N E W S L E T T E R O F T H E J E B S E N G R O U P 2 0 1 8 N O . 3 V O L U M E 1 0

The Time for TalentHuman capital is Jebsen Group’s most prized asset

Man on the Move Jebsen Logistics’ Mr Lam Lung Kam reveals the source of his endless energy

Maintaining Pole PositionRevealing Jebsen Motors’ six-step formula to business success

The 2018 Employee Insights Survey Results at a GlanceLet’s work together to make Jebsen a great workplace

In China, there is a saying: it takes a decade to grow trees but a century to cultivate talent (十年树木， 百年树人). At Jebsen, our talent management philosophy is similar. We make long-term investments in our people, and are fortunate to have many long-serving employees. One of them is Jebsen Logistics’ Mr Lam Lung Kam who is now in his 37th year with the Group. Read his story in ‘Our People’ on

page 8.

But times are changing. In 2017, less than 40% of China’s post 90s workers stayed in their first job for more than a year. This signals that we need to understand the changing mindsets of our people, so that we can focus our employee engagement, talent development, and staff well-being efforts to meet their needs.

Our Employee Insight Survey (EIS) is a good barometer to understand sentiments on the ground. Our recently-concluded 2018 EIS showed an increase in both employee participation rate and employee engagement score, which bodes well for the Group. I would like to thank everyone for being forthcoming with their feedback about where we excel and where we need to improve.

It is clear that we share a symbiotic relationship with our people—their achievement is our success. When we work hard to help our employees reach their potential, they in return work hard to deliver results for our business. Success Breeds Success.

2 | T H E B I G P I C T U R E

TalentTHE TIME FOR

Helmuth HennigGroup Managing Director

T H E B I G P I C T U R E | 3

Jebsen BeverageBlue Girl Beer has been sporting a new look since July. Hong Kong’s best loved lager is now available in a sleek and slender 330ml bottle.

Jebsen MotorsJebsen Motors defended its top Porsche China dealership ranking for the third consecutive year, and created a new record with all its Porsche Centres ranking among the country’s top ten. Its Porsche Centre Shenzhen Longgang and Futian also won the ‘Dealer of the Year’ accolade for the second time. The business line served over 80,000 customers and delivered close to 9,000 Porsche vehicles in 2017.

Singer Joey Yung headlined the latest edition of the ‘Modern Love with Blue Girl Beer’ concert. She was joined by popular group C Allstar as well as singers Feng Bo and Louis Lo in a musical extravaganza that delighted fans in Shantou on August 18.

Jebsen ConsumerJ SELECT has partnered with Japan’s Artistic & Co to introduce the Dr. Arrivo range of advanced home beauty gadgets to Chinese consumers. Developed in consultation with over 100 aesthetic doctors, the brand offers a technologically driven and scientifically proven way to achieve the ‘art of beauty’ at home. Dr. Arrivo was officially launched on August 16, 2018 at the J SELECT Beijing Wang Fu Central store. It is also available online at www.jselect.com and http://jebsen.tmall.com.

Adding another feather to its cap, Jebsen Motors has become the first Porsche dealer group in the world to hold a series of art events in collaboration with Porsche acrylic artist Ms Tanja Stadnic. Eight customer painting events were held across Mainland China and Hong Kong from August 31 to September 8. Group Chairman Mr Hans Michael Jebsen and his wife joined in the fun by painting their own Porsche 356.

THE TIME FOR

Jebsen Industrial JCineCast marked the 20th year of its participation in the influential BIRTV tradeshow with a showcase of the latest cinematic lenses and technologies. With a goal of ‘Empowering Creators, Bringing Visions to Life’, the Cinematic & Broadcasting Solutions brand under Jebsen Industrial sought to help industry players ride the emerging trend of Ultra HD productions with a comprehensive range of multi-brand solutions.

Jebsen Industrial strengthens its O2O strategy. The business line’s Ingredients team has been using an active WeChat presence to boost its direct-to-consumer marketing efforts with informative articles and attractive giveaways while engaging the industry through face-to-face events. The team’s latest engagement was an expert technical seminar on food colouring at the China Ice Cream and Frozen Food Industry Expo.

MAINTAINING POLE POSITION

It is said that vision is the art of seeing what others do not see. In 1955, most people would have looked at colonial Hong Kong and seen one of Asia’s smallest territories with less than 170km of paved roads and an average speed limit of 50km/h. But Jebsen Group saw a viable market for German-engineered sports cars.

With this vision, Jebsen paved the way for the first Porsche to roll into Hong Kong in 1955 and followed up on this achievement by introducing the brand to Mainland China in 2001. Today, Jebsen is one of the largest Porsche dealer groups in the world and China has become Porsche’s largest market in the world.

At the Porsche China Dealer Conference in May 2018, it was announced that Jebsen Motors had topped the country’s dealership ranking for the third consecutive year. In a record-breaking performance, Jebsen Motors’ Porsche Centre Shenzhen Longgang and Futian was named ‘Dealer of the Year’ for the second time and all its Porsche Centres made it into the top ten.

So what is Jebsen Motors’ secret to success? MOMENTS finds out from Managing Director of Jebsen Motors Mr Joachim Eberlein.

Jebsen Motors reveals its six secrets to becoming the top Porsche dealer group in China

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1 Lay down the groundwork for a strong network

“With 10 Porsche Centres located in major cities across Mainland China and Hong Kong, we have spared no effort in building a comprehensive facility network to strengthen our presence and better serve customers,” said Mr Eberlein.

Jebsen Motors has invested in growing its dealership network and has brought new innovative retail formats to Greater China. This includes the unveiling of Porsche Studio Guangzhou, which is the first of its kind in Asia with a fully integrated and highly interactive digital experience echoing Porsche’s new retail strategy in 2017, and the introduction of Porsche City Service Centre Shenzhen Luohu, which is the first to feature design elements from the iconic Le Mans Race in 2018.

Mr Eberlein also adds that a new Porsche Centre in Nanjing is in the pipeline for 2020 and that further investments and upgrades are planned for cities such as Shanghai, Hangzhou, Guangzhou, and Shenzhen.

The reason for Jebsen Motors’ focus on a strong physical network is to serve its customers well. This ‘one-stop shop’ approach enables Jebsen Motors to offer all services that a customer might need. And with a comprehensive network of its size, other benefits for customers are also possible.

2 Deliver and delight with a premium customer experience

“Our strategic goal is to exceed customer expectations, provide a personalised experience, enhance customer loyalty, and create a ‘customer for life’,” said Mr Eberlein.

“This starts by understanding our customers. We find Chinese car buyers to be much younger than their European and American counterparts. The average age of Porsche buyers in China is between 30 and 35 years old, whereas in Germany, Porsche buyers are typically close to 50 years old. Therefore, their needs, wants, and expectations are very different,” he added.

To create customers for life, Jebsen Motors sells more than Porsche vehicles — it is offering the Porsche lifestyle.

“Every car brand has its own uniqueness. Porsche was born for the track and the racing spirit is integrated into its brand DNA. We want to help our customers experience this for themselves and have created several ways that they can do so,” said Mr Eberlein.

When it opened its doors in November 2017, Jebsen Motors’ Porsche Studio Guangzhou was the first location in Asia where customers could experience the brand’s products, history and values both in person and in virtual formats. Combining the traditional Porsche spirit with the power of new technology, Porsche Studio Guangzhou invites customers to visualise and customise their dream Porsche, explore the full range of products and services with augmented reality, or immerse themselves in the Porsche brand heritage via mixed reality technology.

3 Embrace innovation in the Internet+ era

Technology offers new and emerging ways for businesses to reach, connect,

S E C R E T T O S U C C E S S | 5

Mr Joachim Eberlein, Managing Director of Jebsen Motors, reveals the six-step formula to becoming the top Porsche dealer group in China.

Jebsen Motors sweeps the Porsche China Dealership Ranking 2017!

#1 Porsche Centre Shenzhen Longgang

and Futian

#2 Porsche Centre Hangzhou Westlake

#3 Porsche Centre Shanghai Puxi

#4 Porsche Centre Shanghai Minhang

#6 Porsche Centre Guangzhou Tianhe

#10 Porsche Centre Hong Kong and Macau

and engage with its buyers. This is true even for the luxury automotive segment in China, in part due to the country’s unique digital communication landscape.

“China has a massive online population of over 770 million people. People here, especially young urbanites, are highly connected. It is important that we serve them where, how, and when they want to be served — that means delivering an online experience that is seamlessly integrated with their offline lives,” said Mr Eberlein.

Jebsen Motors has indeed adopted an O2O strategy to connect customers, products, and services efficiently in order to deliver a seamless customer experience. Digital and social media are now used throughout the customer lifecycle, and all its Porsche Centres have their own dedicated digital and social media team.

Its online initiatives include partnering with leading auto portals for sales promotions, implementing location-based marketing, and engaging customers on social media. Customers can even make appointments for test drives via WeChat.

The results are staggering — in 2017, Jebsen Motors received more than 60,000 online enquiries, and nearly 20% of its sales were initiated through online channels.

4 Attract, develop, and retain top talent

High-performance vehicles like Porsche cars are powered by complex

engineering and advanced technology. Keeping them in tip-top shape requires specialist knowledge that Jebsen Motors prides itself on having.

Its 1,000-member strong workforce includes more than 30 Gold and Silver Certified Porsche Technicians. The international programme requires technicians to ace various theory exams that test their knowledge acquired during the Porsche training courses. To reach the high certification levels of Silver and Gold, every technician is tested directly on a training vehicle under real conditions in a practical exam that lasts several hours.

With over 30 Gold and Silver Certified Porsche Technicians, Jebsen Motors ensures that its team has the highest levels of professional knowledge and service capabilities. Naturally, talent development and retention are key management priorities, which is why, in 2016 and 2017, the business invested over HK$8 million (RMB 7 million) in talent development. This includes annual employee incentive trips, which have seen high-performing staff and their families enjoying a well-deserved break in attractive destinations like Okinawa, Japan and Chiang Mai, Thailand.

5 Make sports car culture part of life

At Porsche City Service Centre Shenzhen Luohu, customers are transported into the world of Le Mans, the oldest and most prestigious sports car race, with six themed workshops and an open design for customers to watch as skilled Porsche technicians care for their cars.

“We strive to create an atmosphere that highlights the spirit of Porsche and make consumers feel like they are right there on the track,” said Mr Eberlein.

As the sports car culture is not traditionally rooted in China, Jebsen Motors is doing its part to make it more accessible, and more enjoyable, for customers. Team Jebsen is represented at every Porsche Carrera Cup Asia since its beginning 15 years ago, regarded as

the region’s premier sports car racing series. This season, fans were treated to an amazing performance by Team Jebsen driver Cui Yue, who raced down the Fuji International Speedway in Round 2 of the Cup, and solidified his position as the fastest Chinese driver in this series.

Jebsen Motors also creates opportunities for customers to experience off-road handling, through events like Porsche Snow Force. In January this year, a select group of customers visited Inner Mongolia where they took the Porsche 911, Porsche 718, and Porsche Panamera through snow and ice under the

6 | S E C R E T T O S U C C E S S

guidance of certified Porsche and drifting instructors.

By encouraging a deeper appreciation of sports car culture, and experiencing the unique sports DNA of the Porsche brand, Jebsen Motors is nurturing a loyal and growing base of Porsche fans and lifelong customers.

6 Respect community and environment

As part of Jebsen Group, Jebsen Motors believes in doing business in a responsible and respectful manner. It promotes LOHAS (Lifestyles of Health and Sustainability) among its employees, customers, and the general public in various ways.

Mr Eberlein shares the example of Porsche Centre Shenzhen Longgang, which was the official partner and exclusive sports car sponsor for the 2016 Shenzhen Longgang Half Marathon. Over 100 Porsche car owners, Jebsen staff and their friends and families were invited

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to participate in the health promotion run, while the Porsche Centre Shenzhen Longgang deployed an impressive fleet of Porsches to serve as the lead, check, referee, time and onsite display cars.

The marathon is an excellent example not only of Jebsen Motors’ corporate social responsibility, but also its business philosophy. Partnering with Porsche for 63 years and counting, it has maintained a steady pace of growth. In that sense, the true secret to success is understanding that business is a marathon, not a sprint.

It is around 6pm. Mr Lam Lung Kam clocks out of his job as a driver with Jebsen Logistics in Hong Kong and takes the MTR and bus to Causeway Bay. There, he starts to jog. He ascends to the Peak before making his way to Sai Wan, where he lives. It is a 10km route that usually takes him two hours to complete at a leisurely pace. When he is preparing for a marathon, which is usually four to six times a year, he runs at least 40km a week.

Mr Lam is 59 years old.

“When I am not working, I prefer not to drive. It is more relaxing that way,” he said. It is understandable, given that Mr Lam has spent more than half his life driving for Jebsen. He joined the Group at the young age of 22 upon his mother’s advice.

“My mother was a cleaner with Jebsen for almost nine years before she retired. She encouraged me to work for the Group, saying that it is a well-established company with good benefits. So I gave it a shot. I first had to pass a test to prove that I could handle European vehicles. These were relatively uncommon in 1980s Hong Kong as most companies used Japanese vehicles but Jebsen represented Volkswagen back then, so we drove Volkswagen delivery vehicles,” he shared.

“Now that I think about it, my family does have many ties with Jebsen. My uncle used to work for the Group too. He sailed with Jebsen’s shipping fleet before the business was restructured to keep up with the changing times. My daughter is still in high school now but, who knows, maybe one day she’ll work for Jebsen too,” he added with a big laugh.

Making a living on the roadMr Lam’s jovial nature shines through the entire interview but when the conversation shifts towards work safety, he becomes visibly more serious.

“As someone who drives for a living, I don’t think that driving is dangerous. It is true that accidents happen, so it is important that we take the right safety measures and always stay alert and focused,” he said.

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He drives in the day, jogs at night, and goes hiking on weekends. MOMENTS sits down with Jebsen Logistics driver Mr Lam Lung Kam to find out what fuels him.

Man on the Move

He recounts a time when he saw a fellow driver get into an accident. As much as Mr Lam wanted to go to the driver’s aid, he was forced to keep driving because the accident happened inside a tunnel and stopping his vehicle would hold up traffic. Not being able to help still weighs heavily on Mr Lam’s mind.

And while Mr Lam counts his blessings that he has not been involved in any major accident, he has suffered from work-related injuries. For a period of time, Mr Lam suffered from sciatica — back pain caused by a problem with the sciatic nerve, which runs from the lower back down to the back of each leg.

“In the past, we had to use a lot of force to push the brakes. I think the repeated pressure caused the condition. It hurt so much that I even had to eat while lying on my stomach. I’ve since made a full recovery and I hope never to go through that again, so I make it a point to use a back support cushion now,” he said.

Finding a friend in technology Having been behind the wheel for 37 years, Mr Lam is a big fan of technology as it has made his job easier and safer in many ways. Besides power assist for braking and steering, he lists GPS navigation systems as an example.

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Man on the Move

“At Jebsen, drivers are rotated to different districts each month. Some districts are harder to navigate than others, and we used to only have physical maps to guide us. There was once I had to make a delivery to Tin Shui Wai after dark. There were no street lamps or road signs. I couldn’t pull over to check the map for fear of getting a traffic ticket. I had to wind down my window and, while driving slowly, ask passing bus drivers and taxi drivers for directions. With GPS navigation systems now, it is not only easier to find my way, it is also much safer.”

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Even though Mr Lam gives technology a thumbs up, he has reservations about the feasibility of self-driving vehicles, especially on Hong Kong’s congested roads. In the context of his work, Mr Lam also points out that a driver does more than just driving.

As part of his job, Mr Lam loads and unloads goods with the assistance of one or two helpers. This task is not only physically demanding, it also takes an experienced hand to do it well. Mr Lam reveals that there are techniques to stacking the boxes such that they are secure and easy to locate.

“While driving, there may be times when we need to brake suddenly. If the boxes are not securely packed, there is a high chance that they would topple over. We deliver a lot of fine wines, for example. If a carton breaks and red wine spills onto the other boxes, the damage goes far beyond that single carton,” he explained.

Seeking respite in different ways “I enjoy my work. I’m a naturally upbeat person so I don’t find it monotonous, especially when I’m accompanied by good music. But at night, when I lie in bed and feel the tension melt away, that’s when I realise that it has been a long and tiring day,” said Mr Lam. Aside from jogging, which he says is a great way to clear his mind, Mr Lam also enjoys hiking.

“I like to round up a couple of likeminded colleagues to go hiking on our off days. The MacLehose Trail is my favourite because every hike is different. There’s also something very soothing about being in

because they finally received the cataract surgery that they needed, I realised the difference that Jebsen is making to people’s lives. I was very touched,” he said.

“The field trip was a great experience but it also cost me two weekends of hiking. I’m making up for it this weekend,” he said, proving that he is truly a man on the move.

Lam Lung Kam’s Playlist

• Hallelujah by Helene Fischer

• You Raise Me Up by Helene Fischer

• Nothing Else Matters by Lucie Silvas

• Bridge Over Troubled Water by Josh Groban & Jen Malenke

• I am Sailing by Helmut Lotti

• Little Drummer Boy by Helene Fischer

• One Moment in Time by Dana Winner

• Let it Be by John Legend

• Candle in the Wind by Elton John

• When You Believe by Whitney Houston & Mariah Carey

• Perfect by Ed Sheeran

nature,” he said, referring to the 10-section, 100km-long country trail that winds through Hong Kong’s New Territories.

Mr Lam is also an avid competitive runner and jumps at every opportunity to experience something new. He loves the fact that the Group is a big supporter of charity walks and has participated in many Jebsen-supported events. In 2016, he was part of the four-member Jebsen team, which included Group Managing Director Mr Helmuth Hennig, that participated in the Outward Bound Multi Race — a 13km challenge of on- and off-trail running, kayaking, swimming and orienteering obstacles. He also took on the overnight Moonlit 30km challenge as part of MoonTrekker in 2014 and 2016 to raise funds for The Nature Conservancy, and served as consultant for the team in 2015 and 2018.

Most recently, Mr Lam volunteered for a field trip to Chaozhou and Mongolia for ‘Project Morning Star’, an ongoing sight-saving partnership between Jebsen Group and Orbis.

“It has been my dream to see the Orbis Flying Eye Hospital for myself. And since this mission trip was to Chaozhou, I could also put the local dialect skills that I picked up from my mother to good use. Having met many elderly beneficiaries who are overjoyed

Growing the Cable Technology Portfolio

JJ-Lapp Cable, a joint venture by sister group Jebsen & Jessen (South East Asia), has completed its acquisition of Zi-Argus Ltd’s Phoenix Contact distribution activities in Thailand. Zi-Argus has been the authorised distributor of Phoenix Contact products in Thailand since 2008.

“This acquisition is our first step to expanding our existing product range in connectivity solutions,” said Mr Mike Winzerling, Regional Managing Director of JJ-Lapp Cable. He shared his confidence that a broader portfolio will allow the business to become more relevant to its customers, while facilitating greater cross-selling and solution-selling opportunities. The move is in line with JJ-Lapp Cable’s ‘Create 2020’ strategic roadmap, which is centred on providing solutions, rather than products and services, based on customer needs.

With contributions by Anthea Ho

A Family Meeting

On May 14, 2018, Jebsen & Jessen Hamburg celebrated its strategic milestones at the Koerber Stiftung Forum, a town hall meeting that was attended by close to 150 employees.

During the session, Managing Partner Mr Fritz von der Schulenburg outlined the Jebsen & Jessen Family Enterprise’s 123-year heritage, highlighted the sister group’s strategic milestones, and looked into the future by sharing the need to transform into modern business models. Employees were also introduced to the sister group’s new corporate structure including the foundation of its new affiliates and offices in USA as well as South and Central America. The town hall meeting was also an opportunity to thank employees and reinforce the importance of human capital in the group.

With contributions by Dagmar Glissmann

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Building the Brandenburg State Parliament

In one of the oldest settlements in Potsdam, Germany once stood a city palace. Ruined during World War II and demolished after, efforts to revive the city began in 1999. This included plans for a new parliament building to be constructed within the perimeter and outline of the historic Potsdam city palace and in close replication of its original structure and appearance.

The Brandenburg State Parliament features new and existing sculptures on its outer façades. The heavy load on the parapets required a substructure of custom-designed brackets made of at least 15mm thick stainless steel. In order to cut such a hard and thick material with precise contours, and to eliminate the need to weld the components together, the brackets were produced via waterjet cutting using GMA ClassicCut 80 by sister group GMA Garnet.

With contributions by Stephanie Cheong

2018 EMPLOYEE INSIGHT SURVEY RESULTS

2013 2015 2018

15%46% 52% 61%

Group Employee Participation Rate

2013

2015

2018

80%

88%

86%

Corporate Responsibilities

Vision, Goals & Objectives

Workplace Safety

Work Tasks

Let’s work together to make Jebsen a great workplace!

People Focus

Learning & Development

Leadership

Communication

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Areas That EmployeesAre Most Satisfied

Areas That The Group Needs To Work On

Group Employee Engagement Score

About Jebsen GroupJebsen Group is a Hong Kong-headquartered company representing quality products, services, investments and solutions across the beverage, consumer, industrial, motors, and logistics industries, which enables some 200 of the leading product companies and their brands to successfully market their products throughout the Greater China region. Brands are attracted to Jebsen because it has a track record of adding value to their presence in Greater China and because it has built consumer trust in its company and partners. Jebsen’s success in Greater China is complemented by the demonstrated commitment to being a responsible business partner, employer, and corporate citizen. Outside the region, the Jebsen Group enjoys close ties with sister companies in Australia, South East Asia, Denmark, Germany, Middle East and the United States. For more information, visit www.jebsen.com.

• Employees expect the Management of the Group, Business Lines and Departments will demonstrate more effective leadership and provide clear direction for future of the Group, Business Lines and Departments.

• Employees expect more effective communication taking place within the Group.

• Employees expect the Group will provide more opportunities for them to build new skills that are valuable to their growth and development. Employees also expect to receive appropriate and relevant training and knowledge that help them perform better at their job.

• Employees expect the Group will treat them as valuable members of Jebsen Group and will consider their well-being when the Group makes decisions. Employees expect the action items implemented will be based on the survey results.

• Employees perceive that their job roles are aligned with their expectations and enjoy their day-to-day work tasks.

• Employees agree that the Group considers that workplace health, safety and security are important.

• Employees perceive they have clear understanding of Jebsen Group’s Vision, Goals and Objectives.

• Employee agree that the Group recognises the need to balance social, environmental and financial responsibilities.