Vendex -
PARTNERED FOR SUCCESS
WHAT'S NewS Issue 8 August/September 1997
working relations
3
Vendex International ranks among the more considerable of Rabobank
Internationals corporate partners. Over the past decade, the Vendex group has
transformed itself from a conglomerate - with a far-flung portfolio of interests
around the world - into a streamlined enterprise with clearly defined interests
in retail trading and business services concentrated almost entirely in Europe.
The restructuring process has taken time,
but the results are proving prosperous.
'Vendex has engineered a very successful
rationalization,' notes Rabobank's Steven
Spiekhout, the group account manager. 'It
0|x'nt a number of years in this process,
which involved the termination or disposal
of many unprofitable or incidental activities,
the strengthening of its core business, and
the reduction in high indebtedness levels
associated with its earlier acquisitions. The
results, however, are very evident on the
group's bottom line.' Between the fiscal year
1990/91 and 1996/97, the Vendex group's
total operating income climbed from NLG
164 million to NLG 473 million, while
financial costs declined from NLG 205
million to NLG 60 million. Net sales in
1996/97 were NLG 12.1 billion. Both the
retail and services businesses were
considerably strengthened as a result of this
broad-ranging turnaround - which set the
stage for a successful 1995 stock exchange
introduction.
FASHION CHAINS
This year, as part of a strategy to render
itself even more transparent to the financial
markets, the group has been divided into
two separate companies: Vendex and
Vedior. Vendex ranks as Holland's leading
retailer while Vedior embraces one of
Europe's most substantial services
businesses, with interests in temporary
staffing and cleaning. In the food business,
Vendex owns, among others, the Edah
budget-price supermarket chain in the
From F&A Steven Spiekhout (left), senior
vice-president and Frank van Waesberghe,
accountmanager.
Netherlands, a market in which it hopes to
further increase its market share. Its
department store chain, Vroom
Dreesman, already ranks among the largest
in Holland, and the group also boasts a
string of speciality stores throughout the
Benelux region which offer everything from
fashion, and fashion-related products, and
from jewelry to shoes.
TEMPORARY STAFFING
Vedior, meanwhile, is comprised of a
broad range of temporary employment
and maintenance services geographically
ranging from the Benelux to Spain and
Germany. In a significant strategie
initiative earlier this year, Vedior acquired
BIS of France in a bid to strengthen its
position on the French temporary staffing
scene and heighten its overall profile in the
European market as a whole. Soon
afterwards, the group floated bearer
depository receipts (BDR's) in Vedior on
the Amsterdam and London Stock
Exchanges; Rabo Securities was not only
involved in the first Vendex 1PO, where
(among other things) it financed and
managed a Vendex employee option
scheme, but was also an important partner
in the Vedior equity syndicate as well.
Vendex's Treasurer and Manager of
Investor Relations, Eric Alofs, notes that
the recent successful floatation of Vedior
into two separate companies 'has made it
easier for banks and our partners in the
investment community to come to grips
with the specific businesses in which we
operate. This understanding is a crucial
prerequisite to building long-term
relations in which our banking partners
can help us achieve our ultimate goals.'
FOOD LEADERS
Vendex does not have a single 'house
bank,' Alofs notes. Nevertheless, he says,
Rabobank is one of a small number of
'preferred' Vendex banking partners. It has
traditionally been very strong in the food
business and, since Vendex is a leading
food retailer with turnover of NLG 4.8
'Rabobank is one of a small number
of 'preferred' Vendex banking
partners,' according to Eric Alofs.
billion in this sector alone, there has long
been a natural match. In recent years, this
natural partnership has widened and
intensified. 'We like to do business with a
bank that is focused on own speciality,
plus one that has a wide-ranging branch
network throughout the Netherlands. This
is particularly important because, as
retailers, we handle high volumes of cash
which needs to be secured and also
managed by a top-quality treasury
operation. On the investor relations side,
we frequently discuss our strategy with
Rabobank, especially its IRIS research
arm, and their analysts regularly publish
reports that help widen the market's
understanding of our operations.'
ELECTRONIC PURSES
Moreover, Vendex recently became an
important participant in the Rabobank-
backed Chipknip payment card system. One
of the world's first true 'electronic purses,'
Chipknip was designed to handle tasks
ranging from positive identification of the
customer, registration of transactions, and
clearing of eventual payments. What's more,
it supports 'frequent flyer' and other
customer loyalty schemes operated by
retailers. Because Vendex is so prominent
among high street retailers, its participation
represents an important boost. 'We are very
positively impressed by the professionalism
of the service we receive from Rabobank,
especially in treasury, lending, and investor
relations. Over the past four or five years,
the bank has also become a more aggressive
player in the equity and capital markets -
aggressive in the best sense of the word.
Clearly, they are a favored Vendex partner.'
