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Babysam.Dk Tel.: +45 70 11 30 10 AUDITORS Ernst & Young Godkendt Revisionspartnerselskab Osvald Helmuths Vej 4 P.O

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Babysam.Dk Tel.: +45 70 11 30 10 AUDITORS Ernst & Young Godkendt Revisionspartnerselskab Osvald Helmuths Vej 4 P.O Group Annual report 2016 17 CVR no. 35 20 43 69 ◆ Nyholms allé 3, 2610 Rødovre ◆ Basa Holding A/S CONTENTS Company information BASA HOLDING A/S BOARD OF DIRECTORS Name BaSa Holding A/S Sanna Mari Suvanto-Harsaae, Chairman Address, Nyholms Allé 3, 1, Karl Tommy Wikström postal code, city 2610 Rødovre, Denmark Peter Jalsøe Niels-Christian Worning CVR no. 35 20 43 69 Johan Gustaf Olof Bjurström Founded 22 March 2013 Jan Johan Kühl Municipality of registered office Rødovre EXECUTIVE BOARD Financial year 1 October - 30 September Kenneth Willenbrack Nørgaard Mikael Koch Jensen Website www.babysam.dk Tel.: +45 70 11 30 10 AUDITORS Ernst & Young Godkendt Revisionspartnerselskab Osvald Helmuths Vej 4 P.O. Box 250 2000 Frederiksberg Denmark 2 Management's review Annual Report 2016/17 ◆ BabySam Contents CONTENTS Contents A quick overview Letter from Management 4 BabySam at a glance 5 Financial highlights 8 Management’s review Business review 10 Financial review 14 Company information 17 CSR 18 Consolidated and parent company financial statements for 2016/17 Statements 20 Income statement 23 Balance sheet 24 Statement of changes in equity 26 Statement of cash flows 27 Notes 28 BabySam ◆ Annual Report 2016/17 Management’s review 3 Letter from management CONTENTS Letter from Management BabySam continues positive growth trajectory and rolls out final phase of its omnichannel strategy. abySam’s growth trend and favourable overall We will continue our digital transformation while remaining development continued unabated in financial year focused on our customers: We will customise our dialogue and 2016/17. Generating solid growth in both revenue contact to the individual requirements of each customer and and profit, we met our financial targets in the offer even greater flexibility and even more options through Bpast financial year. our omnichannel strategy. Our employees are our most important asset. Day in and day The final phase of our omnichannel strategy involves sub- out, they work extremely hard to make sure our stores – our stantial investments in innovative technology and IT. We have physical stores as well as our webshop – always stand ready already introduced a new marketing platform and plan to to offer the latest product news and the market’s premier replace our in-store and ERP systems with new systems that product range, while at the same time providing excellent ser- will better support the strategy. By the end of financial year vice to the high professional standards for which BabySam is 2017/18, BabySam will be 100% omnichannel-driven with a renowned. Thanks to their efforts, our customers feel helped, single view of customer. This will give all of our customers the safe and satisfied – and a little more comfortable having be- same experience, whether they shop in our stores or online. come a parent or a grandparent or being the friend of either. Based on demographic developments, we expect the birth BabySam further expanded its market share in the past year rate to continue its upward trend in the years ahead. We are – at a time of modest growth in the number of births and lim- confident that our strategy, substantial investments in digital ited overall market growth. In that light, we are very pleased services, new products and the customer focus of our talented to note that we grew revenue significantly from our stores, and dedicated employees will combine to strengthen our posi- from institutional sales and, not least, from our webshop. tion even further over the coming years. Overall revenue was up by 9%. We are anticipating growth in both revenue and operating The growth reported by our stores was partially attributable profit in financial year 2017/18. to our increased focus on upgrading the retail network by means of renovation, relocation and the establishment of entirely new stores. The main contributor, however, was our relentless focus on providing the market’s premier customer Kenneth Nørgaard service and advice. All things considered, BabySam enjoys a CEO historically strong market position. Thanks to the roll-out of the final phase of our omnichannel strategy, we expect to further strengthen our competitive position in the coming financial year. 4 Management's review Annual Report 2016/17 ◆ BabySam Babysam at a glance CONTENTS BabySam at a glance HISTORY SALES Before BabySam became a capital chain, it consisted of a number of independent stores that were typically family-owned and driven by B2B their owners’ passion for baby equipment. In ◆ BabySam carries on B2B sales and is among 2008, the stores were brought together under the five leading suppliers to public institutions the common name of BabySam and, through and the day care sector. acquisitions, under joint ownership by Polaris and AAC. This ownership structure remains intact today. NUMBER OF STORES BabySam now consists of 30 stores across Denmark. From our headquarters in Rødovre 30 near Copenhagen, the stores are run as one ◆ BabySam consists of 30 stores combined chain. BabySam also has its own across Denmark. webshop, BabySam.dk, which, in addition to an easy and convenient shopping platform, provides customers with information about BabySam, good stories and tips and a location NUMBER OF OWN BRANDS service guiding customers to the nearest BabySam store. 6 BabySam also owns Odder Barnevognsfabrik. ◆ BabySam carries a market-leading product range This company has manufactured quality prams of leading international and Danish brands and a for Danish children for more than 90 years, and strong portfolio of own brands, including Odder, Holly’s, MyBaby, BeKids and Scandia. its products are among the most popular in Denmark. BabySam is the exclusive distributor of the Odder pram brand. BabySam ◆ Annual Report 2016/17 Management’s review 5 CONTENTS BabySam at a glance NUMBER OF EMPLOYEES Candidates are first and foremost selected based on their qualifications, and the Board of Directors is committed to providing women and men seeking 270 employees election with equal opportunities. The company orig- ◆ At 30 September 2017, we had 270 employees, inally pursued a 50/50 gender composition in 2018. an increase of 11 compared with the same time However, for the sake of ensuring Board continuity, last year. this target has been suspended for the short term. While this means that the target will not be met in 2018, we will continue to work towards gender equal- BABYSAM’S EMPLOYEES ity and expect to meet our target in 2020. One of the keys to our success is the honest and pro- Being a holding company, BaSa Holding A/S has fessional advice we provide, and we are honoured by no layers of management other than the Executive the trust shown by our customers. We owe this trust Board and the Board of Directors. The day-to-day entirely to our dedicated employees, their interest management consists of the Executive Board, key in our customers and their high professional stand- function managers and store managers. According to ards. Accordingly, training, development and regular company policy, all executive positions are to be filled customer satisfaction surveys are essential parts of by the best-qualified candidate. At the same time, our DNA. efforts are being made to improve gender equality at executive level and, as far as possible, at least one of At BabySam we make a point of rewarding our em- each gender will be among the three last candidates ployees for their talent and dedication. Most of our for executive positions. store managers have been recruited through in-house training and promotion programmes. This ensures In the past financial year, the ratio of women in continuity, stability and a consistently high level of executive positions remained unchanged at 53%. The professional expertise and advice. We encourage our gender composition of the Executive Board was also employees to grow their skills throughout their career unchanged with both members being men. with us, and we prefer to recruit from within our own ranks when filling executive positions. In 2016/17, we filled almost half of our executive vacancies with in-house candidates. We are proud of this succession and expect to be able to continue it. BabySam’s Management and core functions are based in the Copenhagen suburb of Rødovre. GENDER COMPOSITION AT EXECUTIVE LEVEL REPORT ON GENDER COMPOSITION OF MANAGEMENT The Board of Directors is chaired by a woman, while the other five members are men. Candidates for the Board of Directors are assessed based on the same 47% criteria – regardless of their gender. Men 53% Women 6 Management's review Annual Report 2016/17 ◆ BabySam CONTENTS BabySam at a glance CORE GROUP ACTIVITIES OWNERSHIP STRUCTURE The parent company’s primary activity is to act BaSa Holding A/S is owned by Samba Feeder A/S as the parent company of the BabySam Group, (70%) and Vendor Co. Af April 2013 ApS (26%). The which operates a chain of stores selling and renting remaining shares are owned by executives and mem- out baby equipment and selling mother and child bers of the Board of Directors. products. In addition, BabySam operates a webshop, www.babysam.dk, which allows customers to shop Samba Feeder A/S is owned by Polaris Private Equity baby equipment at all hours. and AAC Capital Partners. BabySam imports a considerable share of its range Polaris is a member of the Danish Venture Capital of baby products and owns Odder Barnevognsfabrik, and Private Equity Association (DVCA) and, as such, which produces prams for the Danish market. endorses the DVCA’s guidelines. For more informa- tion, see www.DVCA.dk. Part of BabySam’s revenue stems from sales to mu- nicipal and private day care institutions in Denmark. The company is also a co-owner of Nordic Baby Group AB.
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