ANNUAL REPORT 2012

2012 Annual Report, Financial Results & Outlook

Transforming Technology Solutions

Annual report 2012 1

CONTENTS
GROUP OVERVIEW

Executive Chairmans Statement

Chief Executive Officers Review

Key Business & Financial Highlights

FOCUS ON SERVICES
Repair

Regeneration

10

Value Added Logisitcs

12

OUR COVERAGE

17

CREATING NEW VALUE FOR OUR CUSTOMERS

18

MARKET DYNAMICS
Focus on France

20

Focus on Spain & Latin America

22

Focus on United Kingdom

24

ANOVO IN YOUR MARKET

France, Belgium & Switzerland

28

United Kingdom

30

Spain

32

Latin America

34

Poland

36

FINANCIAL STATEMENTS
Consolidated Financial Results

38

Annual Report 2012 1

2 Annual Report 2012

GROUP OVERVIEW

GROUP OVERVIEW
ANOVO is a leading provider of after sales services
within the telecommunications, access and consumer
electronics markets supporting a broad range
of product technologies. We cover mobile and
smartphones, computers, touch screen tablet devices,
triple play set top boxes, home gateways, game
consoles, e-readers and TV and printing products. With
operations in 10 countries, the Group offers companies
and individuals repair, logistics and product recycling
services across Latin America, Europe and Asia. Our
integrated services make it possible to extend the
lifecycle of high-tech products, increasing their value
and reducing their environmental footprint for our global
customers. On that basis, every year ANOVO offers a
second life to more than 20 million products.

Our service business is comprised of 3 segments

which optimally integrate logistics, repair, regeneration
and recycling services supported through a network
of specialised service centres and global freight
partners. These core capabilities together with the
deployment of new technology-based services such
as on-line diagnostics and support, repair avoidance,
and insurance support services, allow us to deliver
innovative and cost effective supply chain solutions
to the technology market place. Increasingly we are
placing these services either closer to the customer
by means of call centre applications and walk-in-repair
services, or within the supply chain itself in forward and
reverse hub operations.
We are committed to deploying this strategy across all
the markets in which we operate and to be recognised
as a market leader in technology supply chain solutions.

Annual Report 2012 3

EXECUTIVE CHAIRMANS STATEMENT

I am pleased by the progress of the new ANOVO

Group after the first year and proud of the numerous
achievements of its 4,500 employees world-wide.
The foundations of the new ANOVO Group are good
based on a unique European service coverage,
long-term customer relationships and a broad set of
capabilities ranging from core repair and refurbishment to
regeneration services.
A year later, the Group, re-positioned and within a strong
financial structure, is providing a more diversified portfolio
of after sales services to a growing base of first class
international customers.
The progress made in this first year clearly demonstrates
the capacity of the Group to adapt in a challenging and
complex environment, which is a key competitive advantage
in a world where technology is rapidly changing.
The Group has intelligently evolved its service offering
with a clear objective of bringing more added-value to all
of its customers, everywhere, every time.

4 Annual Report 2012

The conditions are set for ANOVO to expand into new

markets and technologies and enhance its long-term
international strategy. The expansion in Latin America
with our new facility in Colombia, and the addition of
a new site in China this year reflect the momentum
already created and the significant opportunities we see
emerging in this market.
As a leader, our aim is to remain at the forefront
of innovation.
In the period since the year end, current trading has
been good, in line with our expectations, and we intend
to take full advantage of the markets consolidation and
geographical needs.
Walter Butler
Executive Chairman.

CHIEF EXECUTIVE OFFICERS REVIEW

2011-2012: A transition year. In the already long ANOVO

history, our current work will appear as a transition year.
We have renewed the Management Team and more
importantly are transitioning towards an evolved business
model. ANOVOs business is moving rapidly from a
traditional consumer technology repair and refurbishment
model to a service solutions business. Our primary goals
are aimed at:
enabling operators and retailers to optimise revenue streams
supporting manufacturers in the delivery of their
technological promises.
Augmenting our traditional repair and refurbishment
services, ANOVO has now developed market leading
solutions for Returns & Repair Avoidance and
Regeneration & Remarketing of technological devices.
In a challenging business environment, where some of our
major customers are suffering significant volume decreases,
ANOVO has managed to deliver both sustained growth and
profitability. We are addressing new market opportunities,
such as the development of bespoke solutions for insurers
by combining out of warranty product repairs with the
procurement of Grade A replacement products.
From a geographical perspective, we continue to view
Latin America as a strong development opportunity, both
in the countries we already support (Chile and Peru) and

in the countries where we are establishing new operations

currently (Colombia and Brazil). In Europe, our focus will
be primarily in Germany through organic growth and
leveraging partnership opportunities.
If I reflect on the first 6 months of my tenure as CEO of
ANOVO, one word comes immediately to mind, loyalty.
Loyalty of our customers, who depend on our excellence
every day, but also loyalty of all of our employees throughout
the 10 countries and the 21 service centres in which we
operate. I would like to take this opportunity to personally
thank them for their renewed trust and commitment.
New challenges await for the next year. We need to
continue our transformation and be ready to adapt to
our customers changing environment. We need to
explore new markets and embrace the convergence of
new technology in the home with devices forming an
integrated and complex eco-system. ANOVO needs to
continue to rationalise and improve its operations through
harmonisation of our best practices and deployment of our
IT solutions. Finally, we need to continue to grow profitably.
I am confident that all ANOVO employees will deliver on
these expectations.
Franois Lacombe
Chief Executive Officer.

Annual Report 2012 5

SALES BY REGION
Latin America
10%
Spain
20%
United Kingdom
29%

Belgium, Switzerland & Poland

7%

France
34%

REVENUE SPLIT BY CUSTOMER TYPE

Retailers
5%
Insurers
5%
Operators
37%

Regeneration
19%

Manufacturers
34%

KEY FINANCIAL HIGHLIGHTS

REVENUE

255.4M

EBIT

5.3M

EQUITY/QUASI EQUITY

21.9M

NET FINANCIAL DEBT

8.1M

* Figures include 12 month consolidated trading for all entities, excluding ANOV France SAS which completed an initial 11 month trading period from November 2011 September 2012.

6 Annual Report 2012

KEY BUSINESS &

FINANCIAL HIGHLIGHTS

KEY BUSINESS & FINANCIAL HIGHLIGHTS

First year financial results, ending September 2012,
show a successful turn-around of ANOVO under
new management.
The Group reports revenue of 255.4 million and an
operating profit of 5.3 million, which exceed first year
forecast and expectations made after the acquisition in
November 2011, and confirm the solid recovery in our
global business.
The Board is executing a balanced growth strategy
committed to a geographical expansion of core
business segments in high volume growth markets, and
investment in innovative, value-creating, technologybased services for our customers in mature markets.

New facilities have been added in China with two

sites located in Shenzhen and Shanghai providing a
platform for global trading and sourcing of electronic
equipment. Regeneration and recycling activities
account for 20% + of Group revenue and the business
trades in excess of 1 million products annually.
Investments in innovative, technology-based services
such as returns and repair avoidance tools, and
insurance supply chain services have successfully
delivered value-creating and sustainable service
solutions for key customers.

Above forecast revenue and operating profit achieved

across all ANOVO Group entities, whilst the
re-organisation of the ANOV France SAS legal entity
was completed during the last year.

Rationalisation and optimisation of ANOVO

operations has continued through the release of a
new proprietary IT solution and the integration of
off shore repair and refurbishment flows from its
centralised repair operation in Poland providing a
cost-efficient and high yielding material supply chain.

Within this trading period significant customer contract

renewals have been signed across all business
segments, notably with O2, Prisa TV, RIM, Samsung,
TalkTalk and HP underlining customer loyalty and
reliance on ANOVO for its core after sales services.

Heading into full year 2013, ANOVO has expanded

its footprint with operations in China and Colombia
and now supports customers through a network of
21 specialised service centres and logistics hubs in
10 countries.

Annual Report 2012 7

REPAIR
We have continued our programme of investment
in our industrial sites to maintain our leading edge
capability in high volume product screening, repair
and refurbishment services. These core services are
being deployed with our customers in their high growth
markets such as Latin America and we have recently
opened a new repair centre in Bogota, Colombia.
Significant opportunities are emerging for the Group as
we expand our service network across Latin America.
Within Europe, we have capitalised on the technical
expertise and cost-efficient repair capabilities of
our Poland operations and significantly increased
the volume and product diversification of off-shore
repair and refurbishment. Our Poland operations now
support multi-product technologies covering repair of
smartphones, tablets, notebooks, broadband access
equipment, digital set-top-boxes, printers and LCD
panels and displays. This is the first step in our plan to

8 Annual Report 2012

establish the required capabilities and supply chain to

access customers in Germany where we will start our
first operations in 2013 within a partner hub facility.
ANOVO is addressing our customers requirement
to offer a balanced combination of rapid same
unit warranty repair services with centralised
swap, refurbishment and insurance replenishment
programmes and is creating a network capable of
delivering these services across Western Europe.
Returns & repair avoidance tools
Online, in-store & call centre solutions
DOA screening & refurbishment
Warranty & out of warranty repair management
Insurance accidental damage repair

FOCUS ON SERVICES
REPAIR

Annual Report 2012 9

REGENERATION
Mobile phone penetration and demand for the latest
technology and high-end smartphones is increasing
globally. These factors combined with current macroeconomic conditions are forcing customers to look for
the best available offers either via SIM only contracts,
competitive lower cost operator contracts or buyback offers. The market for second hand devices and
recycling of technology is booming.
ANOVO is successfully deploying its regeneration
business across the Group and last year sold in excess
of 1 million devices globally through its network.
Revenues this year are expected to reach 25% of the
Groups revenue as we expand and differentiate our
services in this very important market.

10 Annual Report 2012

Recycling and regeneration of products is now a

strategic option for all of our customers and we are
creating the diversified channels required to acquire,
source and re-market a high volume of electronic
equipment and devices. The global deployment of
ANOVOs own brand Love2recycle direct to consumers
as well as the rapid expansion of our customer recycling
or buy-back programmes has created a significant
increase in globally sourced products. In parallel, we
have expanded our sales network in Eastern Europe,
Emerging Markets and Asia to meet global demand.

FOCUS ON SERVICES
REGENERATION

Web Tracking
Valuation Tools
Spare Parts Re-use
Sourcing
Refurbishing
Recycling
Reselling
Trading
B2B and B2C Buy-Back
B2C Websites:

Annual Report 2012 11

VALUE ADDED LOGISTICS

We understand the need of our customers to review
with ANOVO the effectiveness and efficiency of their
total forward and reverse business, not only the
customer support and product repair costs. Our priority
is to focus on adding value throughout the entire supply
chain, developing models which are flexible in their
execution, and reducing end-to-end service costs. The
integration of our services aims to minimise product
movement, avoid unnecessary touch points and
handling, and optimise inventory levels in support of the
equipment repair processes.
Our approach to technology logistics services has led
to the creation of an integrated spare parts and repair
hub in the UK for one of our key clients. ANOVO has
embedded its repair operation, systems and skilled
engineering team inside our customers preferred
logistics hub to create an efficient service model
delivering market-leading benefits.

12 Annual Report 2012

Single shared site costs for spare parts hub and

repair operations.
Lower unit repair costs.
Elimination of parts shipping costs to distributed
repair network.
Reduction in parts handling costs using linked
in-house inventory.
Repair turn-around-time improvement by 24 hours.
Customer Rapid Response service launched to drive.
Customer service differentiation in the market.

FOCUS ON SERVICES
VALUE ADDED LOGISTICS

ANOVO provides a full range of support logistics

services within its core segments. We will continue to
develop our partnerships with global freight suppliers
where customers are seeking co-located or integrated
service and supply chain processes. Additionally, as we
grow our business-to-consumer services for product
returns and asset buy back, we are extending in all
countries our end-user applications for using local drop
and collect service point networks.

Forward Logistics
CTO and Kitting Services
Pre-release Validation and Testing
Reverse Hub Logistics
Returns Management
Spares Management
CRM & Tracking Systems

Annual Report 2012 13

OUR COVERAGE

The Group has operations in 10 countries supporting our

customers through a network of 21 specialised service
centres and reverse logistics hubs. We are optimised to
deliver innovative and cost effective supply chain solutions
to our customers technology and their multi-channel
customer base.
ANOVO is a leading provider of after sales solutions
within the telecommunications, access and consumer
electronics markets. We support a broad range of product
technologies and value-added after sales services for major
Operators, OEMs, Retailers and Insurance companies.

Annual Report 2012 17

2
7
1

11
6

OUR COVERAGE
1
2
3
4
5
6
7
8
9
10
11

FRANCE
UNITED KINGDOM
SPAIN
PERU
CHILE
POLAND
BELGIUM
SWITZERLAND
COLOMBIA
CHINA
GERMANY (planned 2013)

10

Creating new value for our customers

One of the key transformational objectives
for the Group is to intelligently evolve our
business model to bring more addedvalue to all of our customers. The loyalty
and trust placed by customers in our core
business has been a very strong platform
and has helped us build strong working
relationships with our customers. The
emphasis now has shifted to innovation
and creating long-term sustainable value
for our clients. Together we are investing
significant time and resources in identifying
the main challenges our customers face
and bringing a range of new technology
services to market.

CPP operates in the insurance and claims management

market and ANOVO provides the service of repair and
replacement for mobile devices. Currently we are both
part of the Yoigo mobile insurance program developed by
CPP, in which ANOVO operates as the service provider
for the analysis of breakdowns and repair service of the
insured handsets.
Our experience with ANOVO has been very positive.
We have deployed a very efficient and automated claim
management process for breakdown analysis and handset
repairs through their online platform that is shared with the
Yoigo team.
The quality and level of service provided by ANOVO meets
CPP requirements. ANOVOs cost control measures and
quick response time has resulted in ANOVO being a
supportive and preferred partner for us in the provision of
handset breakdown, repairs and replacement.
Angel de Len Ceano Vivas
Managing Director SE & LATAM

18 Annual Report 2012

CREATING NEW VALUE

FOR OUR CUSTOMERS

ANOVO has worked closely with Nokia over the last several months to
develop and build a comprehensive solution that is customer friendly
and simple to use. It has constantly evolved to ensure the latest
information and solutions are available allowing for a reduced number
of returns and reduced cost. This solution has exceeded initial
expectations and has plenty more to offer.
Matt Channing
Head of Care UK & Ireland

The positive feedback from Nokia highlights the success of this new
technology. We are very excited to support the roll-out of this solution
to our customers in all countries of operation.

Annual Report 2012 19

18
5

AVERAGE CONTRACT LENGTH 18

MONTHS

HANDSETS ARE NOW DESIGNED TO LAST UP TO 5

ACROSS FRANCE MORE THAN 100

AVERAGE VALUE OF A TRADED DEVICE

THEREFORE

MILLION HANDSETS IN

DRAWERS

100

10 BILLION WORTH STUCK IN DRAWERS, GATHERING DUST!

The opportunities we see in the regeneration and

recycling market have led to the creation of a separate
global business unit for regeneration. This business
unit has a separate structure, set of skills and financial
resources required to create a dynamic, fast growing
business. Opportunities across all channels such as
supporting end-user take-back schemes, retail marketing
solutions and corporate recycling programmes are
driving a huge volume of product returns.

20 Annual Report 2012

YEARS

One of the main business drivers of the regeneration

activity in France is Love2recycle.fr. Launched initially in
2009, the site is now market leader in the country and has
a portfolio of 5 categories of products: mobiles phones,
laptops, tablets, game consoles and MP3 players.
The market dynamics illustrate the potential ANOVO
is accessing in France. This led last year to a major
marketing investment in a high profile TV advertising
campaign, which saw ANOVO establish itself as a
market leader in B2C device take-back activity.

FOCUS ON FRANCE
REGENERATION & RECYCLING
MARKET DYNAMICS

MOST POPULAR HANDSETS FOR 2012

1 iPhone 4
2 iPhone 4s
3 iPhone 3Gs
4 Samsung Galaxy S2
5 Samsung Galaxy S i9000

BRAND SPLIT FOR 2012

RIM Blackberry
10.3%

Samsung
22.6%

Nokia
7.5%

Apple
49.5%

Annual Report 2012 21

Our focus is firmly on improving the customer

experience when buying or receiving technical support
on new technology. This has resulted in high-street
visibility for ANOVO as the technical support centre
within the Carrefour Planet programme in Spain.
In Peru ANOVO also provides full front-office call centre,
walk-in-repair and outbound call services to all Movistar
customers through a nationwide network of shops
located in 30 cities and supported by 150 staff.

22 Annual Report 2012

FOCUS ON SPAIN & LATIN AMERICA

IN-STORE SERVICES
MARKET DYNAMICS

We continue to experience a rapid change of technology

and products launching with ever increasing functionality
and complexity. Smartphones and Tablets have changed
the way we use technology; devices now support
customers e-mail, and are their primary access to
internet, communication and every-day applications.
Competition between brands, operators and retailers
is fierce and each player in the market is looking to
differentiate itself in terms of service and marketing
support. Customers knowledge of products and
inter-connectivity has increased and the need to receive
expert technical advice and instant face-to-face or on-line
technical support is becoming increasingly important.

Our presence in the market and direct support to

Spains retail network provides us with a unique
opportunity to bring our technology services closer to
the customer at the point of sale. ANOVO has launched
a Carrefour Planet branded customer service point in
selected stores with ANOVO interfacing directly with
the consumers. The range of added-value services
addresses all customer needs in one visit, whether it
is technical advice, product selection support, sale of
service plans or insurance, technical support, diagnostic
and repair or device takeback programmes.

Annual Report 2012 23

ESTIMATED REPAIRS AND RETURNS

FOR NETWORK OPERATORS IN UK

258m
23m

60m
Operator 3

Operator 4

8m

Operator 5

67m
Operator 2

11m

Operator 7

5m

84m
Operator 1

Operator 8

ADDED TO THIS WE ESTIMATE REPAIRS

AND RETRURNS FOR OEMS IS A FURTHER

142m
The telecoms industry faces the same
supply chain challenges that all retailers and
manufacturers have, no fault found returns
/ repairs that could have been dealt with at
source. Independent research has indentified
that this can be as high as 63% and drives
the highest cost. ANOVO UK has developed
innovative and practical Returns & Repairs
Avoidance (RA) solutions, with the customers
need and end user experience at the very
heart of the design in order to deliver the
solution that avoids these types of returns.
This was seen as a natural extension of the
core repair capabilities already being delivered
across a wide range of customers and original
equipment manufacturers (OEMs).

24 Annual Report 2012

16m

Operator 4

11m
Operator 3

21m

Operator 5

13m
Operator 7

38m
Operator 2

44m
Operator 1

FOCUS ON UNITED KINGDOM

REPAIR AVOIDANCE
MARKET DYNAMICS

Large volumes of products are returned unnecessarily

Preventing avoidable returns is a main focus area in
managing Reverse Logistics

TOTAL SALES

Clear warranty conditions, harmonised &

standardised returns policies are basics
15-20%
Returns
63%
No Fault Found

OF THE 63%
NO FAULT FOUND
THE CUSTOMER CLAIMED THE
FOLLOWING ISSUES

Struggling with
Functionality

Doesnt meet expectations

Device mis-sold

Perceived
Software Fault
Handset Config
Set up
Perceived
Hardware Fault

Annual Report 2012 25

In 2003 the most popular handset was the Nokia

which cost

1100

94 and sold over 250 million units.

In 2012 Smartphone devices are increasing their market

share with values of up to

825!

3% of mobile phone owners had insurance in 2006.

25% of owners had insurance in 2012.

It is estimated that there are 12m

policies in the UK.

Policy and premium value is estimated at

730m and growing!

Overall claim costs are increasing 30% year on year!

26 Annual Report 2012

FOCUS ON UNITED KINGDOM

INSURANCE SUPPLY CHAIN SOLUTIONS
MARKET DYNAMICS

Through effective collaboration of its unique capabilities

in Telco product repair and refurbishment combined
with its regeneration activities, ANOVO is perfectly
placed to exploit the opportunities in insurance supply
chain services. With the increasing rate of customers
taking product insurance, (in UK alone its estimated
that 25% of owners had insurance in 2012), the need
for a fully compliant and quality managed insurance
fulfilment service is absolutely critical.
Insurance companies face new challenges with
replacement units increasingly difficult to source as
40% of claims are as a result of loss or stolen incidents.
The demand and model variant has increased the
complexity of supply chain management across
distributors, OEMs, brokers, defective repair and
refurbishment resulting in multiple partners and stock in
various stages of completion. As claim rates increase
and the replacement cost of the average handset
continues to climb, the ability to source product from

multi-channels and repair and refurbish to a high yield

has enabled ANOVO to offer market-leading insurance
fulfilment programmes to its customers.
By utilising all available channels, ANOVO has optimised
its supply lines:
ANOVOs own Love2recycle brand
Affiliate recycling programmes
Direct stock purchase from customers
Retail buy-back schemes
Global suppliers
By leveraging its capabilities to deliver high yield repair
and refurbishment and access to a wide disposal
market, ANOVO has optimised its fulfilment lines to
multiple customers. This has created a competitive
position in this important market.

Annual Report 2012 27

BELGIUM
1 Site
1600 Sq Mtrs
41 Staff
SWITZERLAND
1 Site
2100 Sq Mtrs
57 Staff
FRANCE
5 Sites
18000 Sq Mtrs
974 Staff
28 Annual Report 2012

ANOVO IN YOUR MARKET

FRANCE, BELGIUM & SWITZERLAND

FRANCE, BELGIUM & SWITZERLAND

Last year, in order to leverage better our operational
capabilities, we consolidated all activities across France,
Belgium and Switzerland under France regional
management.
The Belgian site was transformed into a hub providing
added value services for warehousing, kitting, prevalidation, configuration and RMA management of
tablets, laptops, smartphones, home entertainment,
modems and accessories. This increased volume
by 15% and we continued transferring repair and
refurbishment flow to our sites in Angers, Beauvais,
Brive and Wroclaw. In Switzerland we successfully
launched our regeneration business to both operators
and our own take-back scheme to the Swiss market.
Importantly for the site we started a dedicated logistics
hub for our cable operator customer where we receive
100% of all product technical swaps and returns
from the market managing all receipt, sorting, testing,
refurbishment and repair activities.
In France, the customer activities in Access, Telco and
Multimedia markets have been re-distributed across
Beauvais, Brive, Montauban and Angers in order to
balance capacity and leverage the skilled resources
across the sites. This year has seen increased
productivity and innovation for our triple play box repair

and refurbishment contracts and continued development

of high volume order preparation, kitting and
configuration services. Within Telco we have focused on
reverse hub screening and RMA management services
to our Operator customers while establishing an internal
process to efficiently take-back and process the huge
volume of devices returning from Love2recycle.fr.
Alongisde a well established B2B operation via
customer shops and operator marketing programmes,
we launched an intensive TV campaign in November
2012 to build brand awareness to a target market of
18-34 year olds. This multiplied by 4 times the number
of traded-in products. The consumer demand for
refurbished smartphones and tablets has seen 20% of
sales completed locally on platforms such as eBay.
The outlook for 2013 is continued growth of our core
set top box, modem and triple play business as new
players enter the market. We continue to evolve our
model with asset buy-back and disposal services, colocated repair models within reverse hub operations
and investment in advanced diagnostics. The course
for Regeneration is set as we anticipate further growth
in trade in volumes and open new opportunities for
sales in the insurance market and Eastern Europe and
Emerging Markets.

Annual Report 2012 29

UNITED KINGDOM
4 Sites
10200 Sq Mtrs
1137 Staff
30 Annual Report 2012

ANOVO IN YOUR MARKET

UNITED KINGDOM

UNITED KINGDOM
2012 was a strong year in the UK business across
all of its technology divisions and its 4 facilities. The
capabilities of the UK business remain well suited to
the needs of its clients, blending traditional repair with a
diverse range of supplementary supply chain services.
The business experienced rapid development as a
result of recognising the need to offer a broad portfolio
of services in the mature UK market.
Notably, the mobile division now offers a market leading
range of services supporting the entire end to end supply
chain including fully funded procurement and fulfilment
of devices, combined with remanufacture and repair,
right through to value creation at the end of the product
lifecycle. These solutions, which allow full transfer of
financial risk from the client, have been increasingly
adopted by the client base in the current economic
climate. Our knowledge of service chain costs and
customer service has also been key in delivering solutions
which avoid repairs and returns at source. We recognise
that, no matter how well a service transaction is managed,
it is always better for the end user, the manufacturer and
the client not to have a requirement for a service event at
all. Within the year, ANOVO has continued its deployment
of returns and repairs avoidance tools for several

customers offering on-line, assisted and call centre based

solutions which are bespoke to our client environments.
These solutions have successfully avoided over
1 million returns and repairs during 2012 for our
customers and emphasise the diversification of ANOVO
capabilities into new market areas.
Our infrastructure and networks division is positioned
close to London and offers both depot based and field
based proximity services to major infrastructure and
telecoms businesses in the UK. The facility provides
one of the broadest range of services within the Group,
supporting professional telecoms, home broadband,
pay-TV, infrastructure, and utilities providers with
bespoke services ranging from repair and refurbishment,
fulfilment and warehousing, screening and field services
and has grown strongly this year in all sectors.
Our focus is on continued diversification of our
capabilities whilst identifying further opportunities
to transfer our technical expertise, Information &
Knowledge Management Systems or Tools into our
customer operations or existing supply chains, where
there is potential to unlock significant cost savings and
improve customer service.

Annual Report 2012 31

SPAIN
3 Sites
12339 Sq Mtrs
890 Staff
32 Annual Report 2012

ANOVO IN YOUR MARKET

SPAIN

SPAIN
Within Spain ANOVO has a network of service centres
and logistics hubs supporting the whole Iberia region
including Spain, Portugal and the Islands. This network
is extending its reach into North Africa as our customers
require support for their products in new, fast growing
markets. Centred in Madrid with our reverse hub and
repair operations we link sites in the north, Barcelona,
and the south, Malaga, to provide optimum coverage
in Iberia whilst our hub operation in the Canary Islands
allows us to efficiently manage the customs complexity
of the remote areas and islands whilst bridging support
into North Africa.
Our market leading position in all segments Telco,
Home Access, Information Technology & Multimedia
and Hub Management has enabled the business
to grow and diversify during tough macro-economic
conditions in Spain. Despite falling retail sales and fierce
competition between operators leading to cost cutting
measures and consolidation, ANOVO has grown its
business to 3 well-balanced operations with 890 staff,
and is investing heavily in diversifying its activity. Within
its core repair business the product range supported
is impressive, covering mobile phone, smartphone,

tablets, routers, modems, set-top box products, AV and

TV products, PC, Notebook and Gaming boxes and
represents the strongest regional coverage in the Group
managing over 4.2M units per year.
Within the last year we have seen strong growth in
deployment of our new services in insurance supply
chain support and in-store services. Our relationships
with local operators and retailers are very strong and
we are recognised as their trusted service partner for
co-developing advanced services which create longterm value for them. ANOVO has invested in its ability to
source inventory, manage a complex claims management
system and deliver a guaranteed next day swap
replacement service to a rapidly growing Telco insurance
market. This has been one of the notable successes
of the year and significant potential exists for us in this
market by leveraging our global regeneration activity.
Consolidating our position in the local market, further
diversification of our new technology services and
providing centre of excellence support and solution
capabilities to our fast growing Latin America operations
are key objectives for 2013.

Annual Report 2012 33

COLOMBIA
Site operational
November 2012
PERU
1 Site
2149 Sq Mtrs
782 Staff
CHILE
2 Sites
3000 Sq Mtrs
400 Staff
34 Annual Report 2012

ANOVO IN YOUR MARKET

LATIN AMERICA

LATIN AMERICA
2012 saw revenue in Latin America reach 10% of Group
Revenue, and the forecast for this year is for continued
growth as we expand our operations in Colombia
and access the significant opportunities emerging in
local markets. The economic growth within this region
has fuelled consumer demand for latest technology
products and Pay TV subscription and ANOVO is
positioned strongly to benefit from this. Currently with
4 operations in Chile, Peru and Colombia, and almost
1200 people linked to a network of small ASC partners
acting as local hubs in a number of neighbouring
countries, we are extending our reach and services in
this region.
The operations have grown strongly as operators select
ANOVO as their principal returns hub to manage the
reverse logistics, repair and replenishment of their
swap stock to the market. From these operations,
under OEM warranty agreements, we directly repair the

products or repair manage the warranty repair through

an authorised network of partners. We support mobile
and smartphones, broadband access equipment, settop-box products and a growing capability on PC and
commodity parts repair for the Information Technology
market. Consumer demand is driving opportunities for
trade and surplus buy-back across our key customers.
Retailers require similar services and skills to manage
an ever increasing range and choice of consumer
electronics and equipment. This has seen ANOVO
enter into the retail market as an important provider of
warehousing and proven, efficient, returns management
services on all consumer electronic equipment and
goods. Distributors entering the market are also looking
for ready-made solutions and partners to support
fulfilment of products and after sales services and we
see further collaboration in this area.

Annual Report 2012 35

POLAND

1 Site
9600 Sq Mtrs
283 Staff
36 Annual Report 2012

ANOVO IN YOUR MARKET

POLAND

POLAND
ANOVO also has a strong presence in Eastern Europe.
Operating out of our Polish Centre of Excellence,
ANOVO offers a range of service capabilities to a
broad range of technology sector clients. The facility
provides rapid turnaround, same unit warranty repair
for notebooks, tablets, netbooks and PCs direct to
end-users and retailers both domestically in Poland and
cross-borders into Czech Republic, Austria, Hungary
and Slovakia.
In addition to complex customer logistics and
support, the site is also a highly industrialised repair
site for satellite and cable Pay TV Operators both in
the Polish market and as a central refurbishment hub
to other European Pay TV markets. We provide high
volume, quality and cost-effective refurbishment of set
top box swap stock. A similar high volume consumer
printer repair service supplies circa 50% of European
next day swap stock demand for a market leading
printer manufacturer.

The site possesses a strong engineering capability with

good access to a high-level of technical and logistics
skilled resources in this area. The mix of high engineering
quality and a competitive cost base provides ANOVO
with a very strong platform in central Europe from
which to extend its reach and support. The expansion
of the Class One Clean Room comes from the ability
not only to deliver high yield repair, but manage the full
global supply chain and RTV processes with OEMs and
component manufacturers in the Far East. This has
resulted in a core capability for low-cost service provision
in the field of LCD panel repair. ANOVO provides this
service to a wide range of OEM/ODM clients.
As well as being able to easily support most
geographies in central Europe, the ANOVO facility in
Wroclaw is strategically located close to the German
and Czech border and within easy driving distance of
client central hubs. As this location is well served by
local road and air infrastructure, ANOVO has the ability
to offer cost-effective, logistically robust and technically
strong service solutions to both the German and Czech
markets, as well as to the domestic Polish market.

Annual Report 2012 37

ANOV Expansion consolidated F/S Sep30, 2012

ANOVO consolidated P/L (1)
m
Revenue
Purchases and other external charges

Sept 12
12 months
255.4
(179.1)

Staff costs

(66.3)

Other costs

(3.7)

Depreciation

(1.1)

Total costs & expenses

(250.1)

EBIT

5.3

Financial result

(1.2)

Non recurring result

(2.8)

Income Tax

(0.6)

Badwill depreciation

0.7

Net result attribute to shareowners

1.4

Non controlling interests

(0.1)

Net result group

1.3

(1) Restated from audited consolidated P&L for the period 1st November 2011
to 30th September 2012.

38 Annual Report 2012

FINANCIAL STATEMENTS

ANOVO Expansion consolidated F/S Sep30, 2012

Latin America
10%
Spain
20%
United Kingdom
29%

Figures based on 11 months activity for ANOV France

from 1st November 2011 to September 30th 2012 and
12 months activity for all other subsidiaries.
Revenue is split regionally as 34% France, 29% UK,
20% Spain, 10% Latin America and 7% Belgium,
Switzerland and Poland.
Financial costs reflect essentially factoring and
leasing costs.

Belgium, Switzerland & Poland

7%

France
34%

Non-recurring expenses are mainly one-off redundancy

costs related to re-structuring of France and UK.
Strong equity and quasi equity at 21.9 million showing
strong support from shareholder.
Debt and borrowing consist of factoring and marginally
short-term facilities.
The badwill of 2.9 million is resulting from the
take-over of the former ANOVO SA activities and has
been depreciated over 4 years.

Annual Report 2012 39

ANOV Expansion consolidated F/S Sep30, 2012

ANOVO consolidated B/S
m
Intangible assets

Sept 12
0.5

Tangible assets

19.3

Financial assets

2.8

Fixed assets

22.6

Inventory

18.7

Receivables

52.3

Suppliers

(34.8)

Fiscal & social debt

(16.4)

Other

(0.9)

WC

18.9

TOTAL USES

41.5

Shareowners equity

11.9

Shareowners current account

7.5

Non controlling interests

0.3

Badwill

2.2

Equity and quasi equity

21.9

Liabilities for risks

11.5

Debts & Borrowings

16.6

Cash

8.5

Net debt

8.1

TOTAL SOURCES

40 Annual Report 2012

41.5

FINANCIAL STATEMENTS

SALES BY ACTIVITY
Regeneration
16%

New Services
13%
Repair & Refurbishment
71%

OUTLOOK FOR 2013

ANOVO is continuing its strong progress and evolution
through the current financial year. After the first quarter
the performance for the full year 2013 continues in the
same vein. Both year-to-date revenue and EBIT are
exceeding budget and the outlook for full year is positive
with significant new business momentum created.

Samsung, TalkTalk, Huawei and we expect to announce

further trading and customer updates soon.
The focus is firmly on completing the transformation and
the Board is committed to further expansion in Latin
America, exploring new technology markets, and the
deployment of its technology based services.

During 2013, we have communicated significant

customer contract wins or renewals with Nokia,

We thank our customers for their continued trust

in ANOVO.

Annual Report 2012 41

2012 Annual Report, Financial Results & Outlook

Transforming Technology Solutions
Head ofce

22 Quai Gallieni

Suresnes

92150

FRANCE

Tel: +33 (0) 1 71 04 30 00