1. Haier Opening Benelux Office 12th of June 2012

2. Agenda Haier Group Haier in Europe Haier Benelux Questions?
Strategy
Core Values
Products
Haier in Europe
Branding
Build The Future
Haier Benelux
Questions?
Visit showroom

3. Haier Group

4. Haier, A Leading Global Brand
According to the leading business intelligence firm Euromonitor International, Haier is the number one brand of Major Appliances in the world with a 7.8% retail volume share in 2011*.
Haier also ranks* number one in refrigeration appliances, freezers, home laundry appliances and electric wine cellars.
Euromonitor Brand Market Share (%)
Brand
2006
2007
2008
2009
2010
2011
Haier
3.9
4.5
4.9
5.9
6.8
7.8
Key figures:
70,000 employees worldwide
Strong network of 133,000 retailers
Presence in 165 countries throughout the world (30 in Europe)
*Source Euromonitor International Limited;
retail volume sales in units based on 2011 data.

5. A Global Brand With Local Operations
Haier is a worldwide brand with a strong focus on local management and production. Gradually reinforcing its local presence, the main group headquarters are located in Qingdao (Asia), Paris (Europe), and New York (Americas).
Europe 8 3 1
12,622
Americas 1 2 4
10,860
China 42 2 17
105,647
Middle East & Africa 1 7
3,750
Asia Pacific 12 2 14
10,451
64 Trading Companies
10 R&D Centres
45 Production Facilities
143,000 Sales Networks

6. US$23 Billion in Worldwide Sales
Haier has showed consistent growth over the last three decades, achieving a record turnover of $23.3 Billion in 2011 (vs. $20.7 Billion in 2010).

7. Internationalisation
Since its inception in 1984, critical development stages have been handled
Stage 1
1984-Late 80’s
Brand Creation
Stage 2
90’s
Diversification
Stage 3
Late 90’s-00’s
Internationalisation
Stage 4
Late 00s-10’s
Global Branding
1984: Haier Group founded in Qingdao with a commitment to quality as its cornerstone and with a single product line of refrigerators
Diversification through acquisition of factories
1990: Initiation of internationalisation with the first export of refrigerators to Germany
1999: New phase for globalisation with the opening of the first US factory in South Carolina
2001: Further product facility acquisitions (Italian Factory) / set up of factories throughout the decade
Set up of dedicated sales organisations in all continents
Opening of local R&D centres in major geographies
2009: For the first time, Haier ranks as No. 1 brand of Global Major Appliances market in terms of volume share
2010: New phase for development to assert Haier position as a leading brand and bring it to the top 5 worldwide brands

8. Haier International Development Key Milestones
1984
Haier Group is founded in Qingdao, China – with a commitment to quality as its cornerstone and with a single product line of refrigerators
1990
Haier enters the European market by starting exporting refrigerators to Germany
1999
Haier opens a factory in South Carolina, US, initiating production in America
2001
Haier acquires the Italian Meneghetti refrigerator company, in Campodoro, Italy, initiating European production
2005
Haier establishes sales companies in Europe, with 5 branches established in France, Italy, Spain, Germany and the UK
2009
For the first time, Haier ranks n°1 brand in the Global Major Appliances market according to Euromonitor International
2010
Haier nominates a new CEO in Europe and open European HQ in Paris
Haier sees a very strong development of its activities, including in Europe with entry in all major distribution networks. Haier opens an R&D centre in Germany specialising in dishwashers
Haier acquires Sanyo Asia
2011
2012
Haier opens offices in Benelux and Poland. It also launches Home Solutions, its new division and opens a R&D center in Lyon (France)

9. Strategy

10. Maximise products, market segments and geographic coverage
A Strategy Relying on 6 Dimensions
Product Range enlargement
Coverage of all market segments
Geographic Development
Maximise products, market segments and geographic coverage
Industrial Platforms
R&D
Innovation and Design
HR Empowerment Philosophy
Ensure that the organisation delivers the most innovative / breakthrough products while maximising cost efficiency

11. Levers to Maximise Brand Development
Product Range enlargement
Pursue and accelerate efforts to extend product range coverage
Eg. Cooking products
Eg. Development of Home Solutions:
Solar thermal systems
Air Conditioning
Heat Pumps
Coverage of all market segments
Pursue and accelerate initiatives taken to cover all market segments including the top notch segment
Geographic Development
Assert and increase position of Haier in priority markets
Chinese Market
North America
Europe
Asia/Pacific
Prioritise development in Emerging Markets
India
South America
Africa/Middle East

12. HR Empowerment Philosophy
Levers to Enhance Product Innovation, Manufacturing and Organisation Efficiency
Industrial Platforms
Pursue and accelerate efforts to strengthen existing industrial platforms through the extension and upgrading of existing manufacturing lines
Set up local industrial platforms to best meet local needs and ensure maximum reactivity (minimise product lead time)
R&D
Accelerate R&D efforts
Maintain R&D investment of 4% of turnover
Keep on mobilising the 8,000 R&D dedicated employees involved in innovation programmes worldwide
Accelerate the opening of new local R&D and Design Centres (Eg. Germany for white good products; France for Home Solutions; Japan for white good products )
HR Empowerment Philosophy
Share and deploy efficient management practices that will allow values of courage, self-determination and ability to “think out of the box” to grow (inverted triangle and ZZJYT management innovation programmes)

13. Core Values

14. Quality
At Haier, quality is the foundation upon which the brand’s reputation is built.
Service Quality
Customer satisfaction and service excellence are essential to Haier (after-sales and customer service dedicated centers).
Product Quality
Reliability, durability and performance are ensured by rigorous quality control procedures.
Environmental Quality
Haier is truly committed to going the extra mile to incorporate environmental concerns when developing new products.
Service Quality
Guaranteed customer satisfaction and service excellence (service centres that speak 15 different languages, strong after sales network)
Product Quality
Reliability, durability and performance are ensured by rigorous quality control procedures.
Environmental Quality
Haier is truly committed to going the extra mile to incorporate environmental concerns when developing new products.

15. Design
The contemporary home has evolved. Appliances and televisions are now as much ‘part of the furniture’ as the furniture itself.
Haier is at the forefront of understanding and interpreting trends.
Our designs have earned numerous international awards and each product category has a defining aesthetic such as Haier Glass Design® home appliances.
Haier Glass Design® refrigerators range, winner of the 2011 IFA Preview design award

16. Innovation Innovation is at the heart of Haier’s strategy.
Particular efforts are put to develop the products of tomorrow :
4% of turnover invested in R&D
8,000dedicated employees involved in innovation programmes worldwide
12,300 patents
4,200 certified inventions
German Engineer
Transparent TV prototype

17. Corporate Social Responsability
A Human Company
Seeking to promote the wellbeing and happiness of its customers and collaborators
A sustainable Company
Water and electricity consumption concerns when developing new products
Electronics recycling schemes
Encourage eco-awareness and responsibility amongst end users.
Organisations & Causes
Supporter of the WWF Earth Hour operation worldwide
Sponsor of the American National Parks Conservation Association

18. Haier Products

19. Comprehensive Product Portfolio
Cooling, Washing, Television, Multimedia and
Home Solutions product ranges

20. Refrigerators
World’s leading refrigerator brand with 13.7% volume market share in 2011 (source: Euromonitor)
Annual production capacity: 18 Million units
Highlights:
Stylish and functional Haier Glass Design® range
MyZone innovation

21. Televisions Annual production capacity: 10 Million units Highlights:
State-of-the-art television sets with LED technology
Numerous functional innovations: USB Recording, Timeshift
Wide range of sizes: from 19” to 55”

22. Washing machines
No.1 brand in the world with 10.9% retail volume share in 2011 (source: Euromonitor)
Annual production capacity: 10 Million units
Highlights:
High-efficiency programmes that use less water and energy
Exclusive Antibacterial Treatment eliminating more than 99.8% of bacteria

23. Dishwashers Annual production capacity: 1 Million units
R&D center opened in 2011 in Germany
Highlights:
Increased load capacity
Reduced noise levels

24. Wine cellars
No. 1 brand in the world with 16.8% volume market share in 2011 (source: Euromonitor)
Annual production capacity: 0.5 Million units
Innovative technologies:
Active-carbon filter to keep wine in perfect atmospheric conditions
Vibration absorbing technology optimises wine protection

25. Investing to build the future in a sustainable way
Home Solutions
Strong industrial background in energy and water treatment solutions
Complete range of products including solar panels, solar water heaters, heat pumps, water softeners and air conditioners
At 2008 Beijing Olympic games, Haier became the first official provider of energy efficient products in Olympic history supplying 60,000 sustainable products.
Air Conditioner Annual production capacity: 28 Million units
Investing to build the future in a sustainable way

26. Haier in Europe

27. Haier’s European operations
European presence in 30 countries
Russia
United Kingdom
Poland
Benelux
Germany
France
30 countries
European HQ in France with support functions in Italy
R&D / design centres in Italy, Germany and France
Manufacturing plant in Italy
Italy
Spain
Haier local offices
Haier products available

28. European Strategy
As a worldwide leader in home appliances, Haier has an ambitious development programme in place to become a major European player.
Product development: extending product ranges to all market segments to respond to most consumers need.
Distribution: reinforcing partnerships with large market distribution networks as well as with local businesses.
Branding and marketing: accelerating the awareness and recognition of the Haier brand image
New organisation in Europe implemented in 2010:
Europe CEO
Marketing / sales: Product and communication marketing teams
Support functions: HR, Finance, Logistics, IT, etc.

29. Strong Organisation & Recruitment of Industry Experts
CEO
René Aubertin
General Manager
Sun Shubao
Finance &
Administration
Logistics &
Projects & IT
Human
Resources
Marketing Product
Marketing &
Communication
Customer
Service
Home
Solutions
EU CFO
Richard Cao
Logistics IT business
Support Director
Severin de Pommery
HR Director
Catherine
Bernard-Le Gault
GM Mktg
White Goods
Jean-Franck
Badalian
Marketing
& Sales TV Mgr
Christophe
Chancenest
Eastern Europe
Sales
& Devpt GM
Patrick Drugeon
Com Mktg
Director
Olivier Faucon
C.S.S Dir.
& Quality
Stefano Locatelli
GM For
Home Solution
Patrick Bailly
Tax & TP Dir
Mauro
Pramaggiore
Italy
Market Director
Enrico Ligabue
Russia
Market Director
Sun Zhenhua
Benelux
Market Director
Thierry Destexhe UK
Market Director
Wei Duan
France
General Manager
Cédric Audebert
Poland
Market Director
Jarosław Piekut
Germany
Market Director
William Cantara
Spain
General Manager
Santiago Belenguer

30. Branding

31. Advertising
Press
Web TV
Street Marketing
Outdoor
Football stadiums

32. Haier Mascot
E-Zy: The smart and friendly robot used for online and offline communications
To be launched on June 8, 2012 – Sports / Euro Cup Facebook game

33. Virtual Showroom www.haier-showroom.com Launched in 2011
Available 7 languages

34. Tradeshows & fairs
In order to ensure the visibility of our products, Haier is not only present at major consumer and professional tradeshows such as IFA in Germany, CES in the U.S., Canton Fair in China, but also at local fairs.
TV Wall IFA 2011
TV Booth IFA 2011

35. Sport, Arts & Culture
Haier is a keen patron of the arts and culture. We believe that art is a universal language able to generate cultural exchanges whilst sport has the power to unite people across the globe.
Deauville Asian Film Festival: official sponsor of the annual event
Art Exhibition of The Forbidden City at The Louvre: Treasures once housed in the Forbidden City of Beijing, were exceptionally presented at the Louvre in Paris thanks to the support of Haier

36. Investing to Build the Future

37. R&D Center in Germany
Cutting edge research, development and design centre opened in 2011, located in Nuremberg, composed of a team of 29 German engineers and experts, specialised in white goods products
With 550 sqm research and design facilities:
To improve the existing range of products.
To develop a new approach to design in terms of aesthetics
Performance laboratory
Hydraulic laboratory
Electronic laboratory
Prototype shop
Software simulation unit

38. Industrial development
Haier keeps on investing to develop its international business. Local investments are made worldwide to support the brand’s market presence in all continents. It is an essential aspect of Haier strategy to design and manufacture products in different parts of the world, customizing them for specific national and regional markets:
In Europe, in order to further improve its supply chain, Haier is considering new investments in the next 3 years.

39. Conclusion Haier’s target : to reach the European top 5
Core success factors implemented to reach that objective:
New organisation
Team of specialists
R&D investments
Efficient sales structure (zero distance, after sales service)
Product development

40. Haier Benelux

41. Why the Benelux? Purchasing power
The economic situation in the Benelux region is positive compared to some of our fellow European countries, such as Spain.
BNX Market lead by Quality and Design
Customers willing to buy value for money, tend to focus on product quality and design first and foremost
Geographic position
Connecting France & Germany - two markets where Haier is already present via Brussels & Amsterdam
Coherence
Local sales offices ensure the same brand and service strategy as implemented across the rest of Europe
Service Quality
Guaranteed customer satisfaction and service excellence (service centres that speak 15 different languages, strong after sales network)
Product Quality
Reliability, durability and performance are ensured by rigorous quality control procedures.
Environmental Quality
Haier is truly committed to going the extra mile to incorporate environmental concerns when developing new products.

42. Years of preparation… Distributor Home Office Haier Benelux Office
Collaboration started in 2009
First steps on the Benelux market
Get to know the market & competition
Home Office
Opening of home office in 2011
Distribution via partner
Internal sales force
Haier Benelux Office
Official opening today
Changes in distribution structure
Changes in European structure

43. Benelux Team Regional team, headed by Thierry Destexhe
Local organisation for Belgium, Luxembourg & The Netherlands
Launch of Haier.be and Haier.nl in January 2012
Major Retailers in Belgium:
Major Retailers Netherlands

44. Benelux Team: Objectives
Thierry Destexhe
Create the right team to achieve market share objectives
Haier: No. 1 choice of supplier &
leader in customer satisfaction
Sarah Muylle
Customer Service/Logistics
01/03/2012
Dean de Winter
Accounting/After Sales
17/04/2012
Improve in-store presence
and product presentation
Maxime Weber
Sales BEFR /Product Marketing
01/04/2011
Michel de Meyer
Sales BENL
01/07/2011
Bart Van Hardeveld
Sales NL
01/01/2012

45. Results X 2 2010 - 2012: Only on existing product categories
New product categories and models to be launched in 2nd half of 2012
X 2

46. Challenges
Objective: 5% market share in 2015 in Haier’s main product categories
Combination of Unbeatable Quality / Innovation / Design / Eco performance / Price offer
Brand Awareness: Bring Haier’s product quality to the forefront
Cooling:
Short Term: Launching A ++ and A+++ No Frost
Focus on design, innovation and eco performance
Freezing
Short Term: Launching A +++ Chest Freezers and A ++ No Frost 1 Door
Washing:
Short Term: Launching ABT innovation : 82 Series A+++ and A -50% Dryers
Focus on washing performance and eco performance
Television:
Short Term: New Z 18 series in large sizes
Focus on design and ease of use

47. Questions & Answers

48. Thank you for your attention
Enjoy your visit of the showroom