Relocation Service Model
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Investor Meeting on MRS 1 June 2011 Today’s programme Niels Henrik Jensen – President & CEO, EAC Group Introduction Niels Henrik Jensen, President & CEO, EAC Group Brief industry overview Lars Lykke Iversen, CEO, Santa Fe Group Industry perspectives – market trends and potential Peggy Smith, CEO, Worldwide ERC Santa Fe Group – a business overview Lars Lykke Iversen, CEO, Santa Fe Group Santa Fe Moving & Relocation – Asia & Middle East Patrick White, Senior Group Director, Santa Fe Group WridgWays - Australia Des Stickland, CEO, WridgWays Interdean – Europe and Central Asia Dale Collins, CEO, Interdean Closing remarks & lunch Niels Henrik Jensen, President & CEO, EAC Group 2 Introduction Niels Henrik Jensen, President & CEO, EAC Group 3 EAC Group Overview Niels Henrik Jensen – President & CEO, EAC Group EAC Group strategic priorities Create maximum shareholder value Transform two remaining profitable businesses into independent companies Expand market leadership in each business 4 EAC Group Overview Niels Henrik Jensen – President & CEO, EAC Group Strategic execution – past 10 months Acquisition of WridgWays, Australia Integration in progress, sales synergies already apparent Agreement to acquire Inderdean Completion expected by end of July 2011 Continued organic expansion of activities New offices in existing markets Geographical expansion of records management Expansion of service offerings and customer/partner relationships Dedicated pursuit of strategic roadmap 5 EAC Group Overview Niels Henrik Jensen – President & CEO, EAC Group Outlook and financial targets Revised outlook at H1 upon completion of Interdean Santa Fe Group key figures and ratios to be affected by Interdean integration Aim to improve visibility through future segment reporting Commitment to ongoing communications of strategic goals and achievements 6 Brief industry overview Lars Lykke Iversen, CEO, Santa Fe Group 7 Santa Fe Group Introduction Lars Lykke Iversen - CEO, Santa Fe Group Industry Overview Independent family-owned moving & storage companies provide 1960-1980 services through agent networks. Relocation is primarily domestic. Corporations manage & coordinate moving/relocation internally. Real estate companies expand services to cater to the full relocation Late 1980’s value chain. – 1990’s Corporations begin to reduce/eliminate internal coordination centers (outsource). Consolidation of brands/networks within the moving industry. Late 1990’s Relocation companies expand internationally to meet client needs/requirements. Corporations continue to outsource responsibility and seek single 2000 to date supplier solutions. 8 Peggy Smith, SCRP, SGMS Worldwide ERC® Chief Executive Officer Global Leadership Development Worldwide ERC® Benchmarking 50% 40% 34.0% 34.0% 30% 29.0% Significantly Somewhat Remaining the increasing same 20% increasing Percentage of respondents of Percentage 10% 3.0% Somewhat 0% decreasing Global Talent Management and Global Mobility Share the Same Cycle Sourcing Promoting Attracting Organizational Retaining Selecting Culture Engaging Onboarding Developing Source: “Getting Strategic with Your Talent: Assessment Tools for Selection & Development” Worldwide ERC® Global Workforce Symposium Talent Management Maturity Model Companies Are Hosting Assignments in More Locations Source: “Talent Mobility 2020: The Next Generation of International Assignments,” PWC; sample 900 companies Increasing Mobile Population “Mobility strategies will become more sophisticated and complex as organizations meet growing deployment demands.” Source: “Talent Mobility 2020: The Next Generation of International Assignments,” PWC; sample 900 companies Changing number of international assignees by assignment type Over prior two years, all regions 100% 81.3% 80% 63.2% 63.6% 61.5% 60% 56.7% 56.3% 50.0% 40% 36.8% 36.4% 30.0% 31.3% 30.8% 25.0% 25.0% 20% 13.3% 12.5% 12.5% 7.7% 6.3% 0% Locally Hired STA LTA Commuters Rotational Contract Globalists/Career Expatriates Assignments Employees Expatriates Increased Stable Decreased Source: Mercer International Assignments Survey Currently Outsourced Areas of Mobility Programs 100% 80% 60% 40% 20% 0% All Regions Asia & Pacific Europe Latin America North America Tax preparation/compliance Moving arrangements Househunting/destination svcs. Immigration/visas Spouse support Source: Mercer International Assignments Survey Locations with the highest use of expatriates Inbound Expatriates 70% 63.7% 60% 50% 41.3% 40% 30% 20% 15.1% 15.1% 12.7% Percentage of respondents of Percentage 10.5% 10.1% 10% 7.7% 6.7% 6.4% 0% Australia Brazil Canada China India Japan Russia Saudi Arabia UAE US Outbound Expatriates 70% 60% 55.2% 50% 40% 29.4% 30% 17.0% 20% 13.4% 14.1% Percentage of respondents of Percentage 10.8% 10% 7.2% 3.9% 4.2% 3.5% 0% Australia Brazil Canada China India Japan Korea South Africa UAE US Source: Mercer Worldwide Survey of International Assignment Policies & Practices Talent Mobility Segmentation Primary focus: Corporate-led career pathways and succession management High 3 1 High Emerging High Strategic Business Potential Talents Leaders Providing international learning Filling mission-critical roles with and development experiences to high performing and seasoned grow the next generation of executives leaders 4 2 Career-building Seasoned Technical Volunteers Experts (e.g., Gen Y, Millennials) Providing technical and Facilitating employee-initiated specialized resources/expertise to fill local skill gaps or complete Development Value Value Development request for international experience to fulfill personal life a project or task objectives Primary driver: Business-led career resource planning and deployment Low Low Low Business Value High Customization is King. Compliance Global HR Client Needs Include… Tax Employment law Immigration Transparency Key Takeaways Increase in mobility activity Increase in complexity Increase in compliance demands Shift in sourcing methodology Q&A 22 Santa Fe Group – a business overview Lars Lykke Iversen, CEO, Santa Fe Group 23 Santa Fe Group Introduction Lars Lykke Iversen - CEO, Santa Fe Group Santa Fe History 1980 – Established in Hong Kong 1985 – Expanded to China, Singapore 1988 – EAC acquires Santa Fe 1994 – Opened Thailand office 2000 – Global Silverhawk acquisition 2006 – Opened in South Korea 2007 – HR2B Vietnam acquisition, opened office in Taiwan 2008 – India acquisitions (Ikan, IR Moving) 2010 – WridgWays, Australia 2011 – Interdean, Western & Eastern Europe, Russia, Central Asia 24 Santa Fe Group Introduction Lars Lykke Iversen - CEO, Santa Fe Group Group Comparison Established 1959 1892 1980 Offices 48 30 42 Team members 1,200 450 1,500 Revenue* USD 191m USD 109m USD 113m EBITDA* USD 9m USD 9m USD 12m Memberships FIDI, OMNI, FIDI, OMNI, EuRA, FIDI, OMNI, EuRA, EuRA, Worldwide Worldwide ERC Worldwide ERC Accreditations ERC ISO 9001, 14001, ISO 9001, 14001, ISO 9001, 27001, FAIM, AS- 27001, FAIM 14001, 27001, NZ 4801 OHSAS 18001, Other UN Global FAIM Compact * Interdean financials are for 2010, Wridgways are for 2009/10, and Santa Fe are for 2010. 25 Santa Fe Group Introduction Lars Lykke Iversen - CEO, Santa Fe Group Introducing the new Countries 50 force in Offices 120 relocation. Revenue USD ~413m 3 Continents EBITDA ~7.4% 1 solution. Team members 3,150+ Annual ~ 100,000 relocations 26 Santa Fe Group Introduction Lars Lykke Iversen - CEO, Santa Fe Group Business Model Customer centric innovation philosophy Direct control of service delivery Direct control of customer relationships to achieve higher margins and control our own destiny Quality, efficiency, people and safety State of the art technology Highly aggressive business development We make it easy 27 Santa Fe Group Introduction Lars Lykke Iversen - CEO, Santa Fe Group Organization & Management Team Santa Fe Group Chairman Santa Fe Group CEO Santa Fe Group CFO Management Middle East Asia Australia Europe Group Functions Country Country State Country Management Management Management Management Group General Group General Group Director Group Director Group Director Group Director Manager Group General Manager Partner Relocation Talent Records Sales & Marketing Information Manager Property & Supplier Services Management Management Technology Management Group General Group General Manager Visa & Manager Real Immigration Estate Services 28 Santa Fe Group Introduction Lars Lykke Iversen - CEO, Santa Fe Group Our strengths Geographic Coverage – 3 Continents • Single source solution – One Company, One Committment • Corporate Governance • Geographic expansion within the Middle East, Pakistan, Customer Service Bangladesh, Sri Lanka • Provide worldclass customer People service • Attract, develop and retain the best • Identify new product opportunities people in the industry through Customer Centric • Integrity, honesty Innovation • Flexibility & transparency Quality & Standards Products / Services • Commitment to quality • Moving Services • ISO 9001 (quality) • Relocation Services Competencies • ISO 14001 (environment) • Records Management Services • ISO 27001 (data security) • AS/NZS 4801:2001 (health & safety) • FAIMISO • OHSAS 18001:2007 • Corporate Social Responsibility – Brand UN Global Compact • Santa Fe name & red horse logo • Quality, Efficiency, People, and Partnerships Safety Technology • Global network managment • Relationship management • State of the art • Worldwide ERC, OMNI, FIDI, • Common platform EURA 29 Santa Fe Group Introduction Lars Lykke Iversen - CEO, Santa Fe