The company in brief

Quick version

• Business ideaByggmax is selling building materials of good quality, at lowest possible price

• The concept:– Price leadership– Fast and easy to shop– Efficent delivery model– Entrepreneurial and cost conscious culture– Focused assortment

BYGGmax concept

Entrepreneurial, cost conscious culture

Price leader with indiscriminate prices

BUDGET

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Men Women

Which DIY retailers do you think fit: Low price?

Source: Vi i Villa, 2008

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Indo

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tore

Fast and convenient shopping

Efficient operating model

Introduction

Distinct product offering

Roof tilesInsulation

Impregnated timber

Window

Door

Sawn wood

Drainage

Ceiling paper

Paint

Inner door

Drain pipe Flooring

Price leadership

Who is the cheapest in the market?, Vi i Villa 2012

Winner in price and quality comparisons

Fast and easy to shop

Drive-in

Easy to access and load your

car/truck

Cars allowed in the yard and the

cold storage

Measuring zone with handheld

computer

Can borrow ”släp”

Focused assortment,

Turnover per SKU

Number of SKUs in the market

Standard assortment– 2500 SKUs

Ordering assortment – 5000 SKUsWe will continue to broaden the assortent on-line,

where the tail sells!

December, 2013

8

A new web platform was launched during the quarter.

The new platform, which has a substantially raised performance to the previous platform, allows an expanded range on the website and simplifies navigation.

Byggmax

Modern web platform

Efficient delivery model

Full truck directly to store

Supplier

Central administration

Store

Goods reception

Centrally controlled store model, as pure

as it gets

June, 2013

10

Byggmax

Byggmax finalist in Swedish Lean Awards 2013

Being a company that works according to the Lean model involves working actively with resource efficiency and minimizing waste.

“We are proud to be in the final of the Swedish Lean Awards 2013. The concept behind lean forms part of our set of values, the Byggmax Spirit. It is a source of pride among our employees, who apply this approach daily, and proof that we are proceeding in the right direction, although we are aware that it is a never-ending journey,” says Magnus Agervald, CEO of Byggmax.

Byggmax’s focus on lean is an extension of the work that the company initiated at its inception 20 years ago and one of the reasons the company has been able to enjoy such strong growth in recent years and now has more than 100 stores.

December, 2013

11

We gathered all permanent employees at a major conference on November 16-17 in 2013, to draw up a new set of values.

The conference was a great success and generated a lot of energy and enthusiasm.

Byggmax

Byggmax is a value driven company

Entreprenurial cost conscious culture

•The ”Byggmax spirit” is an important part of our culture

•Key words are–Responsibility–Customer first–Having fun and acting fast–Development–Low costs–One for all, all for one

Goals for the future

• Store expansionThe stores will always be the most important place, where we meet the customers

• Largest DIY store on internetOur brandname, well visited website and store network will allow us to achieve this

Now Goal

Sweden 72 95

Norway 27 60

Finland 13 25

Total 112 180

Byggmax sales development

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86

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120StoresTurnover

MSEK

What others are doing

Hornbach kompakt

• New Hornbach concept, with less space

• 33% of the space is a showroom, 67% is a warehouse

• Use barecode scanning for price and product information

• Internetstations give access to the entire Hornbach assortment, everything is not on display

• Warehouse articles can be collected directly at the store

• Ordering articles can be collected at store, or will be sent directly home

July, 2010

16

Assortment in an e-world

• Over time, more and more of the sales will move on-line also in DIY

• Assortment in itself is positive for conversion/sales on internet

• Assortment can be confusing for the customers, if the webpage is not structured enough

• For a small store, the physical assortment can be complemented with the on-line assortment, creating a powerful combination

• Some product categories are costly to transport, here all retailers with stores can use existing flows for cost efficient solutions in ordering assortments