jay mutschler president, corporate express us

1CXP Analyst and Investor Meeting Denver – 12-13 September 2007

Jay MutschlerPresident, Corporate Express US

Corporate Express US Analyst Meeting Denver – 12-13 September 2007


“Safe Harbour” Statement under the Private Securities Litigation Reform Act of 1995

Statements included in this press release, which are not historical facts are forward-lookingstatements made pursuant to the safe harbour provisions of the Private Securities LitigationReform Act of 1995 and the Securities Exchange Act of 1934.

Such forward-looking statements are made based upon management’s expectations and beliefs concerning future events impacting Corporate Express and therefore involve a number of uncertainties and risks, including, but not limited to industry conditions, changes in product supply, pricing and customer demand, competition, risks in integrating new businesses, currency fluctuations, and the other risks described from time to time in the Company’s filings with the US Securities and Exchange Commission, including the Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 9, 2007. As a result, the actual results of operations or financial conditions of the Company could differ materially from those expressed or implied in such forward-looking statements. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made.

The Company undertakes no obligation to update publicly or revise any forward-looking statements.


Market Size

LargeStrat $28B

Mid $18B

Small $10B

$0

$10

$20

$30

$40

$50

$60

US OP Market

USOP Market Size (2006)

$56B

Source: Industry reports & McKinsey Analysis (excludes Facility Supplies and Furniture)


Single Accountable Source for Business Needs

One Accountable Source

Leverage with other Lines of Business

Office Products

CEBI Doc & Print Management

CE Promotional Marketing

Facility Supplies

The Customer


Corporate Express US

• Approximately 1,200 delivery vehicles• 14,000 products available via catalog & web• State-of-the-art warehouse & distribution technology:

– Pick-to-Voice voice recognition technology– Warehouse Management Systems

System directed tasks Inventory by location Interface flexibility with 3rd party systems

• 8,700 employees in the US– Over 1,600 direct sales personnel – More than 600 customer service personnel

• ISO 9002 Company platform


Key Accomplishments (2000 – 2007)

• Global Sourcing

• Facility Supplies Business

• Corporate Express Brands

• Strategic Account Capability

•Distribution Technologies

• Successful Integration– Two Mergers


United States Locations


Product Lines

OFFICE PRODUCTS

WorkplaceFurniture

Facility &Cleaning

PromotionalMarketing

Imaging &Computer Graphic

Supplies

Forms & Labels


Office Products

• Headquartered in Broomfield, Colorado

• One of the largest Business-to-business providers of office products and services, including :

– Comprehensive traditional office products– Corporate Express Brands– Contract and Catalog Furniture– Facility Supplies– Next day delivery– Electronic Commerce solutions


Imaging & ComputerGraphic Supplies

• Headquartered in Deerfield Beach, FL• Largest distributor of specialty computer supplies

with national coverage servicing:– Data Centers, Information Processing departments, CAD/CAM

Engineering, Medical Imaging Industry• Specialized catalog with thousands of imaging, storage and

printing products• Highly-trained sales force with

dedicated technical support staff• 24x7 emergency delivery for

data centers• Procurement solutions

– High density and space savingalternatives, disaster recovery/network protection/emergency services


Forms & Labels

• Headquartered in Omaha, NE • One of the largest providers of print products and

services in North America featuring:– Comprehensive document & forms management programs– Pressure-sensitive & product label solutions– InteliMail direct mail production services– Electronic form & print options– Forms reduction analysis &

procurement savings solutions– Flexible order entry, billing and

reporting


Promotional Marketing

• Headquartered in St. Louis, MO• Centralized merchandise catalog programs• Industry-leading e-commerce catalogs• End-to-end process, from creative concept through

fulfillment• Sweepstakes, premiums,

sales incentives, service awards, event management and more


US Operations Q2 2007 Quarterly Product Mix

69%

4%

9%

8%

10%

OP

FacilitySupplies

Forms &Labels

Promo

Furniture


Customer Segments

Education

Government

Health Care

Strategic/Large

Large Local

Mid-Market


Who are our customers?Defining Commercial Sales

Large Local$100 - $500Kannually

Mid-Market$12 - $100K annually

Small$0 - $12K annually


Large National

$500 - $750+annually

HQ

Strategic Account

$1 million+

Global Account

$1 million +

Who are our customers?Defining Strategic Account Sales


IT Systems Architecture

SalesForce.com

CustomerExperience

Center

Our Customers

InVision

WarehouseManagement

System

Mobile Proof of Delivery

JDA Software AWR/E3

Zilliant

Websphere Product Center

PeopleSoft(Finacials & HR)

Data Warehouse(Microstrategy)

Marketing Database


Electronic Commerce

• Our single largest ordering channel

• E-Way sales are approximately 60% of our sales

• Total eBusiness sales nearly 80% of our sales

• Higher average order size with E-Way orders

• More than 40,000 customers and 300,000 registered users

• Online sales average more than $7 million per day

• Supported by more than 600 Advisors located at our Customer Experience Center

• Currently enhancing with best practices of B to C Marketing


Tying Our Product Lines Together

• OneShop Express– Provides customers one consistent, streamlined process from

requisition to payment Consolidated Sales Representation Consolidated Order Entry Consolidated Invoicing Consolidated Reporting Consolidated Customer Care

– Available to all customer segments (Strategic, Large, Mid-Market) through E-Way

– Leverages all product lines (office products, furniture, facility supplies, document and print management, imaging and graphic supplies)


Market Overview

• Competition

Regional/Local Dealers

• Wholesalers


2006 Reorganization

• Services Centralization – Customer Service– Bids and Contracts– Credit and Collection– Purchasing

• Central Product Line and Market Segment Leadership

• Transitioned from local P & L leadership

• Introduced six levels from President to Customer


2006 Reorganization

President& CEO

North American

Lines ofBusines

(ASAP/Promo)Canada SVP CIO SVP Legal COO SVP CFO SVP HR

EVPMerchandising

VP Comm

Lines of Business(ICGS, CEDPM)

VP CC/CI/PMOSVP

OperationsSVP Sales

PresidentFurniture

President FS SVP Marketing

CommercialVP Sales

RVP Sales

MVP Sales


Situation Analysis – Q4 2006 – Q1 2007

• Service stability issues

• Mid-market customer churn

• Large local performance challenges

• Strategic Account win ratio down

• Employee morale issues

• Sales force attrition


Q2 ’07 Approach – Simplify and Sell

Simplify& Sell

Stabilizeservice

environment

Win back hearts of field sales &

operations

Re-generateSales Growth

Engine

ReduceCosts

StreamlineOrganization

3 levels betweenPresident & Customer


Established streamlined

organizational structure

Enhance sales

resources

Enhance service

integrity

Tactical Approach

Initiate simplification

processes

Focus on basic sales strategies

across product lines

Engage field leadership

Focus on improved

communications


Office Products Focus on Execution of Basics

• Mid-Market

• Large Local

• Strategic Accounts

• Furniture

• Facility Supplies

• Service Integrity

• Merchandising/Marketing/Bids & Contracts

• Customer Profitability


Organizational Changes

OrganizationalChanges

Reduce level of senior sales management

Strengthen Regional Role

Heighten distinction and focus on critical Large Local and Mid-Market segments

Add field expertiseand leadership to improve CentralServices


Q3 2007 Organization

PresidentCEUS

SVP Ops

EVPMerch/Mktg/Bids &

Contracts

SVPCFO

SVPCIO

Region Presidents

SVPLegal/HR/

Comm

President Furniture

President FacilitySupplies

Lines Business

(ICGSCEDPM/Promo)

MVPSales

MktSeg

Leaders


Regions Revenue Split

East – 37%

West – 27%

Central – 36%


Focused Leadership Benefits

• Consistency of execution

• Full visibility and accountability for:

– Customer segment performance

– Product line performance


Customer Service

Attributes

Friendly

Fast

Responsive

Streamlined

Accurate

One-call Resolution

Elements

E-Way

CEC

Salesforce.com

Delivery

Central Services


What We See

• Strategic Account/Vertical Market wins and funnel improvement

• Minimal Strategic Account losses in 2007

• Improvement in Large Local wins

• Enhanced morale


Thank you.

Productivity in your hands.

jay mutschler president, corporate express us

Documents