence, innovation and increasing customer satisfaction. Additionally, we aim to drive sustainable and profitable growth of the STB, Modem and Triple Play businesses. Both Belgium and Switzerland will renew their existing Regeneration services, developing new customer channels in retail in order to maximise market growth. ANNUAL REPORT // 2013 21 REGIONAL OVERVIEW PRIORITIES 2014 REGIONAL OVERVIEW // SPAIN Lorem ipsumes aquitani belgaeurn the page to check out our range of career and experience opportunities. From our Talent Academy for first-year students, which will boost your employability to our six-week. the page to check out our range Revenue skills, in excess of 60M€ reflecting a year-on-year of career and experience opportunities. growth of 22%. 2014 growth is set at 20% for the region. 60% In Iberia, we repair in excess of 1.9M customer devices from over 8,000 individual point of sales or customer collection points. TELCO MARKET SHARE TAT 22% < 3 DAYS Students voted us the number one Graduate GROWTH Employer in The Times Top 100 Graduate lorem ipsum survey. Students voted number Graduate YEAR ON YEAR SPAIN > Our Results The combined sites of Madrid, Malaga and Barcelona have repaired in excess of 4 million units during 2013, providing the highest standard of after-sales service and delivering excellent customer satisfaction results. > Our Core Capabilities Whilst the Spanish economy emerges slowly out of recession, its’ fragility continues to impact on the technology market place, resulting in a reduction in demand of circa 20%. Despite this, ANOVO Spain has achieved continued growth in every service and sector. Our 2013 focus on innovation led to the development of a unique understanding of consumer needs in the Spanish market. We have used this understanding as a key strength which has been successfully developed in our network of Walk-In Repair Centres throughout the region. This Proximity Repair solution not only streamlines and differentiates the entire after-sales experience, but also places us directly in front-line contact with our customers’ customers at the point of sale. OUR GROWTH IN 2014 In 2014, ANOVO Spain will focus on protecting its’ market-leading position by ensuring that we fully align with and anticipate changing consumer needs across all business areas. We plan to develop the multi-channel after sales support for Operators, Dealers, Distributors, and Insurance providers offering multiple touchpoints and options to our clients in return maximising convenience for end users. We will also enhance our technical expertise through continued improvement of the expert reverse logistics management system, and further development of in-store and point of sales support for our customers. By the end of 2014 we expect to support over 4,000 customers per month through our walk-in repair locations. ANNUAL REPORT // 2013 23 PRIORITIESOVERVIEW REGIONAL 2014 REGIONAL OVERVIEW // UK, GERMANY & POLAND Lorem ipsumes aquitani belgaeurn the page to check out our range of career and experience opportunities. From our Talent Academy forand first-year which A solid revenue result of €104.5M secondstudents, consecutive will boost your employability skills, to our six-week.underlines the page tothe check out of our range year of increasing profitability success the UK’s of career and experience opportunities. diversified business model. UK, GERMANY & POLAND > Our Results Strong customer relationships have enabled us to quickly identify new areas of demand and growth and ensured that we have the flexibility to quickly adapt. > Our Core Capabilities In 2012 the UK Board’s regional responsibility extended to include ANOVO’s operations in Poland and Germany. This diversification has enabled each country to benefit from expertise and economies of scale allowing the rapid launch of our German operations and facilitating the continued development of our service and capability portfolio across the Group. Our mobile division continues to lead the UK market with an unrivalled range of services and accreditations. An operational re-structure and the continued development of ‘Solution Selling’ will further enhance our profitability. We have been able to build the fulfilment, repair and refurbishment offerings into a suite of services that align perfectly not only to Telco, but also to STB and Smart Meter markets, both of which are key growth areas for 2014 and beyond. 60% UK TAT POLAND < 3 DAYS TELCO MARKET IS GRADE A SERVICE CENTRE SHARE FOR SAMSUNG Students voted us the number one Graduate IS GROUP CENTRE OF Employer in The Times Top 100 Graduate lorem EXCELLENCE REPAIR ipsum survey. StudentsFOR votedLCD number Graduate Key to competitive advantage are the accreditations we gain from manufacturers. ANOVO is now the only Grade A Service Centre for servicing Samsung products in the UK. Between the regions we have also successfully transferred technical expertise, best-practice tools and knowledge management systems working with experts in each region to offer our customers a high quality solution with unrivalled capabilities in each market. We have participated in-and won-a number of new contracts, including a major reverse logistics contract for Telefónica in the UK and a high profile multimedia product repair contract for HP consumer printers, IBM LCD Panels, NC+ repair and refurbishment of STBs, and ZTE Livebox in-warranty repairs. “The local expectations and requirements in Poland meant that this project set-up has been particularly complex. ZTE experienced good cooperation, trust, and professionalism from ANOVO. It is pleasure to work with this team.” IN THE UK, we have installed our tracking & workshop management system inside our customer’s point of sales network in over 400 individual retail stores in order to speed up RMA transaction processing time and provide instant on screen visibility to store staff. MR FU HONGTAO, Poland After-Sales Service Manager, ZTE PROVIDING EXCEPTIONAL SERVICE IN 2014 Overall success can also be attributed to our exceptional bid management process. Using a structured process, we produce high quality, professional tender responses, usually under immense time pressures. This year we have been keen to extend this knowledge to other regions within the Group, ensuring we offer a consistent and comprehensive response to RFQs across Europe and Latin America. Our focus for 2014 is one of exceptional service for both customers and end-users. We aim to do this by focusing on KPI compliance at the highest possible level. This will strengthen our market position, improve processes to eliminate waste and ultimately reduce cost for ourselves, our suppliers and our customers. ANNUAL REPORT // 2013 25 03 Market spotlights EVOLVING SOLUTIONS FOR AN EVOLVING MARKET. In 2013 the Group placed significant investment in the development of innovative new services in buy-back, Insurance Fulfilment and Returns Avoidance. Regeneration activities were consolidated under a Global Business Unit, and new customer contracts were signed across all business segments. ANNUAL ANNUAL REPORT REPORT 2013// ANOVO 2013 \ 27 MARKET SPOTLIGHTS // INSURANCE FULFILMENT In 2012, ANOVO leveraged its capabilities in Telco product repair, refurbishment and regeneration in order to exploit the opportunities in insurance supply chain services. 28ME PER ANNUM BUSINESS REVENUE +160,000 UNITS SUPPLIED PER ANNUM Mobile subscription pred INSURANCE FULFILMENT 3.9bn 2 in > Market Approach > Market Investment In line with increasing demand for insurance solutions, we have strengthened our sourcing capability to include retail and insurance returns as well as new channels for equipment across Europe. The service is offered as both an exclusive or marginal VAT process giving further cost benefits to our insurance customers. All of this has enabled us to further optimise supply lines and strengthen our competitive position in the market. In the coming financial year, we expect further growth with new customers coming on board in early 2014 for device fulfilment and accidental damage repair services; the latter being a natural area from which to support our insurance fulfilment process. Our investment in the service continues, with additional operational resource planned and continued IT investment in innovative web design that aims to make the market simpler for our customers. In turn, customers have recognised that our high quality repair and refurbishment capabilities mean that by sourcing their insurance fulfilment through ANOVO, their business will benefit from the significant savings that refurbished devices can bring compared with new products, without impacting negatively on their corporate reputation. Average smart phone replacement value is €800 In EU Top 5 there is an estimated 35 million mobile phone insurance policies. R m s Mobile subscription predicted to exceed 3.9bn 2017 in Replacement rate every “The EU Top 5 show a Smartphone penetration of 57%, this trend is expected to continue, with tablets also gaining traction in the market.” 18 months creating second-user market for devices. ANNUAL REPORT // 2013 Average 29 MARKET SPOTLIGHTS // REGENERATION 3.9bn 2017 In France, the average time Having deployed our RegenerationReplacement solution internationally – offering services rate every in France, UK, Spain, Belgium, Poland, Chile, Switzerland, Peru and now BrazilANOVO is perfectly placed to serve the rapid growth experienced by the market. in cription predicted to exceed bn 2017 18 months to complete an in-store device buy-back transaction, register, pack, and ship the exchanged unit ready for collection to an ANOVO returns processing site is less than 6 minutes. Average in 20% +1 GROUP REVENUE IN 2013 accesses end-user channel is through . REGENERATION B2C BuyBack Replacement rate every 18 months creating second-user market for devices. MILLION DEVICES AND GADGETS TRADED PER YEAR accesses end-user channel is through €800 0 18 mon creating second-user market for devices. smart phone replacement value is creating second-user market for devices. e t e Replacement rate every Mobile subscription predicted to exceed In EU Top 5 there is an Replacement estimated rate every 35 million mobile phone insurance > The development of B2C sales through Operators’ online shops and policies. online marketplaces B2C BuyBack. 18 months creating second-user market for turnover Regeneration revenue is expected to represent 26% of Group devices. in 2014 driven by: > Market Investment > Market Approach In 2012, the number of Smartphones in use worldwide broke the 1 billion mark, representing a global penetration of 17%. It has taken 16 years to reach this, yet analysts believe that it will only take three years to achieve the next billion. This can be attributed to the increasing popularity of high-end Smartphones and rising penetration of mobile Internet among users, both of which are also responsible for the continued sale of refurbished devices as a cost-effective alternative to new phones - mainly in emerging regions. Refurbished phones provide buyers access to high-end products at lower prices, reduce electronic waste and help manufacturers expand their customer base. 70% of electronic devices can beeconomic hardship, consumers’ desire to update Given device values, continued refurbished technology, and their increasing concern for environmental issues, we expect to add value the Regeneration market to continue its growth in the coming years. and re-trade into Our in-house repair andmarkets refurbishment capabilities make ANOVO a preferred other partner to Network Operators and channelsand Insurers. The Regeneration business has seen its service offering expand with: > Buy-back enriched product categories including tablets, laptops and gaming products > The development of ANOVO’s own web platform, love2recycle, as well as customer web platforms for product buy-back > The development of Insurance Fulfilment programs in new areas > A higher focus on buy-back programs with Operators and large retailers to increase sourcing channels > The reinforcement and development of relationships with Insurers for both sourcing and sales of second hand products > The diversification of sales networks to give a second life to products 70% of electronic devices can be refurbished to add value and re-trade into other markets and channels “The Buy Back program is an example of innovative and demonstrated initiatives that will help us to bring more value to our customers in the LatAm Region, contributing at the same time to building a more sustainable business model. During the last years ANOVO has demonstrated to be a robust and qualified partner of Telefónica International SA. Its expertise, acquired in other device buyback markets, will contribute to maintaining Telefónica’s leading position in the region.” GILLES GIACOSA, Telefónica VP Supply Chain & Customer Services for Latin America ANNUAL REPORT // 2013 31 Model database MARKET SPOTLIGHTS // RETURNS AVOIDANCE in excess of Returns Avoidance application integrated within 160 12 language smart phone, Avoiding returns across a range of electronic devices has become increasingly important to our customers and partners this year. Our Returns Avoidance solution draws on our experience within the industry to regularly achieve ‘save rates’ in excess of 60% for end-users in the first 28 days of product ownership. RETURNS AVOIDANCE > Market Approach Returns Avoidance application integrated within 12 language customer call centre. Returns Avoidance (RA) made great progress this year. We have listened to the industry needs and end-user requirements, and deployed RA services which deliver ROI in excess of 100% every time. We have worked to enhance the profile of our offering both internally - presenting across the Group, and externally presenting to the international markets. Model database in excess of customer call centre. 160 4:1 60% tablet and device variants customer call centre. tablet and device variants > Market Investment The roll-out of RA services is already in progress in the form of in-store RA, online self-service portals, specialised applications and out of warranty handling services, all of which can be customised and are complementary to ANOVO’s MANAGEMENT INFORMATION – REPORTING DASHBOARD existing portfolio of services. We have seen significant momentum of new opportunities across the group which is expected to increase our level ofCHANNEL activity SIMPLE TO USE RA FUNCTIONALITY with both existing and new partners. ONLINE The ANOVO RA Process MANAGEMENT INFORMATION – REPORTING DASHBOARD The business model has also been improved with new modules being added. As a result, in 2013 our UK customers were able to prevent the return of an average 60% of devices that had been considered faulty by the end-user. At an average cost to the customer of £60 per device, plus associated savings to ARPU (Average Revenue Per Unit) and churn, that amounts to a substantial overall saving for our partners. 12 language smart phone, RETURN ON INVESTMENT RETURNS PREVENTED Returns Avoidance application integrated within CALL CENTRE CHANNEL SIMPLE TO USE RA FUNCTIONALITY OUTCOME Diagnostics Context Copy/ Backup Software Update E2E TAT RETAIL Saved ONLINE The number of manufacturers already supporting and validating our diagnostic tools demonstrates our strong expertise in RA. In 2013, we have worked to proactively maximise save rates achieved, keeping customers and end-users satisfied with our service. CALL CENTRE Furthermore, we have developed an innovative management information system which acts as an early warning tool for device faults at product launch, this minimises product recalls for both manufacturers and retailers. Diagnostics Context Copy/ Backup Software Update Exchanged Doorstop or Retail Exchange Repair Fast Repair Content Restore ! RETAIL Fast Repair ANNUAL REPORT // 2013 33 Content Restore MARKET SPOTLIGHTS // SMART LOGISTICS Smart Logistics provides an option to embed repair operations within customer locations, adding value across the entire supply chain. We can report a strong performance of this activity within core reverse hub and repair businesses in 2013. Spiraling costs of refurbishment Spiraling costs of refurbishment parts is driving demand for rapid parts is driving demand for rapid repair across Telco. repair across Telco. Transparent and practical collaboration with our global logistics partners has enabled an integration of repair within the warehousing, delivering 20% reduction in reverse supply chain costs. 72 hour 95% same unit repair completion requires efficient RMA processing and transportation from store, with daily injection into same day multi-level repair. SMART LOGISTICS > Market Approach Technology is evolving rapidly within a competitive market and our customers require faster resolution to customer issues, multi-customer channel support, instant visibility, exceptional customer care and a simple, convenient and reliable way to return products. We take control of the entire reverse and return process; tracking the IMEI at each stage of the process, building the necessary efficient supply chain to avoid customer delay and swap stock costs, and reducing inventory levels for our customers. > Market Investment Integrating market-leading capabilities in repair and logistics can deliver the flexibility and quality required. Repair companies need to deploy expert systems in complex reverse logistics management to ensure each RMA (Return Material Authorisation) opened from within the store, corporate customer site, end-user address or on-line request is repaired within the highest service-level. When it comes to logistics, we do not have all the answers. We do not own a transportation fleet or a global network of warehouses and multiple stocking locations, but through ‘Smart’ partnering we can deliver integrated after sales services models which can make a real difference to our customers. In the last year, ANOVO has transferred technical know-how and repair management systems to partner hub locations in UK and Germany with a total headcount of 60 staff directly employed within the sites to reduce warranty support costs for a leading PC brand manufacturer. This year we expect to double the number of skilled services supplied within partner supply chains, customer sites or retail stores as we continue to evolve smarter and more flexibly for our customers. This is not about repair… this is about ‘Smart’ Logistics. Transparent and practical collaboration with our global logistics partners has enabled us to develop combined logistics and technical service solutions for our customers. An expertly constructed service can reduce TAT, operational costs or inventory levels by up to 20% releasing significant savings within the reverse supply chain or aftermarket support budget of our customers. Spiraling costs of refurbishment parts is driving demand for rapid ANNUAL REPORT // 2013 repair across Telco. 35 MARKET SPOTLIGHTS // PROXIMITY REPAIR We are increasingly asked to manage repair services at the end-user’s immediate point of need. Below we highlight some of the complex proximity repair and point of sales solutions we offer. 60.000 END-USERS MANAGED PER MONTH IN PERU FOR 1 CUSTOMER PROXIMITY REPAIR IN PERU, 90% of customers attended to within 15 minutes, 30 minute wait on Level 1 repairs, instant walk-away loan unit and a 72 hour depot repair. > Market Approach Smartphones and Tablets provide our primary access to the internet, communication and use of every day applications means an increasing need for customers to remain connected. Our operator, retailer and manufacturer customers face fierce competition to provide the latest technology coupled with unrivalled customer service. Consequently, demand for ANOVO to place its services at the end users’ immediate point of need is growing, and we are expanding our range of proximity repair and point of sales solutions. Whether end-users have lost or damaged their product, require help in setting up or configuring their device, need specific hardware diagnostics, or data transfer services, we provide a range of in-store technical skills, tools and backoffice repair services to support their requirements. For our operator customers, this provides a strong positive customer experience. Customers who need support can get an instant ‘walk-away’ solution either through an on-site repair, or as a swap device configured exactly to the end users’ original settings. This level of service is perfectly illustrated by our network in Peru, where we manage over 60,000 end users per month for our customer through a support network of call centres and shops in 20 cities. Demand for these services continues to grow in Latin America and currently 25% of our headcount is deployed in Proximity Repair & support solutions. Customers knowledge of products and inter-connectivity has increased and the need for instant support is becoming a strong differentiator for clients who want to increase market share and drive higher retention and revenue per device. Our in-store network also provides additional resources to promote new offers and marketing of products and services. For another leading network operator in Spain, we have supported a shift in its after sales service model to deliver not only market-leading turnaround times on devices sent for repair, but to also deploy walk-in-repair solutions in selected larger footfall stores within its network. We expect this trend to continue. > Market Investment For our leading brand Manufacturers, visibility on the high-street is more and more important to enhance and widen brand reputation. The provision of additional value-added services at the point of sale - such as technical advice, product selection or integration support, sale of upgraded service and support - can address the needs of an end-user in one visit. This year we opened dedicated stores for a leading mobile and consumer electronics manufacturer. These stores provide technical support and sell related products and accessories. We have plans to add stores in similarly fast growing markets. ANNUAL REPORT // 2013 37 04 Performance OUR FULL YEAR RESULTS CLEARLY REFLECT THE POSITIVE IMPACT OF 2013’s GROWTH STRATEGY. In the Financial Statements that follow we underline the Group’s ability to grow profitably in a challenging economic environment, and within fast-moving, highly competitive markets, whilst continuing to develop innovative new services for our clients. ANNUAL ANNUAL REPORT REPORT 2013// ANOVO 2013 \ 39 FINANCIAL STATEMENTS M€ Sep-12 Sep-12 Sep-13 11 months audited 12 months proforma 12 months audited Revenue 244.3 255.4 315.1 59.7 Purchases and other external charges -109.4 -113.3 -161.3 -48.0 Staff costs -71.1 -74.6 -75.0 Other costs -57.7 -61.0 -1.0 ANOVO consolidated P&L Depreciation Total Costs & Expenses EBIT as a % of revenue Delta M€ Sep-12 Sep-13 Audited Audited Intangible assets 0.5 0.4 -0.1 Tangible assets 19.3 19.0 -0.3 -0.4 Financial assets 2.8 3.8 1.1 -70.0 -9.0 Fixed assets 22.6 23.3 0.7 -1.2 0.4 1.6 -239.2 -250.1 -305.9 -55.8 Inventories 18.7 14.8 -3.9 5.1 5.3 9.2 3.9 Trade receivables 52.3 59.2 6.8 2.1 2.1 2.9 +0,8pts Trade payables 38.3 32.1 -6.3 Tax & social liabilities 16.4 17.9 1.5 ANOVO Consolidated Balance Sheet Delta -1.2 -1.2 -1.8 -0.6 Other 2.7 4.2 1.6 Non recurring result -2.8 -2.8 -2.5 0.3 WCR 18.9 28.1 9.2 Income tax -0.6 -0.6 -0.2 0.4 TOTAL USES 41.5 51.4 9.9 0.7 0.7 1.3 0.6 1.2 1.4 6.0 4.6 Shareowners Equity 11.9 19.1 7.2 -0.1 -0.1 0.0 0.0 Shareowners Current Account 7.5 6.6 -0.9 1.1 1.3 6.0 4.6 Badwill 2.2 2.2 0.0 0.5% 0.5% 1.9% +1,4pts 21.6 27.9 6.3 Non controlling interests 0.3 0.7 0.3 Liabilities for risks & charges 11.5 9.9 -1.5 Debt & Borrowings 16.6 26.6 10.1 Cash -8.5 -13.7 -5.2 8.1 12.9 4.8 41.5 51.4 9.9 Financial result Badwill depreciation Net result - Group Non controlling interests Net result attributable to shareholders as a % of revenue Equity & quasi equity Net debt TOTAL RESOURCES Audited consolidated financial statements ANNUAL REPORT // 2013 41 PERFORMANCE // HIGHLIGHTS In 2014 we continue our strategic plan to diversify the range of services supplied to our international client base. New customer contracts have been signed across all business segments, notably with a strong performance within core reverse hub and repair businesses, and a rapid acceleration of new clients within insurance repair and fulfilment. IN EXCESS OF 70 OEM ACCREDITED WARRANTY REPAIR PROCESSES ACROSS OUR NETWORK OF SITES SUPPORTING 20M MULTI-TECHNOLOGY PRODUCTS HIGHLIGHTS > Key Business Highlights > Further acquisitions are planned in Brazil in 2014 to support the demand for growth from our customers in this region. > ANOVO Deutschland GmbH was launched from its operation in Düsseldorf in August 2013 providing European-wide customer logistics and repair services for Computer and Tablet products. > Regeneration activities were consolidated under a Global Business Unit driving a business in excess of ¤100M annually providing specialised marketing and delivery of innovative multi-channel programs for Operator take-back, B2C buy-back, B2B asset recovery and Insurance fulfilment. > In Spain, a large new contract for the supply of multi-channel integrated Hub and After Sales Services for a market-leading Telco Operator has strengthened ANOVO’s position within the Iberia mobile device returns and repair market. and continued collaboration with IBM for the EMEA-wide screening, repair and warranty management of LCD products. > In France, ANOVO secured a strong foothold in the after sales service market for TV products with the regional contract to service and support spare parts distribution for Philips and its’ after sales service network. > In the UK, ANOVO significantly increased its contract volumes for mobile device insurance repair and replenishment through a diversified client base while consolidating its leading after sales service position with mobile device OEMs such as Samsung and Nokia. > In Switzerland, ANOVO formed a new partnership with a leading mobile device insurance provider, providing swap and replenishment services for lost or damaged mobile phones, tablets and other insured electronic devices. > In Latin America, ANOVO was selected by Telefónica as partner to launch new customer buy-back services in Chile, Peru, Colombia and Brazil, which increases the range of our mobile after sales services already supplied to the Telefónica organisation in UK, Spain and Latin America. > Important new contracts were also secured in the restructured Poland central repair site with warranty accreditation of the Live Box products from ZTE ANNUAL REPORT // 2013 43 PERFORMANCE // HIGHLIGHTS ANOVO’s full year results ending 30th September 2013 show consolidated Group revenue of €315M – 24% increase on 2012 – and an operating profit of €9.2M. E315M E9.2M REVENUE EBIT HIGHLIGHTS > Key Financial Highlights > All subsidiaries posted positive EBIT results reflecting the success of controlled start-ups in Colombia and Germany, the restructuring of our Poland activities to one site and the significant ramp-up of new volumes in Iberia. > The focus on reducing cost and continued investments in productivity linked to an Enterprise-wide IT strategy have yielded positive results. > Despite Non-recurring Expenses related to restructuring costs, strong Net Result increase of ¤4.6M. > Equity and quasi-equity reached ¤27.9M as of September 2013 (+¤6.3M) with Net result and current account conversion to Equity. > Working Capital increased impacted by revenue growth. > Investment in innovative new services in Buy-Back, Insurance Fulfilment and Returns Avoidance have not only secured new contracts within the trading period, but also unlocked significant savings for existing key customers. > Net Debt reached ¤9.0M with increased factoring facilities. Figures based on the fiscal year from 1st October 2012 to 30th September 2013. > Total Revenue of ¤315.1M split regionally as 34% France, 33% UK, 19% Spain, 7% Latin America and 7% Belgium, Switzerland and Poland. > 2014 Outlook > Revenue growth driven in the main by core reverse hub and repair activity and new business in Regeneration and Insurance services. > Group EBIT total of ¤9.2M with all operating subsidiaries achieving positive results. > Financial result increased due to higher use of factoring. > Cash at Bank as of September 2013 amounted to ¤13.7M. Trading for the first quarter of 2014 has started equally as strongly with results to-date exceeding both Revenue and EBIT expectations. The outlook for the full year is for continued growth with the impact of recent acquisitions and new, significant business wins acquired in the first quarter of this year taking a full positive effect. On the strength of its results, projected business plan and market opportunities immediately open to ANOVO, the Board is pleased to confirm that additional funding is being secured to fund planned acquisitions and development of its new services portfolio. ANNUAL REPORT // 2013 45 PRIORITIES 2014 PERFORMANCE // CORPORATE SOCIAL RESPONSIBILITY Our corporate social responsibility achievements in 2013 reflect our promise to provide innovative and cost-effective solutions that protect the reputations of our customers so that they are trusted and appealing to consumers across the world. CORPORATE SOCIAL RESPONSIBILITY 84% of EU consumers claim that a product’s environmental impact is an important consideration when buying(1) 93% of consumers would be more loyal to a company engaged in CSR(2) (1) European Commission’s report: Attitudes of Europeans towards building the single market for green products. July 2013 (2) 2013 Cone Communications/ Echo Global CSR Study > Reactivity We combine technological know-how with a passion for the industries in which we operate. This allows us to develop innovative services that suit the products of tomorrow. > Global vision/ Local impact SINCE INCEPTION, ANOVO HAS FOCUSED on developing services that have a positive impact on our own and our customers’ bottom line, yet at the same time help to shape a better and more sustainable environment. The following values shape our Group approach to CSR. > Quality & Transparency We aim for excellence concerning customer satisfaction. We give ourselves the means to do so because we fully comprehend the life cycle of digital products, because we are transparent throughout all processes and methods which are acknowledged by major players of the market, and because we offer intelligent and tailor-made technological solutions. > One Team To develop our quality solutions, experts are needed as well as teamwork, we invest considerable resource on staff training and development both internally and externally. We also keep an open workspace, based on teamwork that encourages and rewards continuous improvement and value of creativity. > Community Spirit We strive to support the communities in which we work and since our business affects almost everywhere in the world, we encourage our people to support charities across the globe. We are a group and are proud of it. We want to share our best practices, our best solutions whilst looking for the most adequate solutions locally. > Sustainability We want to take part in the reduction of environmental impact by supporting innovative solutions for second life - regeneration of electronic products, which are becoming a major development leverage for ANOVO. We always aim to build our development on a correct financial, human and environmental balance. CSR CASE STUDY In Q1 of 2013 over £35k was raised through a mobile phone recycling scheme launched by Three and ANOVO in the UK. The money was raised through a project collecting handsets across Three’s operations in Maidenhead and Glasgow and mobile phones contributed by Three’s partners. £35K “ANOVO has shown great commitment on this project and I am excited that it has been such a success.” PATRICK BINCHY, Business Operations Director at Hutchison 3G ANNUAL REPORT // 2013 47 Editorial design: Piaton&associés Design and production: Aurélie Bert, Piaton&associés Photo: Getty Images, ANOVO Printing: Broadland Digital ANNUAL REPORT 2013 CORPORATE OFFICE 22 Quai Gallieni F-92150 Suresnes France ANNUAL REPORT 2013