GLOBAL BLUE
Introducing our business
Global Blue history
Serving merchants for 35 years to improve Globe Shoppers’ experience
TAX FREE
SHOPPING
GLOBAL
EXPANSION
ACCELERATES
1980
1997
1st TFS
country
Globally
1st TFS
country
in Asia
1 country
1998
CURRENCY
CHOICE
1999
1st TFS
country in
Americas
2001
SHOP
2002
1st CC
country in
Asia
2008
MULTI
PRODUCT
FOCUS
2009
Launch of
E-TFS in
Finland
2010
SHOP
TAX FREE
2011
Launch of
E-TFS in
Singapore
2013
2016
Currency
Select
acquisition
51 countries
2
Global Blue solutions
PRODUCTS
SERVICES
TAX FREE SHOPPING
DYNAMIC CURRENCY
CONVERSION
SHOP
The world’s #1 Tax Free
Shopping network
A market leading Dynamic
Currency Conversion service
A multi-media marketing platform,
connecting merchants with travellers
86% net revenue
10% net revenue
4% net revenue
INTELLIGENCE
PUBLIC AFFAIRS
ACADEMY
Data and insights to understand
the trends affecting merchants’
businesses over time
Dedicated team and expertise
to advise Authorities on all TFS
related matters
Training and development for
staff who work in-store
3
Global Blue geographical presence
A Global footprint to consistently serve our clients
Americas
Asia Pacific
Argentina
Bahamas
Uruguay
1% net revenue
Europe, Middle East and Africa
Austria
Belgium
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Italy
Latvia
Lebanon
Lichtenstein
Lithuania
Luxemburg
Morocco
Netherlands
Norway
Poland
Portugal
Slovakia
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom
UAE
83% net revenue
Australia
Brunei
China
Cook Islands
Fiji
India
Indonesia
Japan
Korea
Malaysia
New Zealand
Papua New Guinea
Singapore
Taiwan
Western Samoa
16% net revenue
4
Global Blue historical transactions (millions)
45.0
40.0
35.0
11.6
30.0
+13% CAGR
25.0
9.2
9.9
8.2
7.3
20.0
5.7
15.0
3.0
3.4
4.0
2.2
11.4
12.0
12.1
12.5
16.3
20.0
23.9
26.4
27.1
30.2
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
10.0
5.0
0.0
End of March of every period
• TFS
• DCC
5
Global Blue key figures
1,800
21 billion
Euro (€) sales in store
employees
9 million
SHOP magazines
30 million
12 million
15 million
Tax Free Shopping transactions
Dynamic Currency Conversion
transactions
SHOP website visits
300,000
75,000
stores trust us with
TFS solutions
stores trust us with Dynamic
Currency Conversion solutions
Data date range: Apr 2015 – Mar 2016
6
Illustrative trusted Tax Free Shopping customers
7
Illustrative trusted Dynamic Currency Conversion partners
8
Global Blue values
Innovation
Collaboration
Customer centricity
Empowerment
Respect
9
TAX FREE SHOPPING
Introducing our business
Tax Free Shopping
Helping our partners boosts sales
Governments waive VAT/GST for goods bought by international visitors,
to encourage foreign tourists shopping expenditure
Tax Free Shopping (TFS) enables these Globe Shoppers to reclaim
VAT/GST on the purchases they take with them at the end of their trip.
Global Blue manages each tax refund for the merchant, so they can
benefit from these Globe Shoppers and focus on selling.
In 2016* Global has powered 30 million Tax Free Shopping transactions.
*Period Apr’15 - Mar’16
11
Tax Free Shopping business model
Global Blue facilitates the VAT refund process between merchants and Globe Shopper
4
Global Blue refunds
Globe Shopper: (VAT –
Gross Commission)
Global Blue
Globe Shopper buys goods (incl. VAT)
5
Global Blue invoices 100%
of VAT to Merchant
6
Global Blue pays Merchant
Commission to Merchant
1
Global Shopper
Merchant
2
3
Globe Shopper
validates the Tax
Free Transaction at
the customs
Merchant issues Tax Free Transaction
7
Merchant declares and
settles VAT
Customs | VAT Agency
12
Tax Free Shopping unique selling proposition
We maximise financial return for Global Blue partners thanks to:
In store and online training tools, decision-making tools and customised advisory service
We make the Tax Free Shopping process quick & effortless for every merchants thanks to:
A range of innovative and adaptable issuing solutions with advanced functionalities
We provide shoppers with the best experience thanks to our:
The largest network of refund points, a very large number of refund options, world class customer service
and new generation digital communication tools
We ensure compliance and simplify the administration of the TFS process for all Global Blue
partners through our:
Flexible Tax Free Shopping models, fraud and audit trail tools & processes, PCI compliance system and 35
years of industry experience with close relationship with authorities in all local markets
13
1. We maximise financial return for our partners
200+ Sell out people in the world serving merchants to boost their performance
Issue Ratio (IR)
Number of issued Forms vs the
number of eligible transactions
occurring in store.
Refund Ratio (RR)
Number of Forms refunded vs
the number of Forms issued.
100%
45%
58%
Eligible for
TFS
non issued
missed
opportunity
55%
24%
TFS Forms
Issued
non
refunded
76%
42%
Refunded
converted
opportunity
Tools and ad-hoc advice
to improve issue ratio and
refund ratio
Training of merchant
teams “in-store” and
“online” to boost
performance
14
1. We maximise financial return for our partners
We provide accurate and regular information and benchmark to better pilot the business
Global Blue
Monthly Sales Insight Reports:
Give merchants full visibility of their
performance (number of transactions, sales
in store, average spend per nationality and
type of goods), benchmarked with the
market (per store, city, country…) city
Global Blue Online
Customised Reports:
Global Blue
Advisory Bespoke Reports:
(online strategic advisors) Allow merchants
to have live access to their data to take
quick decisions
On demand reports to allow merchants to
assess a potential return on investment,
e.g. how to drive sales in a new store in a
given city
15
2. We make the Tax Free Shopping process
quick & effortless
We provide a range of innovative and adaptable solutions
Terminals
Web / PC based systems
POS Integration
All in one Kiosks
Key benefits:
• Integration of payment
& DCC functions
• Intelligent eligibility
detection
• Flexible connection:
WI- FI, 3G, Bluetooth
and Ethernet
Key benefits:
• Click and set up
• Intuitive user interface
• Instant issuing
• Refund tracker
• Use of existing hardware
Key benefits:
• Full integration with
POS for automatic
capture of transaction
details
• Customised flow
Key benefits:
• Receipt scanned for
automatic Form issuing
• Language selector
• Passport scanner
For merchants who want
a plug and play service
For merchants with a limited
number of Tax Free Shopping
transactions who require a
simple technological set up
For high end merchants
who want the fastest
issuing solution
For merchants with a
large number of Tax Free
Shopping transactions
who want immediate
traveller self-service
Autofill with
Global Blue Card
Passport and
Credit card reader
16
3. We provide shoppers with
the best experience
We provide the largest choice of refund locations
In-store
Downtown
Airport
Back home
Fast Refund service allows refund on
credit card 2 days after purchase,
initiated in store
252 downtown refund points
347 Refund Points of which 68
owned at the airport
63 refund points at home if the Globe
Shoppers have forgotten
VAT Off Service allows shopper to
pay purchases without VAT, in store
for Globe Shoppers who don’t want to
queue at the airport and want
immediate credit to buy more
For Globe Shoppers who want
immediate credit to buy more
371 professionals to ensure a large
choice of exit point. For Globe
Shoppers who want the best service
provided by well trained professionals
For Globe Shoppers who don’t want to
queue at the airport and want cash at
home
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3. We provide shoppers with
the best experience
We provide a very large number of refund options
Cash at Refund Point
Credit Card
Visa, Mastercard, Unionpay, American Express, Diners Club and JCB
Online Payment Solution
Alipay (for global shoppers from China)
Bank Transfer / Cheque
18
3. We provide shoppers with
the best experience
World Class
Customer Service
New Generation Digital
Communication Tools
Media to contact us :
Mobile app and Web with:
•
Online live chat via
www.globalblue.com
•
Call center via TOLL-FREE
HELPLINES for all 39 operating
Tax Free Shopping countries
Refund
Calculator
Store
Locator
Refund
Tracker
Level of service:
18h / 5d in 6 languages:
English, German, French, Chinese,
Russian and Japanese
Autofill with TFS process
barcode
information
19
4. We ensure compliance and simplify
the administration
We provide flexible Tax Free Shopping
models based on merchant needs
•
•
•
Standard Sale when merchants want to
manage the export process but outsource the
administrative process
Double Sale when merchants want to
outsource the export and administrative process
VAT Off when merchants want the Globe
Shopper to be 100% reimbursed of the VAT
We provide fraud & audit trail tools
and processes
•
•
•
Fraudulent forms detection apply to all
transactions
Traceability Guarantee
for all transactions
PCI Compliance System
We work proactively with customs
and other authorities involved in
the Tax Free Shopping
process to inform you about any
change of regulation
A dedicated public affairs team in all major
countries of the world to defend your interests
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DYNAMIC CURRENCY CONVERSION
Introducing our business
Currency Choice
and Currency Select
Smart currency payment solutions
Our 2 brands of dynamic currency conversion (Currency Choice and
Currency Select) that enable travellers to pay in their home currency, abroad.
Global Blue solutions allow retailers in more than 75,000 stores around the
world to offer foreign customers a simple and cost efficient way to pay in their
domestic currency.
In 2016 Global will power 25 million Dynamic Currency Choice transactions.
22
Dynamic Currency Conversion business model
DCC transfers FX profit from the issuing bank to Global Blue, which shares it with
the merchant acquirer and merchant
6
Acquiring bank debits Card Scheme in
the Traveller’s home currency
Acquiring Bank
7
•
•
Acquiring Bank pays Global Blue in
Traveller home currency
Global Blue pays acquiring bank
local currency amount
Card Scheme debits Issuing
Bank in home currency
Card Scheme
8
Acquiring bank credits
merchant in local currency
Global Blue
2
5
Merchant requests exchange rate to
pay in home currency to Global Blue
1
4
Issuing bank debits
Traveller in Home currency
Merchant prints the bill to the Traveller
Merchant
3
Issuing Bank
Traveller
Merchant proposes to the Traveller to pay in home currency
or local currency. The Traveller choses home currency
23
Currency Choice unique selling proposition
We insure a vertical development to DCC with our partners thanks to:
A range of DCC services offered on POS (stand-alone or integrated), ATM and e-commerce, and wide range
of currencies (over 50)
We maximise financial return for Global Blue partners thanks to:
In merchant and online training tools and decision making tools
We provide shoppers with the best experience thanks to our:
Best Rate Guarantee offered to all card holder using Global Blue DCC offer and world class customer service
We ensure compliance with VISA and MASTERCARD rules and support our partners in the
certification process through our
15 years of payment industry experience and close relationship with acquirers in all local markets
24
1. We ensure a vertical development of
DCC with our partners
DCC services offered through various channels
POS
ATM
E-COMMERCE
Standalone or
fully integrated
Adapted DCC
Service flow
E-dynamic conversion
currency et e-multi currency
A large range of
currencies offered
Treasury solutions
to eliminate the
currency risk
(over 50) to maximise the
potential of conversion
offered to merchants
and acquirers
25
2. We maximise financial return
for Global Blue partners
Hit rate management tools
per merchant
Performance review tools
per acquirer
In merchant
staff training
Reporting tools tracking conversion rate
performance and set of actions to take
Reporting tools tracking conversion rate
performance and set of actions to take
How to interact with travellers to maximise
the usage of DCC
26
3. We provide shoppers with
the best experience
We guarantee the best exchange
rate at the time of purchase.
If a customer receives a statement from their bank
which proves they would have given them a better
rate on the same day with the same card, we
promise to refund them the difference.
27
4. We ensure compliance with
VISA and Mastercard
VISA and Mastercard DCC Certification
Fully compliant with VISA and Mastercard rules: All our implementations
have received the VISA and MASTERCARD certification at the first attempt
through the process and close support to our partners that we put in place
Certificat PCI DSS
PCI DSS Compliance: Security report audit date 15 September 2015
Close follow up of our partners
• 15 years of payment industry experience: implementation of a close
working methods with our partners to insure Compliant in-store, online or
at ATMs
• We have a dedicated CC champion team across Europe, Asia and
Africa to provide a close business support to our acquirers.
28
SHOP
Global Marketing Services
SHOP
Speak directly to Globe Shoppers
Global Blue has developed SHOP, a portfolio of print and digital
shopping guides allowing direct contact and influence with Globe
Shoppers around the world.
From their origin countries at the planning stage of the trip, all the way
through to their chosen shopping destination, SHOP’s multi-platform
approach offers a full suite of Globe Shopper communication services.
30
1. We generate traffic
to our clients’ stores
Digital advertising
Media space & store locators on website & app
Print material
City maps and magazines distributed in airports, hotels, tourism offices
Partnerships
Chinese recognized labels, credit card organizations,…
14.8 million
3.5 million
4.4 million
web visits in year
2015-16
46% visits from China
30% visits from Russia
SHOP magazines
distributed
SHOP maps
distributed
6 origin countries
covered
31
2. We promote our clients’
brands overseas
75% of purchasing decisions are made
before travel
We connect our clients’ brands to shoppers still in their home country.
Brands become part of their shopping list even before they travel.
•
•
•
Material distributed in 6 origin countries
Advertising in TO agencies, visa application centre, in flight
Organized meetings between retailers & tours
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THANK YOU!