Welcome to Kinnarps!

1. Welcome to Kinnarps!

2. Agenda I would like to talk about Our company Kinnarps Background of Sales Force Excellence Sales Vision 2010 Kinnarps Sales Process Achievements so far - Battles to win

3. Our company A strong interior solutionspartner for the future • Family driven Swedish companyestablished 65 years ago • No 1 in Scandinavia, Europe’s No 3.Represented in 36 countries, some200 showrooms all over Europe,turnover 400 million Euro • Full control over complete chain;from production to installation

4. Business philosophy The Kinnarps star…our capabilities - your benefits • Our business philosophy that permeates everyday work • Our method for continuous development of services and products • Your guarantee for the best solution at best value solutions innovation economy design competence ergonomics quality environment

5. better at work ideas materialized timeless elegance scandinavian sense Brands High quality brands witha variety of expressions + network of approved partners

6. Why change? Why change? Do you have the same problems as we had??

7. Background – the customers • Customers are getting more international • Customers are getting more professional • One stop shopping • Customers demand solutions – not products • From transactions to projects • Double pressure from top to bottom • Space planning/Ergonomics/Environment

8. Budget Exclusive Products Solutions Background – the competition Total market €130 million Market share 15% Kinnarps Denmark CJC Daarbæk Duba/B8 EFG Ergoteam Jesper Office Martela Paustian Scan Office

9. Background – Our own business strategy • Shift from production focus to sales and customer focus. • Develop the offer to complete interior solutions. • Substantial growth potential in Europe. • Maximise impact with uniform international marketing. • Take full advantage of the competence in our international network. • Take control of our most valuable asset: the Kinnarps brand.

10. Background - Business strategy International growth plan

11. Background – Business Strategy The keys to success MORE INTERNATIONAL concept coordination cooperation establishing work

12. Background – Why change? Present way of working • All markets work in their own way with sales – no synergies • Sales people too quick to present and quote • A NO to business is very rare • No common CRM-system • Not enough preparations before meeting the customer • No cooperation between Sales and Marketing • Increase quality in sales – better control • Increase profitability TOGETHER!!!!

13. Challenges – Why change? Why change? • Win more Opportunities – increase hitrate • Decrease sales cycle – increase productivity • Increase quality in sales – better control • Increase profitability TOGETHER!!!!

14. Our new way of working NO PAIN - NO CHANGE

15. SALES = Number of cases x Value x Winrate

17. Resources invested Essentially, opportunities that we do NOT win are characterised as waste The earlier you abandon an opportunity that you can not win, the less waste you generate Qualification “Lean” is about eliminating waste Need analysis Solution Validation Final agreement Implementation

18. Qualification Need analysis Solution Validation Final agreement Implementation Lean is about eliminating waste Qualification Need analysis Solution Validation Final agreement Implementation 100 125

19. 100% 100% 100% 100% 100% 100% 0% 0% 0% 0% 0% 0% The no 1 reason for waste in sales Reason: Misalignment with customers buying process

20. W = P x P x V x V x C

21. EVALUATE ALTERNATIVES EVALUATE RISK DETERMINE NEEDS Buying Process versus Sales Process

22. EVALUATE ALTERNATIVES EVALUATE RISK DETERMINE NEEDS Buying Process versus Sales Process Needs Needs

23. EVALUATE ALTERNATIVES EVALUATE RISK DETERMINE NEEDS Buying Process versus Sales Process Needs Cost Price Needs

24. EVALUATE ALTERNATIVES EVALUATE RISK DETERMINE NEEDS Buying Process versus Sales Process Solution Solution

25. EVALUATE ALTERNATIVES EVALUATE RISK DETERMINE NEEDS Buying Process versus Sales Process Risk

26. EVALUATE ALTERNATIVES EVALUATE RISK DETERMINE NEEDS Buying Process versus Sales Process Risk Cost Price

27. EVALUATE ALTERNATIVES EVALUATE RISK DETERMINE NEEDS Buying Process versus Sales Process Risk Needs Cost Price Needs Solution Risk Solution Need analysis Solution / Validation Final agreement

28. Estab-lishing vision ofsolution Inspiration/market awareness Pain definition& analysis Pain is activated Evalua- tion/review Contact supplier Evalua- tion and order Fulfil- ment Leadidentifica- tion Leadqualifica- tion Pain analysis Vision creation Propose solution Contract close Delivery of total solution After Sales Kinnarps Sales Process Buyer’s process 8 5 6 7 1 2 3 4

29. Sales Force Excellence – project idea 1. Creation of Sales VisionSales Vision Workshop, interviews at local businesses, Sales goals defined. International Sales Forum initiated 2. Diagnostics of AS-ISIdentification of existing sales process, activities, sales tools, pipeline management and customer relationships. KINNARPS SALES VISION SALES FORCEEXCELLENCE 5. ReinforcementLocal Implementation Café Buddy co-visits, Local definition of ”Must win Battles”, opportunity coaching. Module 2 Sales Training. Regular HQ audit. 3. Design of Sales ProcessGeneral Kinnarps Sales Process with customized local versions. Sales Tools built. SALSA re-engineering. KAM-organisation structured. 4. Implementation of Sales ExcellenceSales Management and Role Model Sales Training. Local Business Roll-out.

30. Sales Vision 2010 “Excellence in selling workspace interior solutions by truly understanding the needs of our customers and create value for them” • Aggressive goals for growth in sales per sales representative • Improvement in productivity per sales representative • Selling workspace interior solutions – maximise number of product categories and services for defined customers • Fair share of sales with key accounts (share customer budget) SALESVISION SALESMISSION SALES GOALS 1 2 3 4

31. Sales Force Excellence Achievements so far • Sales Management committed to SFE on all markets • Common Kinnarps Sales Process • Common CRM-system used by all • Common sales language • Sales and Marketing working together • HR, Product development, IT integrated in the SFE work • Pipeline management – improved prognosis

32. Sales Force Excellence • Battles to win • Follow-up of all markets is a MUST. Encouragement needed • Coaching level of sales management need to be identified • Use of CRM system must be encouraged • Continuos efforts to create new strong sales tools – update of existing tools • Market plan made by Sales and Marketing together • Improved customer segmentation on all markets • A clear Value proposition identified and accepted by all within the internal organisation – communicated to the customers in a unified way

33. Sales Force Excellence KINNARPS WINNING FORMULA Kinnarps’ salesforce shall be able to analyse and really understand the deep needs of the customers relate the needs of the customers to Kinnarps’ solutions and create solutions with a clear customer value In this way Hitrate will be increased Productivity will be increased Control will be improved Profitability will be increased TOGETHER!!!!

34. Benefits improved ergonomicsfor healthier employees Making life better at work increased efficiencyall day better workspaceflexibility more adaptable furniture new ways of working minimised facility costs improved space planning

35. Many thanks for listening!

36. Business philosophy Cost-efficient, flexibleinterior solutions • One supplier for the whole project facilitates the entire process efficiently • Superior control over budgetand timetable • Own unique production and logistics give best value for money solutions economy