Annual Report 2004 - HL Display

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STRUCTURES AND WORKING METHODS Efficient organisation creates increased profitability In 2003 and 2004 HL Display increased the efficiency of the organisation. The aim has been by means of better utilisation of the company’s resources to reduce costs and thus increase both competitive strength and profitability. HL Display is currently focusing on vertical profitability. This means that the sales area is responsible for profitability throughout the whole chain from production until the product is sold and delivered. HL Display’s subsidiaries all over the world are sales companies integrated into the parent company, and are pure profit centres measured against targets for total margins. The production companies, located mainly in Sweden, are pure cost centres measured in terms of their efficiency. The workflow in HL Display The HL model is an easy-to-understand way of describing the workflow in the company, from raw material through to delivery to customer. HL Display’s products can be divided into three areas of expertise – in-store communication, merchandising and shop systems. In-store communication involves giving consumers clear information about prices and products, and telling them where goods are in the store. Merchandising involves presenting products in the best possible way out in the store. It must be both attractive to the consumer and easy for shop staff to maintain. Shop systems are complete shop fittings with a focus on flexibility, functionality and quick installation. This area of expertise is only available on the Swedish market. HL Display’s customers are the retail sector (food retail and non-food retail) and brand manufacturers who supply goods to the retail sector. In order to meet their needs in terms of solutions for whole categories of goods, products are combined within instore communication and merchandising to create total category The HL Model shows the work process in HL Display. HL DISPLAY ANNUAL REPORT 2004 6 solutions, such as Health & Beauty and Confectionery. As well as category solutions, HL Display also supplies individual products to its customers. Focus on key accounts HL Display is increasingly following up on its operations on the basis of key accounts rather than by geographical market. This is quite natural, as most companies in the retail sector and among brand suppliers have global or regional operations. This is also reflected in HL Display’s strategy of geographic expansion. The company follows its customers as they expand into new markets, and consequently does not set up any new operations in markets where its existing customers do not have a presence. Good relations with key accounts are a crucial success factor for HL Display. To safeguard HL Display’s position in its collaboration with these key accounts, there is a high degree of central co-ordination and control. The company’s Key Account Managers have total responsibility for the business relationship with the customer, which means that high demands are placed on someone in this position. HL Display provides its Key Account Managers with support from other functions within the company, through ongoing training and continuous further development of system support. One important element of this work is the five Area Managers working within HL Display. Their role is mainly a supporting role towards the company’s sales staff, and they do not thus constitute units by which the group is managed. They act as sounding boards for managers of subsidiaries all over the world, conduct detailed
DEVELOPMENT OF OPERATING EXPENSES, SEK T 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Turnover Operating expenses 2000 2001 2002 2003 2004 HL Display has lowered operating expenses through an active work on cost control. follow-up on sales work and ensure that there is greater co-ordination and greater support for sales staff. Four important areas Four areas and processes are of central importance for HL Display’s competitive strength and continued success: sales, product development, production and logistics. Product development is described in more detail on page 12 and production on page 22. The importance of key accounts, combined with the fact that the move towards category solutions is creating longer, more complex and cost-intensive sales projects, places demands on sales work to be of a very high quality. The right efforts must be made in the right project for sales work to be successful and create the conditions for an increased number of sales. HL Display works according to a standardised process throughout the whole group. The sales process, put simply, is based on three platforms – mar- 7 STRUKTURER & ARBETSSÄTT To reduce delivery times HL Display is working increasingly with direct deliveries from the factories to end customers. ket platform, working platform and buying platform. The market platform is about establishing a common internal view of the market, definitions and prioritisation. As market leader, it is extremely important for HL Display to have the five biggest retail chains and brand suppliers as customers in all markets in which the company is active. The market platform forms the basis of a structured approach to sales work. The focus is then on converting the potential customers identified into regular purchasers of solutions and products from HL Display, on transferring them to the buying platform. This is achieved via the working platform, which involves a structured way of working through the whole process, from creating relationships to signing orders. Increased service through efficient logistics Logistics is a high-priority area for HL Display. Efficient logistics creates cost reductions for the company while at the same time service to customers is improved through shorter delivery times. The new common group sales process consists of three stages. By means of a structured approach, potential customers will be led from the market platform to the buying platform – to become regular purchasers of HL Display’s solutions and products. HL DISPLAY ANNUAL REPORT 2004
Page 1 and 2: HL Display Annual Report 2004
Page 3 and 4: The year in brief . Group net sales
Page 5 and 6: ments. These customers have now ins
Page 7: panies are measured on the basis of
Page 11 and 12: HL Display’s new Slimline shelf-e
Page 13 and 14: emphasis on further developing its
Page 15 and 16: The new EasyShelf system makes it e
Page 17 and 18: the region attractive to the multin
Page 19 and 20: Developments during the year Sales
Page 21 and 22: Competitors The competitive situati
Page 23 and 24: 21 Super GB uses colour codes to he
Page 25 and 26: the company’s products. This mean
Page 27 and 28: EMPLOYEE FACTS Employee categories
Page 29 and 30: Customer agreements are normally re
Page 31 and 32: 29 THE HL DISPLAY SHARE Options sch
Page 33 and 34: Income statement Comments on the co
Page 35 and 36: 33 Group Parent Company BALANCE SHE
Page 37 and 38: Cash flow statement 35 CASH FLOW ST
Page 39 and 40: Financial instruments An explanatio
Page 41 and 42: Note 3 BREAKDOWN OF NET SALES BY GE
Page 43 and 44: Note 15 TAX ON PROFIT FOR THE YEAR
Page 45 and 46: Note 21 SHARES IN GROUP UNDERTAKING
Page 47 and 48: Note 28 LONG-TERM LIABILITIES Of lo
Page 49 and 50: Note 35 TRANSACTIONS WITH RELATED P
Page 51 and 52: Nine year summary 49 NINE-YEAR SUMM
Page 53 and 54: Board procedures 2004 HL Display’
Page 55 and 56: 50 years of HL Display It was 50 ye

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