Vusion · EURONEXT:VU
Vusion — Investor Day (November 2022)
171 slides from Vusion's investor day presentation, Nov 9, 2022
Slide 1: VUSION '27: A VUSION for the future
VUSION ‘27 A VUSION for the future 2022-2027 Strategic Plan CAPITAL MARKETS DAY NOV. 9, 2022
Slide 2: Disclaimer
Disclaimer Certain information included in this presentation are not historical facts but are forward-looking statements. These forward- looking statements are based on current beliefs, expectations and assumptions, including, without limitation, assumptions regarding present and future business str
Slide 3: Agenda
Agenda Market & Technology Global Growth Strategy & Products & VUSION ’27 2.00pm – Welcome & 4.30pm – 3.25pm – R&D Strategy: Making the Physical The €2B+ Global Growth Plan 2.05pm Agenda 4.45pm 3.35pm Store a Digital Asset 2.05pm – SES-imagotag 2017 – 2022: The 4.45pm – Europe: Elevating our histori
Slide 4: The End of the Beginning 2017-2022
2017-2022 The End of the Beginning
Slide 5: SES-imagotag key milestones
SES-imagotag key milestones 35K stores incl. 10K on VUSION Platform >4K stores in America VUSION 350+ retailers ESL Acquisitions: Cloud Platform in 62 countries Inception World Imagotag, Findbox, IPO leader PDI, MarketHub USA + China >15% VAS ESL Invention Euronext Paris 1992 2006 2012 2015 2018 202
Slide 6: Global leader in IoT & digital solutions for physical retail
Global leader in IoT & digital solutions for physical retail 19 Regional Hubs 630 employees 62 countries 35,000 stores 10y-Cagr 25% pa 350+ retailers €600m+ ROW 7% North America €600m+ sales 18% Europe 75% 2002 2005 2010 2015 2017 2018 2019 2020 2021 2022e 6
Slide 7: Best performing retailers choose SES-imagotag
Best performing retailers 350+ clients choose SES-imagotag ~30% of the Top250 ~50% of the Top50 50 Customer NPS 2022 (Tech avg. = 35) SES-imagotag customers outperform: +19% 5-yr growth vs. 9% avg. Top250 7
Slide 8: Our Solutions digitalize physical retail
Our Solutions digitalize physical retail Real-Time Pricing Optimized Picking Shelf Monitoring Automation & Replenishment & Analytics Digital In-Store In-Store Mobile Advertising Search & Flash Experience 8
Slide 9: 2017-22: innovation acceleration
2017-22: innovation acceleration ESL DSS Cloud Digital Shelf Solution VUSION-E VUSION OS Captana AI Captana AI Engage Engage Engage In-Store Fulfillment In-Store Fulfillment In-Store Fulfillment Pulse Pulse Pulse Pulse Infraless Infraless Infraless Infraless VUSION VUSION VUSION VUSION VUSION Cloud
Slide 10: Digital Shelf System
Digital Shelf System The technology backbone of store digitization Price & Promo Workforce Management Cloud Agility Associate Empowerment Accuracy IoT In-store Navigation Connectivity Intelligence Value-Based Replenishment ESL + Sensors Ultra-Precise Location Shelf Data Product On-Shelf Availability
Slide 11: 2017-2022 key figures
2017-2022 key figures Cloud ESL Installed base in million units ~50 2017 2022e SALES in €m 153 600+ 18 5-year CAGR% 20% 31% % International 55% 90% VAS % 8% ~16% in € / ESL / yr 0.1 0.3 0 Total ESL 160 350 Cloud-ESL - 50 2017 2019 2022 EBITDA 4% 9-10% In % of total ESL 0% 7% 15% NPS NA 50 People 370
Slide 12: Global supply chain
Global supply chain Weekly ESL production 2022 Cumulated ESL qty total 1.5 M pcs 350 M pcs SES workforce: Ramp-up # TAG & EPD: H2/2022 2,350 MEXICO CHINA SES workforce: Chihuahua Chongqing # TAG: 600 VIETNAM Ho Chi Minh City 300 Total Planned x4 Industrial ~3,000 staff Capacity at SES-imagotag´s 70
Slide 13: Building for the long-term
Building for the long-term 2014 NEW - 2022 Target 2023 Underway Quality Environmental Cybersecurity Management Management Management 14
Slide 14: Top 1% of all Ecovadis rated companies
SES-imagotag NOW IN the Top 1% of all Ecovadis rated companies SES-imagotag ECOVADIS rating 80 75 PLATINUM Top 1% 72 Theme Scorecard GOLD 67 Top 5% Environment 80/100 65 Labor & Human Rights 80/100 Sustainable Procurement 80/100 Ethics 80/100 SILVER 56 Top 25% NA 2019 2020 2021 2022 15
Slide 15: Our shareholders
Our shareholders 2018 NOV 2022 75% 12% BOE SESIM Smart Retail 42% BOE Placements Unbundling 25% 46% Other Other investors investors 16
Slide 16: 2022-2027: A VUSION for the future
2022-2027 A VUSION for the future
Slide 17: Physical Stores Under Pressure
Physical Stores Under Pressure Inflation Recession Online shift Price war Consumers shift PHYSICAL Energy cost STORES Store traffic decrease Labor cost / shortage Unfavourable Profits & Market Bankruptcies economics cap decrease & stores closings 18
Slide 18: Consumer expectation changers
Consumer expectation changers 19
Slide 19: E-Commerce Global Growth
E-Commerce Global Growth E-commerce in % of total retail sales 30-40% In 5 years 15-20 % +10-20% per year E-commerce will represent 60% of total retail sales added in 2022-27 (5 years) +$2.3tn E-commerce Brick & Mortar 20
Slide 20: Falling retail space
Falling retail space In the United States alone, more than 100 retailers have declared bankruptcy in the past three years, and about 30,000 stores closed in the same period according to McKinsey&Company Source: Euromonitor 21
Slide 21: High social risks associated with current retail challenges
High social risks associated with the current retail challenges -50% Long-term potential negative impact on retail employment due to on/offline substitution and stores closings 22
Slide 22: High environmental risks
High environmental risks If it continues to be based primarily on a direct-to-consumer ~2000B$ 330M sqm 0.5 GT logistics model, the rapid Incremental E-commerce Need for new warehouses CO2 emissions to build growth in E-commerce revenue in the next 5-7 years and fulfillment centers the new infrastru
Slide 23: Risk of reduced access to capital
Risk of reduced access to capital to fund physical retail’s transformation journey Top 20 Listed Retailers Market Cap ($bn) 3,626 -33% 2,427 2021 2022 24
Slide 24: Breaking the negative cycle?
Breaking the negative cycle? Traffic & sales Stores less decrease profitable Shopper experience Lower investments Negative Social & Environmental Impact 25
Slide 25: Breaking the negative cycle?
Breaking the negative cycle? Stores less Making store more Better business model Traffic & sales decrease profitable automated, data- & Profitability driven and connected Shopper Great experience Lower experience investments & better jobs Investments in attractive and ☺ omnichannel stores Negative
Slide 26: Market Trends, Challenges & Opportunities
Mark Ibbotson Retail Expert Former EVP Realty & Central Operations at Walmart Former COO at ASDA Sr. Advisor at McKinsey Market Trends, Colin Peacock Challenges Retail Expert Group Coordinator at ECR Group & Opportunities Former Procter & Gamble Top Executive Roy Horgan SEVP Strategy, Marketing & Co
Slide 27: A VUSION for the future
2022-2027 A VUSION for the future
Slide 28: Breaking the negative cycle!
Breaking the negative cycle! Stores less Making store more Better business model Traffic & sales decrease profitable automated, data- & Profitability driven and connected Shopper Great experience Lower experience investments & better jobs Investments in attractive and ☺ omnichannel stores Negative
Slide 29: A bright future lies ahead
a bright future lies ahead. The potential value of physical stores is vastly underestimated 30
Slide 30: Stores digitization at the top of the agenda
Stores digitization more than ever at the top of the agenda Inflation Pricing agility (ESL) Labor cost Productivity (ESL, ISF) Our solutions have never Demand slow-down Availability (CAPTANA) been so strategic and Food supply chains Brand activation (ENGAGE) crucial to strained retailers Climate cri
Slide 31: Intelligent shelf labels will become the backbone of store digitization
Intelligent shelf labels will become the backbone technology of store digitization ESL installed Base # of units in Bn TAM 10 bn Key enabler of store units efficiency & shopper engagement Drivers of adoption ESL on a long-term - Inflation Intelligent and agile pricing 2.3 high growth trajectory In-S
Slide 32: Our vision of the future winning retail model
Our vision of the future winning retail model Hybrid & Store-centric 33
Slide 33: Connected Store Collaborative Cloud
Brands Partners End-to-End Supply Chain Traceability Chain-level functions Connected Store Unified Waste Category Management Connectivity Management Supply Chain Collaborative Cloud Wi-Fi, BLE, IoT, e-Commerce NFC… Marketing / CRM … Frictionless Checkout Real-Time Store & Consumer Data Local product
Slide 34: Technology can reboot stores operating model
Technology can reboot Store digitization has the potential stores operating model to yield 2-3 points of incremental operating margin Retail Media Data Local Monetization On-Shelf E-commerce Availability Retailer Labor cost Margin Price Optimization +2-3 pts Retail Profitability 35
Slide 35: Create value across the entire value chain
… and create value across the entire value chain Retail Media Data Monetization Local E-commerce On-Shelf Retailer Availability Margin Price Labor cost Optimization +2-3 pts Retail + CPG Targeted CPG Promotions Merchandising & Coupons Compliance Margin On-Shelf Availability +2-3 pts Supply Chain opt
Slide 36: Stores are here to stay
Stores are here to stay Will remain >60% of retail 5-sense shopping Brand experience Human Local E-commerce Better jobs Communities well-being 37
Slide 37: Technology enabled stores are efficient e-commerce centers
Technology enabled stores are efficient sustainable e-commerce centers In-Store Ultra-Fast Express Returns Low Fulfilment Pick-up Delivery & Service Carbon 38
Slide 38: Stores are the future of sustainable e-commerce
Stores are the future of Sustainable E-commerce Most goods are ~20M 1 Store < 3 miles stores worldwide per 400 persons from most consumers Stores could deliver in the future >50% of total online sales, avoiding up to 0,5 GT unnecessary GHG emissions 39
Slide 39: Walmart puts stores at the heart of e-commerce
Walmart is putting stores at the heart of its E-commerce strategy Instore fulfilment Pick-up & Express delivery 3,700 80% $25 Bn stores of total fleet sales in 2022 40
Slide 40: IKEA goes phygital
IKEA goes phygital “By including stores in our last mile and fulfilment network we create a win-win situation. Shipping online purchases from the out-of- town stores means faster and cheaper deliveries, with lower emissions, than by shipping from logistics centers.” 41
Slide 41: VUSION'27 Store Digitization
VUSION’27 More profitable and efficient stores Productivity / cost / OSA / Local E-commerce Business model upgrade (data + retail media) The Consumer experience Store Better service & store experience Seamless hybrid commerce / Local, fast, fresh Digitization Business Brand-retailer collaboration &
Slide 42: VUSION '27 - Our Transformation Plan
VUSION ‘27 - Our Transformation Plan Five Strategic Programs G1 C1 VAS TOP ESG Value Added Operational Growth & Customer Positive Software & Performance Leadership First Services Impact → 30 focused transformation projects (already underway) 43
Slide 43: VUSION '27 G1: Growth & Leadership
VUSION ‘27 Transformation Plan G1 Growth & AMBITION 2027 TARGET Leadership Make VUSION the Global REV €2.2B (40% in US) N°1 Cloud IoT platform 30% CAGR 1B Connected IOT devices 44
Slide 44: VUSION '27 C1: Customer First
VUSION ‘27 Transformation Plan C1 Customer AMBITION 2027 TARGET First Deliver outstanding customer NPS 70 value, experience and ROI 45
Slide 45: VUSION '27 VAS: Value Added Software & Services
VUSION ‘27 Transformation Plan VAS Value Added AMBITION 2027 TARGET Software & Shift to a Cloud & VAS-centric VAS 30% Services offering and business model 46
Slide 46: VUSION '27 TOP: Operational Performance
VUSION ‘27 Transformation Plan TOP Top AMBITION 2027 TARGET Operational Drive an efficient business and EBITDA 22% Performance operating model through fully digitized operations and superior supply chain 47
Slide 47: VUSION '27 ESG: Positive Impact
VUSION ‘27 Transformation Plan ESG Positive AMBITION 2027 TARGET Proven contribution to a Top ESG Ratings Impact low-carbon and positive retail Half-way to Net-Zero Great place to work E-NPS 50-70 48
Slide 48: Driving sustainability in physical retail
Driving sustainability in physical retail: Our shared purpose and ESG commitments
Slide 49: ESG Plan - Creating shared value
ESG Plan - Creating shared value 01 02 03 Roadmap for Great Place Long-term Positive Retail to Work Stakeholder Value Contribute to retail’s Net-Zero Proactive human capital World class governance target development standards Develop ultra-low carbon IoT Long-term motivation Measurable long-term dev
Slide 50: Our shared purpose
Our shared purpose We invent IoT and digital technologies that create a positive impact on society by enabling sustainable and human-centered commerce. 51
Slide 51: Retail has the biggest impacts on our lives
Retail is the largest industry with the biggest impacts on our lives >20% 15% Global Global GDP Jobs 52
Slide 52: Retail supply chains and GHG emissions
Retail supply chains are responsible for large part of the world’s GHG emissions Construction Paper & Packaging Transportation Stores, distribution & E-commerce packaging, shelf Up/downstream logistics, fulfillment centers labels, POP communications last-mile delivery Energy Waste Supply chain Heati
Slide 53: Sustainability a top priority for retailers
Sustainability has become a top priority for retailers 66 Global retailers setting science-based targets each year (# of companies) 5 2018 2021 54
Slide 54: Retail digitization role in sustainability agenda
Physical retail digitization has an important role to play in the world’s sustainability agenda Enabling Influencing Local & Reducing Responsible Low-Carbon Food Consumption E-Commerce Waste at the Shelf Fostering Enabling Local for Local End-to-End Paperless Production & Supply Chain Commerce Consu
Slide 55: Retail digitization at the core of climate agenda
Putting retail’s digitization at the core of climate agenda Physical retail digitization has an important role to play in the world’s sustainability agenda 56
Slide 56: Building our Net Zero contribution plan
Building our Net Zero contribution plan 2.5 KG / ESL EQ. CO2 No servers No AP/Cabling 1. Decarbonizing Refurbish our products Battery less, materials & supply chain 2. Decarbonizing Retail On-Premise ESL Cloud Infraless 2nd life VUSION-E Paperless System Local eCommerce SCOPE 1/2/3 Waste CARBON FOOT
Slide 57: Building our Net Zero contribution plan
Building our Net Zero contribution plan VUSION ‘27 2.5 KG / ESL EQ. CO2 Ambition No servers 1. Decarbonizing No AP/Cabling our products Refurbish -30% / -40% Battery less, materials & supply chain Local 2. Decarbonizing eCommerce Retail Potential carbon emissions avoided On-Premise ESL Cloud Infrale
Slide 58: ESG Plan - Creating shared value
ESG Plan - Creating shared value 01 02 03 Roadmap for Great Place Long-term Positive Retail to Work Stakeholder Value Contribute to retail’s Net-Zero Proactive human capital World class governance target development standards Develop ultra-low carbon IoT Long-term motivation Measurable long-term dev
Slide 59: Our people
Our people 3% Generation Z 59% Millennial 630+ 19 43 37 33% Generation X People Countries Different Average age nationalities 5% Baby Boomers 33% 30% 25 9% Women Beneficiaries of Employee Employee Attrition 40% new recruits Shareholding Program NPS We support 40% Board of Directors 3% of attrition H
Slide 60: Great place to work program
Great place to work program 2017 2022 2027 Post-acquisitions integration Well being at work Diversity & inclusion Employee shareholding HR digital transformation Global talent acquisition Employee experience Women fast-track Maternity and parenthood ’22 Achievements ’27 Targets 40% women recruited 5
Slide 61: ESG Plan - Creating shared value
ESG Plan - Creating shared value 01 02 03 Roadmap for Great Place Long-term Positive Retail to Work Stakeholder Value Contribute to retail’s Net-Zero Proactive human capital Governance standards target development Measurable long-term Develop ultra-low carbon IoT Long-term motivation positive impact
Slide 62: ESG Governance
ESG Governance INTERNATIONAL ADVISORY BOARD for global retail sustainability transparency and Peter Brabeck-Letmathe Yanshun Chen Viviane Reding Candace Johnson Franck Moison Hélène Ploix consumer protection Chairman Emeritus of Nestlé Chairman Former EU Commissioner Chair of Pechel Industries Board
Slide 63: Driving sustainability in physical retail
Driving Peter Brabeck-Letmathe sustainability in Chairman Emeritus of Nestlé & Chairman of the International Advisory Board for a Positive & physical retail Sustainable Retail 64
Slide 64: Technology & Products
ses imagotag Technology & Products |
Slide 65: Making the Physical Store a Digital Asset
Technology & Products Making the Physical Store a Digital Asset
Slide 66: International R&D team
International R&D team R&D excellence centers France / Paris (Cloud, IoT) Austria / Graz (IoT, Radio, Display, NB IoT) Germany / Ettenheim (Computer Vision, A.I., Sensors) Ireland / Cork (Big Data Analytics) Croatia / Zagreb (IoT) Taiwan / Tainan 200+ People (Display) 30% of global staff US / Chicag
Slide 67: Our Core Expertise & Capabilities
Our Core Expertise & Capabilities Displays IoT & Edge Connectivity Cloud CV & AI Big Data Ultra-low High Inter- Security Real-time power scalability operability 68
Slide 68: Cutting-edge tech to digitize physical retail
Cutting-edge tech to digitize physical retail Big Data Cloud & Analytics CV / AI IOT & EDGE Display Connectivity Technologies ECOSYSTEMS PRODUCTS TECHNOLOGIES 69
Slide 69: Strongest IP Assets
Strongest IP Assets IP Portfolio Value High Number of patents per technology IoT 211 Display 118 Mid Cloud & SaaS 104 >110 500+ CV & AI 62 active active Patent Patents Connectivity 43 Families Low Low Mid High Freedom to Operate 70
Slide 70: Making the physical store a digital asset
Making the Physical store a digital asset Requires IOT technologies (ESL, Cam, Sensors, …) Making the store more: Wi-Fi, HF, BLE, 360° Cellular Connectivity cameras Data-driven Automated 3-rd party IoT Scan & Go Connected devices Collaborative Pick-to-Light Advertising Stock-to-Light Interactive Peo
Slide 71: Why is retail digitization so complex technically?
Why is retail digitization so complex technically? Massive Ultra-Low Security Affordability Scale Energy Thousands of stores Long lifetime devices Huge amounts High Capex of critical data in vs. Billions of SKUs, High data reliability the cloud devices and shoppers and accuracy Low margin business 7
Slide 72: SES-imagotag is preparing the next IoT revolution
SES-imagotag is bringing the most powerful solutions to retailers’ key problems and is preparing the next IoT revolution 73
Slide 73: Devices & Sensors
Devices & Sensors Smart Labels Cameras & Sensors Digital Signage 74
Slide 74: Display tech: Smart paper vision
Display tech Smart paper vision Next Gen LCD Display Material Production E-paper Bar-/Stripe displays driver IC research engineering 4-color / 7-color Large format displays (Epaper module (Automation, Full-color / Industrial integration composition) Quality) grade EPDM LOW POWER COLOR & IMPACT ENGIN
Slide 75: Lower environmental impact IoT
Lower environmental impact IOT Eco-friendly Design Repairability & 2nd Life enablement Recycled materials Waste reduction (fewer components & materials) Energy efficiency Battery less 76
Slide 76: First Retail IoT Hub enabled by Connectivity
First Retail IoT Hub enabled by Connectivity Ultra-Low Power RF Infraless Built on decades of RF experience, we Native VUSION OS integration with are constantly improving our protocol and leaders in the Wi-Fi Industry access points, as well as exploring new (Aruba, Cisco, Extreme, Huawei, Lancom, co
Slide 77: Let's talk about VUSION
Let’s talk about — ouUc vusion
Slide 78: Building the largest Retail IoT Cloud platform
Building the largest Retail IoT Cloud platform 10,000+2 50M+ 3Bn+ 99.99% Stores IoT Devices IoT Health checks Availability daily 30% of installed base 79
Slide 79: Building the next retail data cloud & analytics platform
Building the next retail data cloud & analytics platform Cloud Peer Analysis Serverless elastic Cloud supporting Real-time store to store hundreds of millions of devices and performance, profitability sensors, enabling unrivaled agility, & comparison scalability, top security and + recommendations p
Slide 80: IoT: deep hardware & software integration
IoT is the new world of deep hardware & software integration 81
Slide 81: Scalable, Secure, Open Cloud-to-Edge IoT platform
Retail digitization requires a Scalable, Secure, Open, Cloud-to-Edge IOT platform › Manage millions of connected IOT devices across Retail SAAS applications entire stores fleet Cloud VUSION OS (Cloud) › Operate at any point in time multiple generations of hardware and ensure consistency across the e
Slide 82: VUSION OS cloud-to-edge software
VUSION OS cloud-to-edge software manages and upgrades hardware from the cloud Cloud to Edge IoT Device Management Display Performance High-Speed Data Transfer Management Advanced Security Power & Lifetime Management Interoperability 83
Slide 83: VUSION OS enabled the infraless breakthrough
VUSION OS enabled the infraless breakthrough Infraless allows ESL deployment leveraging existing WiFi infrastructure VUSION OS embedded in 3rd-party WiFi infrastructure Smart Co-existence patented solution ensuring no interference Open / interoperable Easy and low-cost solution. 2017 2018 2019 2022
Slide 84: Next Gen Retail IoT in pursuit of perfect
Next Gen Retail IOT in pursuit of perfect 1st Unified In-Store 1st Open, Secure & 1st Sustainable IOT Hub Standard-based IOT platform Need large and open eco- platform No more disposable systems to drive cost down and batteries Providing long-term IP security foster Low carbon hardware and highest d
Slide 85: Innovating beyond Retail
Innovating beyond Retail 19°C Healthcare Office signage Industrial Logistics 86
Slide 86: CAPTANA Shelf Transparency Delivered
CAPTANA Shelf Transparency Delivered
Slide 87: Absence of data is one of the biggest problems
Absence of data is one the biggest Promotion + Promotion Execution Trans- actional Date problems Shopper CRM Heatmaps A lot of data exist but the two missing puzzle pieces are real time shelf and real time item level data Captana delivers the last missing data Online Loyalty Shopping Cards 88
Slide 88: Addressing a trillion dollar problem
Addressing a 1 Trillion dollar problem 24% 4-8% Of Amazon’s Revenue can be attributed to Retailers lose on average 4 to 8 % customers who first tried to shop in stores but of their annual sales due to OOS found stores OoS according to IHL 39% 13 End in ”lost sales” because items From a shopper persp
Slide 89: Captana: holistic out-of-the-box sensor fusion system
Captana – is a holistic out of the Box Sensor Fusion System Sensors Full Cloud based Empower the Exchange the data + Cameras Analytics + CV + AI Associates with the leading ERP + Capabilities on the store floor with Forecasting & prioritized tasks Replenishment Systems 90
Slide 90: Automated Shelf Monitoring
Automated Shelf Monitoring 91
Slide 91: Captana AI + computer vision key functionality
CAPTANA AI + COMPUTERVISION KEY FUNCTIONALIY Transforming Pictures Into Structured Data Processing of image data in the Captana Cloud using artificial intelligence, machine learning and computer vision Out of Plano- SKU Name Brand Shelf Stock Miss-placed gram Promotion 100180400 Milch 3,8% Danone Ye
Slide 92: Global expansion
GLOBAL EXPANSION Transparent SKU - More than 1. Mio SKUs monitored daily Captana runs already in more than 250 Stores 38 active POCs with Probability of >70% in the Sales Pipe 82 out of our 350 existing customers in advanced talks 93
Slide 93: German project
GERMAN PROJECT Let's have a look into one of Germany’s largest Grocery Retailer 94
Slide 94: Significant improvement after 6 months
Significant Improvement Already After 6 Months On-Shelf Availability OK OoS WP D W M Q HY Y + 3% 98.5 98.0 OSA 97.5 97.0 96.5 96.0 95.5 95.0 Yesn 22 Feb 22 Mar 22 Apr 22 May 22 Jun 22 23.02 07.04 12.04 20.05 GO Installation Using Captana Dashboard Installation Quickboard-TV Weekly Report via E-Mail
Slide 95: Examples for Process Optimization
Examples for Process Optimization Time analysis Analysis – time slot which needs special attention from the in-store supply chain associates Optimizing the work 2,6 - 3 % OOS 3 - 5 % OOS schedules With Captana the work scheduled gets optimized to have the associates available when needed 96
Slide 96: France roll out
FRANCE ROLL OUT Strong improvements at Monoprix in France 97
Slide 97: Monoprix
MONOPRIX
Slide 98: Captana shelf viewer screenshot
stot FILTRES 1X4 X80 MELITTA Brand MeurTa om 1006508200504 sk 4008508700504 Shelfviewor Slot Data Shett ry Level 7 Facings ° 008 Status ut of shel Out of Shelf since 169.2022, 1230 jorthly Reverie NA Monthly Margin NA. Current Out Of Shelf Loss Lost Revenue NA. Lost vargin NA Monthly Out Of Shelf Lo
Slide 99: Instant fast results and impressive improvements
Instant + fast results and impressive improvements Better customer satisfaction (+30-40 NPS) +1.9 pt in sales (CPG – Food in cpatana activated categories) 12.000 cameras / ROI 100 stores Significant cost reduction < 1.5 Yr 40,000 working hours Significant OSA improvement +3% higher availability 100
Slide 100: Strong business improvements per store
Strong Business improvements per store Increase in Increase in Elevated Customer Labour Efficiency On-shelf Availability Experience Resulting in 1-3 FTE +4% on avg. +30-40 NPS 2% + Of store assistant time More products available on Fully-stocked as well as Incremental sales allocated to higher value
Slide 101: Cost per Euro of Demand Relative to OSA
Cost per Euro of Demand Relative to On-shelf Availability (OSA) Optimal OSA Rate Total costs without Captana OSS costs Waste costs 86 88 90 92 94 96 98 100 % OSA Perfect Abundance 102
Slide 102: Cost per Euro of Demand Relative to OSA
Cost per Euro of Demand Relative to On-shelf Availability (OSA) Optimal OSA Rate Total costs 3% OSA with Captana OSS costs leads to higher Waste costs Revenue and less waste because of better and real time data points Less Waste More Revenue Less Waste cost Higher Availability Higher NPS 86 88 90 92
Slide 103: Technology will likely double store profitability
Technology will likely double store profitability. 1-2% 5-9% 0.5-1% 1-2% 2-4% 2-4% -2-3% Current Labor In-store labor Inventory Back office Customer Future EBIT EBIT' margin headwinds automation management automation Expierence margin potential 20% increase Warehouse- Reduction in 10% reduction Use
Slide 104: Captana highest impact
Captana 1-2% 5-9% highest Impact 0.5-1% 1-2% Warehouse to shelf automation 2-4% 2-4% Reduction of shrinkage Next Generation volume by 20% through Cameras advanced analytics Supply Chain -2-3% Optimizations Current Labor In-store labor Inventory Back office Customer Future EBIT EBIT' margin headwinds
Slide 105: Strong growth in front of us
Strong Growths in front of us 2027 200 Mio SKU monitored transparent SKU 2023 er 1,5 Mio Temperature Motion Sensor e inventory + Door Sensor SKU monitored 106
Slide 106: Digital Shelf Ambition
Digital Shelf Ambition Wi-Fi, HF, BLE, Cellular Connectivity 360° cameras 3-rd party IoT Scan & Go devices Pick-to-Light Advertising Stock-to-Light Pricing Sensing Automation Inventory, Motion & Temp Planogram Out-of-Stock Integrity Detection 107
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Slide 108: Capturing pictures and transforming them into structured data
Capturing pictures and transform them into structured data. Using Ultra Low Power Consumption Cloud Connected Camera for permanent Shelf Monitoring.
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Slide 112: Real time item level inventory
MAKING ALL INFORMATION AROUND THE SKU TRANSPARENT REAL TIME Combining camera information with real time inventory 004 ITEM LEVEL INVENTORY COUNTER
Slide 113: Real time item level inventory counter
REAL TIME 003 ITEM LEVEL INVENTORY COUNTER
Slide 114: Real time item level inventory counter
REAL TIME 002 ITEM LEVEL INVENTORY COUNTER
Slide 115: Real time item level inventory counter
REAL TIME 001 ITEM LEVEL INVENTORY COUNTER Minimum Order Value reached, Info send to Associate.
Slide 116: Real time item level inventory counter
REAL TIME 000 ITEM LEVEL INVENTORY COUNTER Minimum Order Value reached, Info send to Associate.
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Slide 118: Digital Shelf System: patented products
PATENTED PRODUCTS CAPTANA CAPTANA ShelfEye Counter Perfect view for the perfect shelf measuring Digital Ultra precise shelf compliance, OoS Shelf Real time inventory and throughput System CAPTANA VUSION StoreEye 360 Electronic Shelf Edge Labels Perfect view for the Ultra precise perfect store measur
Slide 119: Delivering Shelf Transparency
Mark Ibbotson Retail Expert Former EVP Realty & Central Operations at Walmart Former COO at ASDA Sr. Advisor at McKinsey Delivering Shelf Colin Peacock Retail Expert Transparency Group Coordinator at ECR Group Former Procter & Gamble Top Executive Michael Unmussig SEVP & CEO - Captana 120
Slide 120: ENGAGE: The Next Big Digital Media is the Physical Store
ENGAGE The Next Big Digital Media is the Physical Store
Slide 121: Are retailers leveraging the full potential of foot-traffic?
Are Retailers Leveraging the Full Potential of their Foot-Traffic? 122
Slide 122: Delivering the right message when it matters most
Delivering The Right Message, When It Matters Most Awareness 82%* of (TOFU) Shopper Marketing $$ purchasing decisions are Consideration made while (MOFU) in a store Trade *Study done over 3,000 shoppers Conversion Promotion $$ (BOFU) Decisions happen here, at the shelf Marketing Funnel 123
Slide 123: Global advertising spend $866B, 60% digital
Global Advertising Spend = $866B 60% is Digital Why? Digital campaigns are targeted, data-rich and automated across multiple touchpoints.. Evolving Demographic and Shopper Journey Targeted + Reach + Transparency + Control Analytic / Data Driven (Attribution) Automated / Programmatic Learning (A/B, I
Slide 124: Untapped potential of in-store foot traffic
The untapped potential of in-store foot traffic 30M 30M $20 daily missed On-demand TV visits Impressions CPM Price On average, 30 million people visit retails stores in the US, every day. 125
Slide 125: Creating new digital touchpoints at the shelf
Creating New Digital Touchpoints At The Shelf Run Digital Campaigns, Enable Interactions, Instantly Measure Results & Monetize Foot Traffic, In Your Store 126
Slide 126: One single solution
One single solution to: Run Dynamic Enable Interactions Monitor the Monetize Campaigns In-store In-Store Impact in Real-time Your Aisles With digital content delivered at the Through QR codes / NFC to engage Measure the real-time impact of Leverage retail media ad spend shelf, on schedule, automatic
Slide 127: The Digital Endcap Solution
The Digital Endcap Solution Physical meets digital Display digital campaigns at prime locations in store Capture proof of play and on-shelf availability Automate price management and marketing campaigns PUBLISHER + Monitor the impact of in-store promotions, in real-time, with 360º insights and
Slide 128: ESLs are in-store opportunities for engaging customers
ESLs are In-Store Opportunities for Engaging Customers Dynamic Sponsored Price Badge Flashing Sponsored Content QR/NFC 129
Slide 129: Engage
Engage • Track Campaign Execution In- store, Shopper Engagement and Sales Uplift • Advertise through Promotional or Brand Callouts on Labels • Offer Rich Product Content via ESL+Smartphone Interactions • Guide Shoppers to their Products with Store Search and Flashing Capabilities 130
Slide 130: The Digital Endcap Solution
The Digital Endcap Solution Display digital campaigns at prime locations in store Capture proof of play and on-shelf availability Automate price management and marketing campaigns Monitor the impact of in-store promotions, in real-time, with 360º insights and improve on-shelf availability, and campa
Slide 131: Proof Points
Proof Points EUROSPAR MONOPRIX EUROSPAR MONOPRIX + WINE ACTIVATION + GARNIER OLIA END CAP + L’OREAL REVITALIFT Wines Cosmetics Sweets & Candies Cosmetics Upsell Trial with Engage With and Without Promotion Price Promotion on higher value category Price Promotion DESCRIPTION Omnichannel Campaign Bran
Slide 132: Monetizing prime locations for ads with VUSION Engage
Monetizing Prime Locations for Ads with VUSION Engage VUSION Engage for CPG brands VUSION Engage VUSION = for retailers Engage Cost-Effective & Targeted = Access to Shoppers New Revenue Stream from Retail Media Transparency of In-Store Campaign Execution For For Digital Touchpoint In-store Retailers
Slide 133: VUSION Engage: one single solution in store
Brands are stories unfolding across all customer - Jonah Sachs, Author of “Winning the Story Wars” VUSION ENGAGE, is one single solution in store … Run Digital Campaigns Retailers to create a new Brands to leverage a Instantly Measure Results Revenue Stream from Cost-Effective & Targeted & Monetize
Slide 134: Global footprint expansion: Strategy and Roadmap
Global footprint expansion: Strategy and Roadmap
Slide 135: ESL to become one of the most pervasive digital networks
In 5 years, ESL will have become one the most pervasive digital communication network in history Billion digital shelf Smartphones ~7.2 billion displays (ESL) Installed base ESL ~2.3 billion TV ~2 billion 2.3b Laptops ~2 billion 0.7b iPad ~0.4 billion 2012 2022 2027 136
Slide 136: Global Growth Plan Summary
Global Growth Plan Summary €Bn 2.2 5-yr CAGR 30% p.a. 0.2 Rest of World ~25%+ p.a. Focus on selected countries and top accounts 0.9 North America ~50%+ p.a. Top growth priority (Half of total revenue add) 0.6+ ~40m Europe Key markets to accelerate ~0.1 1.1 ~20%+ p.a. Upgrade installed base New verti
Slide 137: Growth Plan Europe
ses imagotag Growth Plan Europe
Slide 138: Europe Revenue Growth
EUROPE Revenue Growth (€Billions) 1.1 5y CAGR 20% p.a. 0.5 0.14 2017 2022 2027 Drivers of growth Installed-Base Value-added DACH & UK New Swap & upgrade Solutions Acceleration Verticals 139
Slide 139: SES-imagotag in Europe
SES-imagotag in Europe 180 people 12 offices & branches France, Netherlands, Spain, Italy, Sweden, England, Ireland, Germany, Croatia, Austria, Denmark 0,5b 30,000 stores 0,3b 0,2b Historical revenue growth 2020 2021 2022 140
Slide 140: Clients
Clients 200+ clients 80% of the TOP10 141
Slide 141: Upgrade & develop our customers
Upgrade & develop our customers # of stores 30 000 + On-prem 25 000 Stores 25,000+ legacy Upsell to on-premise stores value-added to be upgraded & solutions converted to Cloud Cloud 5 000 Stores 142
Slide 142: Monoprix Example Past & Future
Monoprix Example Past & Future S-Tag Roll out G-Tag Roll out Migration to Captana Roll Out Engage 250 stores 400+ stores VUSION 100 stores 2004 2016 2018 2020 2021 Price agility Price agility Price agility Price agility Price agility + In store search In store search In store search In store search
Slide 143: Accelerating in the UK & Ireland
Accelerating in the UK & Ireland 144
Slide 144: ™ al. s Bld citi? bed
™ al. 1 s Bld citi? bed HISTOR KISTOR perfect finish, perfect finish KIES HIER JE KANT-EN-KLARE KLEUR C@eceece @60e000 &
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Slide 151: Europe growth per area
Europe growth per area Europe 5-year CAGR >1.0 B South Europe Central Europe North Europe ~20% p.a.. 200 Growth drivers 20-30% Inflation & labor cost 0.5 B 600 Installed-base upgrade 11% 20-25% DACH & UK acceleration 0.15 B 20% 66% Value-added solutions 35% 12% 31% 200 New verticals 57% 10% 23% 10-1
Slide 152: Growth Plan North America
ses imagotag Growth Plan North America
Slide 153: SES-imagotag America
SES-imagotag America US Canada 50 people, growing to 100+ by YE23 4 offices Mexico Chicago, Dallas (new), Montreal, Mexico City 110M 4,000+ stores Historical 60M 50M revenue growth 15M FY19 FY20 FY21 FY22E 154
Slide 154: Clients
Clients, etc. Canada US Mexico 100+ clients 60% of the TOP10 155
Slide 155: Walmart Past & Future
Walmart Past & Future WM ARG WM MX WM Canada WM US 70 stores 20 stores 400 stores partnership 2012 2018 2020 2021 2022 WM Chile WM CR WM MX 200 stores New market Expansion 156
Slide 156: Unique Selling Proposition
Unique Selling Partner-heavy Proposition ecosystem: CLOUD PARTNER WIFI PARTNERS Technology Services leadership capabilities TECH PARTNERS 100% cloud connected, Local teams delivering dominantly infra-less, ARR excellent end to end service & VAS centric models – ISF, capabilities throughout the MERCH
Slide 157: The Market Opportunity
The Market Opportunity ~30% TAM 3.2B ESLs <2% 2022 2027 158
Slide 158: The Market Segmentation
ESL Market break-down The Market per retail segment Segmentation Other Mass Market 9% 22% Discount 9% Est. # % of of ESLs Total GTM Drug TOP 1-30 ~2.2B 68% Direct 12% TOP 31-100 ~0.5B 16% Direct SMB ~0.5B 16% Channel Grocery & DIY C-Store TOTAL 3.2B 100% 20% 12% SMB 16% 159
Slide 159: Expected Revenue Growth
Expected Revenue Growth 0.9-1.0 €Bn 10x 0.1 €Bn 2022 2027 Drivers of growth Pricing & In Store Supply chain Retail Media promotional velocity fulfillment optimization 160
Slide 160: Financials
sesimagotag Financials
Slide 161: Ambition: largest retail IoT platform
Our ambition: to build the largest retail IoT platform with 1b+ intelligent connected IoT devices 2017 2022e 2027e Key drivers Increasing demand (inflation, labor cost, O2O) SALES in €m 153 600+ 2,200 American market take off / New verticals (retail & Ind.) SES focus on higher value markets / custom
Slide 162: Global Growth Plan Summary
Global Growth Plan Summary €Bn 2.2 5-yr CAGR 30% p.a. 0.2 Rest of World Focus on selected countries ~25%+ p.a. and top accounts North America Top growth priority 0.9 ~50%+ p.a. (Half of total revenue add) 0.6+ ~40m Europe Key markets to accelerate ~0.1 1.1 ~20%+ p.a. Upgrade installed base New verti
Slide 163: 1 Billion Cloud-Connected ESLs in 2027
1 Billion Cloud-Connected ESLs in 2027 Millions of Cloud ESLs 1,150 Millions of Non-Cloud ESLs 10% +800M New ESLs Rapid growth of 90% ESL network 350 and conversion 150 from on-premise 85% to cloud 100% 15% 2017 2022 2027 164
Slide 164: Revenue growth breakdown
Revenue growth breakdown 5-yr CAGR 2.2 >> 30% €Bn (% = of sales) VAS as % of total sales 0.6 >> 47% 30% 16% 1.6 >> 23% 0.6+ 10% 0.1 Vol. 30% / ASP -5% - Innovation - Cost-down 0.15 0.5 - Mix (smaller ESL sizes) 0.14 2017 2022e 2027 2017 2022 2027 165
Slide 165: VAS revenue
VAS revenue VAS Breakdown per product In € per ESL per year Professional Services & Others Engage & 0.6 Analytics IoT Some clients Cloud already > € . VAS Penetration 0.3 On Installed-Base: - Cloud ~90% - Other products ~20% 0.1 2027: 2017 2022 2027 Captana €650m 166
Slide 166: VUSION 2027 Key figures
VUSION 2027 Key figures €m 2017 2022e 2027e Revenue 153 600+ 2,200 VCM 40 125-132 700 % of sales 26% 21-22% 32% Opex (34) ~(72) (220) % of sales 22% 12% 10% EBITDA 6 53-60 480 % of sales 4% 9-10% 22% 167
Slide 167: Financial Structure
Financial Structure Free Cash-Flow Capex 2027 Sales % set around 5-7% of sales mainly consisting of R&D capitalized Ebitda 480 22% expenses + industrial capex to support the ESL growth in volumes Capex (110) - (150) 5-7% Change in WC Change in WC (60) - (100) 3-5% at 10%-15% of the revenue growth Fr
Slide 168: Financial Structure
Financial Structure Financing and Dividends Policies Favor Debt Potential Max Leverage Dividend policy vs Equity. progressive shift (Net Debt to (subject to from bullet to Ebitda ratio): shareholders amortizable and << 2x approval) from Europe to US Targeting dividends starting in 2024 based on 2023
Slide 169: Conclusion
ses imagotag Conclusion
Slide 170: A VUSION for the Future
VUSION ’27 A VUSION 1 Billion Connected IoT Devices for the Future €2.2bn sales (30% CAGR) 40% in North America 30% VAS 22% EBITDA NPS 70 (Customers & Employees) Top ESG Ratings -30%/-40% Carbon Intensity x3 Carbon Return
Slide 171: Thank you!
Thank you! ses imagotag a ete y