WHAT’S INSIDE

NEWSLETTER OF THE JEBSEN GROUP 2017 NO.3 VOLUME 9

捷成集团 jebsen1895 Jebsen Group

UNL CKING GREATER VALUE

VIEW FROM THE TOP

IN THE SPOTLIGHTP.3

COMMUNITY MATTERSP.8

CONNECTING MINDSP.9

BROADER HORIZONS

INDUSTRY INSIGHTSP.6

P.2

P.11

2VIEWFROM THE

TOP

In 2017, China’s consumption growth shifted to a higher gear, with Chinese consumers buying more quality goods and services. If our business is seen as an indicator of the overall health of the premium end of the consumer market, then we can confirm that the Chinese consumer continues to have faith in brands which deliver on their promise of providing great experiences. We have grown faster than we had anticipated when we set our budgets in the third quarter of last year, and it certainly feels like this trend will continue for some time.

What is perhaps more significant than the scale of China’s consumer market is its growing sophistication. As the Chinese consumer becomes more affluent and more connected, their buying behaviour is changing. It’s now quality over quantity, and value over volume.

Increasingly, Chinese consumers are looking for products and services that support their increasing health consciousness and chosen or aspirational lifestyles. This is a great opportunity for Jebsen as it allows us to be an early mover in a megatrend which will be with us for many years to come.

J SELECT, our multi-brand lifestyle store by Jebsen Consumer, is catering to the discerning consumer with great success. Online, the J SELECT Tmall store has been ranked by Tmall among the top 30 stores in the consumer electronics category, while offline we have opened our fifth and latest physical store in Hong Kong’s Yoho Mall, enjoying double-digit customer retention rates among a group of multi-channel buyers who are interested in premium products. Underlying this success is our ability to source products that appeal to our customers.

In the Beverage segment, Jebsen Fine Wines, which had earlier made the strategic move to incorporate sake into its wine and spirits portfolio, has scored big by becoming the first overseas partner of renowned sake brand Juyondai. This places Jebsen Fine Wines in high regard among the growing population of sake connoisseurs in the region. Meanwhile, Blue Girl Beer continues to feed China’s appetite for music by a series of marketing campaigns, including sponsoring the Guangzhou leg of singer Show Luo’s ‘Crazy World Tour 2017’ concert, and consumer events collaborating with popular singers from the most-watched TV show ‘The Rap of China’. Over at Jebsen Motors, the team is leveraging technology in many new and innovative ways to make motor sports more accessible to Chinese consumers. Through its live stream of its own Team Jebsen at the Porsche Carrera Cup Asia races in Japan and Thailand, Jebsen Motors has elevated the customer experience while encouraging an interest in car racing among a wider audience.

China’s consumption upgrade also holds much promise for Jebsen Industrial. The business unit’s focus is on Green, Clean and Wellbeing – all aspirations that are finding a lot of support in the industrial space in China. Opportunities range from improving industrial processes, thereby reducing the environmental footprint of products (something the

consumer is becoming increasingly interested in), all the way to ideas such as providing software solutions to the health industry which is grappling with ever-increasing demands from a wealthier and older population.

The Hong Kong consumer market is of course at a different level of maturity. Nevertheless, we still see opportunities for our businesses to grow as the overall

retail environment slowly recovers from a few years of declining sales. Innovation can entice consumers with fresh ideas, even in a saturated market.

We are equally committed to supporting our people’s pursuit of quality of life. We do so by enabling a fulfilling career, facilitating healthy work-life balance and providing abundant opportunities for them to grow as professionals and individuals. By dovetailing our corporate social responsibility efforts with our emphasis on staff well-being, we strive to create win-win situations where our people have a hand in shaping a sustainable tomorrow for themselves and their loved ones. In a world where less is more, Jebsen Group is delighted to help people make better choices.

Helmuth Hennig Group Managing Director

Value over volume “We have grown faster than we had anticipated when we set our budgets in the third quarter of last year.”

3

IN THESPOTLIGHT

Consumer – J SELECT

Winning online and offline

NOMOS Glashütte, the German watchmaker represented by Jebsen Consumer, is making waves with a new product line and a new channel presence! The new NOMOS Aqua is designed for active lifestyles, featuring the clean, streamlined design that the brand is known for and added functionalities like 200m water resistance. With two models, four colours and male and female versions, the NOMOS Aqua series is now available from the brand’s new Tmall store (nomos.tmall.com) and J SELECT.

With contributions from Wayne Yang

Consumer – Watch

Growing products and presence

Visit the latest J SELECT store at Yoho Mall in Hong Kong or shop online at jselect.hkor jebsen.tmall.com.

J SELECT’s online-to-offline and offline-to-online (O2O) strategy is hitting its stride with notable achievements in both Hong Kong and Mainland China. The brand opened its fifth physical store in Hong Kong’s Yoho Mall in July 2017 while the J SELECT Tmall Store has been ranked by Tmall among the top 30 stores in the consumer electronics category. With its curated collection of premium lifestyle goods and its creative marketing strategies, J SELECT has gained a loyal following of multi-channel buyers in the past few years.

With contributions from Chloe Chu

In a major milestone since introducing sake to its portfolio, Jebsen Fine Wines has become the first overseas partner of Juyondai, a highly sought after sake brand by Takagi Shuzo brewery. Juyondai is also known for its N Sake, a premium sake produced by former footballer and certified Sake Sommelier Hidetoshi Nakata that is only available outside Japan. Jebsen Fine Wines introduced the Juyondai Black Label and N Sake 2016 to Hong Kong in a series of invitation-only events in July 2017.

With contributions from Catherine Yuen

Beverage – Fine Wines

Succeeding with sake

Juyondai Black Label sake is now available exclusively via Jebsen Fine Wines.

Check out the new Aqua series watches at nomos.tmall.com!

YA-MAN, the Japanese brand represented by Jebsen Consumer and best known for its advanced electronic beauty equipment, has been lauded for its products by online marketplace Rakuten and beauty shopping site @cosme! Both popular e-commerce platforms have given YA-MAN products the thumbs-up with a series of No. 1 awards. With contributions from Samantha Cheung

Consumer – Health & Beauty

YA-MAN ranks #1 in Japan! Rakuten’s Top Pick• YA-MAN Circle Peeling Pro for skin resurfacing

@cosme’s Top Choices• YA-MAN Circle Peeling Pro for skin resurfacing • YA-MAN Rei Beaute R Flash for hair removal • YA-MAN Cavi Spa RF Core for slimming

Beverage – Fine Wines

A new look for FIJI Water A mainstay in Jebsen Fine Wines’ premium water portfolio, FIJI Water has unveiled a fresh new look! Inside the new, sleek bottle is the same artisan water that sophisticated consumers have enjoyed for years. FIJI Water remains bottled at the source in the islands of Fiji, in a unique process

FIJI water now sports a refreshing new look!

untouched by man. Jebsen Fine Wines is proud to represent the brand in Mainland China since 2009 and Taiwan since 2016. With contributions from Marck Hsiao

4

In July 2017, 24 sales representatives from six Jebsen Motors-operated Porsche Centres across Mainland China gathered to pit their skills at the 2017 Jebsen Motors Elite Sales Skill Contest. Held at Porsche Centre Shenzhen Longgang, the competition was a comprehensive test of their abilities as a qualified sales consultant. From product and brand knowledge, to managing customer needs, handling the new car delivery process and presentation skills, the participants not only showcased their own skills, but also learnt from their peers – a valuable practical training session and bonding experience!

With contributions from Joyce Gui and Effie Tian

The Bosch Jebsen Car Service Centre in Shanghai is one year old! As the centre leverages Bosch’s advanced technology and Jebsen Motors’ deep expertise in serving the luxury car market, its first anniversary celebration was themed ‘Unity’. A two-day family event was organised for customers and employees in June 2017, providing plenty of wholesome fun for over 100 families and 300 participants!

With contributions from Philip Lange and Coco Yang

Motors

First Anniversary Fun

Jebsen Motors uses innovative ways to make motor sports culture more accessible to customers in Mainland China.

For the first time, Team Jebsen, in collaboration with Auto KOL Sportscar World, used digital technology to broadcast the Porsche Carrera Cup Asia to fans around the world! Selected customers were invited to watch the live stream at five Jebsen Motors-operated Porsche Centres in Mainland China. The new motorsport-inspired design in the centres created the perfect atmosphere for the racing action, streamed live from Japan’s Fuji International Speedway in June 2017 and Thailand’s Bangsaen Street Circuit in July 2017. The live broadcast was also available via Team Jebsen’s official Weibo account and WeChat Subscription account, as well as Team Jebsen drivers Cui Yue's and Yuey Tan's personal Weibo accounts, generating over 1,335,000 views in total!

With contributions from Vicky Wang and Alice Mi

Motors

Racing Action, Streamed Live!

Motors

Best of the Best

Fans had a crazy good time with Blue Girl Beer and Show Luo.

Delighting customers with fun challenges and interactive ‘Junior Heroes’ activity.

Congratulations! 1st: Maggie Ma, Porsche Centre Shenzhen Longgang 2nd: Cici Xu, Porsche Centre Shanghai Minghang 3rd: Dylan Ye, Porsche Centre Shanghai Puxi Rising Star: Will Gong, Porsche Centre Shanghai Puxi Team Award: Porsche Centre Shanghai Puxi

Beverage – Beer

What a show! Mandopop star Show Luo is back after three years and Blue Girl Beer was proud to sponsor the singer’s Crazy World Tour 2017 – Guangzhou concert on July 29! With dazzling visual effects and mesmerising performances, it was an experience best savoured with the refreshing Blue Girl Beer.

The brand also kept Hong Kong cool this summer with its “What Time is It, Miss Blue Girl?” promotional campaign, complete with fantastic prizes to keep consumers smiling.

With contributions from Tiffany Xiao

5

JCineCast engaged industry audiences at BIRTV 2017.

Industrial – Cinematic & Broadcasting Solutions

Innovation. Imagination. Creativity. JCineCast, the industry brand of Jebsen Industrial, has reprised its participation at BIRTV for the 19th year and this time, it brought the Asian debut of the latest lenses and technologies to the annual industry tradeshow. Visitors had the opportunity to test-drive the Cooke S7/i Full Frame Plus Primes T2.0, the Cooke Panchro /i Classic lenses, the Zeiss Compact Prime CP.3 lenses and the Angenieux Optimo Style 48-130 just months after they were unveiled at the globally renowned NAB Show in Las Vegas, USA. JCineCast’s full product line-up for BIRTV 2017 also featured solutions from over 10 industry-leading manufacturers including the wildly popular Angenieux Type EZ Series, which JCineCast co-launched with Angenieux earlier this year. All the products were available for hands-on filming at the two mini film sites that JCineCast built at its booth.

With contributions from Mike Long

Jebsen Building Products is pleased to have helped the Shanghai R&D Centre of the world’s largest biotech company maintain the highest anti-bacterial and hygiene standards. To address the customer’s need for a wall bacteria prevention and control solution for the auxiliary function area of the R&D Centre, Jebsen Building Products recommended Deflecta’s Antimicrobial and Multi-Sealer. The HACCP-certified, 100% biodegradable product has been proven suitable for use in pharmaceutical and food production facilities. It treats mould effectively, destroying 99.99% of bacteria, while extending service life, enhancing durability and reducing maintenance cost. The result is yet another highly satisfied customer!

With contributions from Mike Long

Industrial – Building Products

Impressing Shanghai Roche Pharmaceuticals

Globally renowned engine manufacturer John Deere has marked the 20th year of its partnership with Jebsen Industrial with an award. This was the principal’s way of acknowledging Jebsen Industrial’s excellent service and outstanding achievements in promoting its products in Greater China. John Deere is a 180-year-old brand that is well respected for its advanced power diesel engine systems, which are widely used in agricultural, commercial and consumer applications.

With contributions from Mike Long

Industrial – Automation & Services

Two partners, 20 years of success

John Deere’s high-powered engines are also built for environmental sustainability.

Jebsen Building Products delivered an anti-bacterial environment for Roche’s R&D centre.

I N D U S T R YINSIGHTS

46

Redefining consumer value Jebsen Group Director Denis Li discusses how Jebsen Consumer is reshaping the consumer journey and supporting China’s consumption upgrade trend.

Jebsen Group, which operates in both markets, achieved a 2016 turnover of HK$13.3 billion (approx. RMB 11.8 billion), with a 5% increase in net profit after tax. Group Director Denis Li explains, “In our 120 years of serving Greater China, we have been through many market ups and downs. We have managed to break out of the low economic cycle, and record growth, with an agile market strategy. It’s about learning to adapt to the times, to stay attuned to our customers’ needs and challenges, and serve them the way they want to be served.”

In the case of Jebsen Consumer, Mr Li says, an omni-channel strategy has proven to be the winning formula.

Preparing for the long term For a long time, marketers likened the consumer’s buying decision to a funnel — a top-down, unilateral process that starts with several brand options and gradually filters down to one brand. However, technology has completely disrupted this process. Now that consumers have easy access to much more information, the buying decision has become more of a journey. And brands, which also have more ways to generate and distribute marketing content, now have the power to influence that journey in their favour.

“It was a natural evolution for Jebsen Consumer to shift from being a distributor to a brand-builder,” said Mr Li. “As a niche market player with a long-term view of the market, the price war has never been our battle. To us, price competitiveness is not a sustainable strategy. Instead, we invest in building and managing brands, telling their stories and demonstrating their value to our consumers. We also

Economies are inherently cyclical. Dips and peaks are perhaps most pronounced in the retail sector, which tends to be more sensitive to economic changes. In 2016, Hong Kong’s retail spending plunged to a 17-year low, in part due to a drop in inbound tourism. But further north, in Mainland China, retail sales grew 9.6%.

Showcase how Jebsen Consumer serves many facets of a consumer’s life.

Offline Shopping• Experiential shopping • 5 physical stores

across Hong Kong Online Shopping• 24/7 convenience • jselect.hk & jebsen.tmall.com

7

ensure good distribution logistics and thoughtful after-sales service to increase our brand competitiveness.”

While this has worked well for Jebsen Consumer, the business unit continued to keep a watchful eye on emerging trends. Two big ones soon caught their eye — lifestyle consumption and e-commerce.

Quality over quantity Even before the term ‘consumption upgrade’ was coined, Jebsen Consumer has been serving this shift in consumer behaviour. As China’s middle-class began to come of age, the business unit predicted that more consumers would seek products that serve more than a functional purpose; products that would enrich and uplift their lifestyles.

Mr Li points to Dyson as a case in point. Back in 2012, after Jebsen Consumer successfully established the brand in Hong Kong, it decided to introduce it to Mainland China. “No one expected a fan to retail for a few thousands RMB before” said Mr Li candidly. But Dyson took off in a big way. Over the last few years, Jebsen partnered with Dyson to successfully build its brand presence in the region. In 2016, Dyson has doubled its business in Greater China and has topped market share amongst the same category products in Hong Kong, as well as for department store channel in Mainland China. Jebsen’s retail capability also expanded with three new Dyson Concept Stores in Beijing, Hangzhou and Guangzhou.

“For an increasing number of Chinese consumers, their homes are more than just a form of shelter or an investment. For the busy urbanite, homes are a much-needed sanctuary, and that is why they are becoming more particular about their home furnishing and appliance choices. Products need to appeal to consumers in new ways — form, function, safety and even energy efficiency and environmental footprint are key considerations today,” explained Mr Li.

For this reason, Mr Li is confident that home enrichment products with superior quality have positive potentials in the market. KitchenAid, a 100-year-old premium American home appliance brand that Jebsen Consumer represents, achieved impressive results in Hong Kong last year and will have a lot of room to grow going forward.

Transcending geographical boundaries E-commerce was the other major trend that Jebsen Consumer did not ignore despite its extensive physical distribution channel network across Mainland China and Hong Kong. The business unit embraced the direct-to-consumer model with its 2013 establishment of J SELECT, a multi-brand lifestyle retailer. What is perhaps more telling is Jebsen Consumer’s decision to launch J SELECT as an online, e-commerce platform.

“Online shopping offers an unprecedented level of convenience to consumers. They can shop anywhere, anytime. In a hyper connected world, consumers were already going online to discover new products and read reviews, so allowing them to buy online was a natural progression for us,” said Mr Li, who added that while jselect.hk was first to come online, the business unit quickly added jebsen.tmall.com for Mainland China.

By combining a diverse portfolio of premium quality products with a user friendly customer platform, J SELECT provides a wide range of products from all over the world, ranging from cameras, electronics and home appliances to beauty and health products. Jebsen also adopted novel measures to help its business partners expanding their businesses in Greater China.

“Furthermore, the Mainland Chinese market is geographically large and diverse, and rising affluence is no longer limited to tier 1 and 2 cities. We predicted demand from smaller regions, all the way to tier 4 and tier 5 cities as well, so e-commerce is a much more efficient way for us to reach out and serve these consumers.”

This soon progressed to the omni-channel strategy that Jebsen Consumer uses today. J SELECT, the lifestyle retail brand and online platform addressing the retail industry revolution driven by consumer centricity and digital technology, has strengthened its presence in the region by opening five physical stores in Hong Kong so far to complement its online stores in both Hong Kong and Mainland China. This creates a consistent O2O experience for its customers.

“While online shopping offers convenience, offline shopping is more experiential. Consumers can touch, feel and try out the products before they make a purchase decision. We regard the online and offline spaces as complementary, rather than competitive, which is why we chose omni-channel,” revealed Mr Li.

The five J SELECT stores in Hong Kong are all located in high traffic shopping malls in Sha Tin, Tseung Kwan O, Kowloon Tong, Admiralty and Yuen Long. Jebsen Consumer is also considering plans to extend J Select’s offline presence to Mainland China.

Delivering value As the quality-over-quantity trend that Mr Li discussed earlier has gained traction within Mainland China and become more mainstream, it has been labelled as a ‘consumption upgrade’. For Jebsen Consumer, this certainly bodes well, as the niche market segment that it has traditionally served is growing by leaps and bounds.

To this, Mr Li said, “As a Group, we have always strived to bring high-quality lifestyle choices to people. Our market strategy must change with the times but our underlying commitment to delivering value remains unwavering.”

J SELECT now has five physical stores in Hong Kong as well as dedicated e-commerce platforms for Hong Kong and Mainland Chinese shoppers.

With the J SELECT brand, Jebsen Consumer is well positioned to serve China's consumption upgrade trend by offering shoppers a wider choice of premium lifestyle products.

8

COMMUNITYMATTERS

Corporate Social Responsibility

A year of activities and achievements

Waste not, want not! Jebsen Group employees joined the upcycling trend of breathing new life into discarded items during a series of staff workshops held at key Jebsen locations across the region between June and July this year. They turned coffee dregs, which are a natural deodorant, cleansing agent and weight loss enabler, into handmade soap! Doing so is a great way to reduce waste, save money and be assured that the products they use are free of harsh chemicals.

With contributions from Sasa Chen

At Jebsen, everyone has a ‘hero gadget’; a skill, an expertise, or a personality trait that helps them succeed. In June 2017, 27 volunteers from Jebsen Motors and Jebsen Beverage (Beer) were given the chance to put their hero gadgets to good use — by sharing them with local students! This was the first time the Group partnered with Project WeCan, a Business-in-Community initiative for secondary school students who have learning disadvantages, for its Career Exploration Day. The Jebsen volunteers engaged about 140 students, using well-designed on-site experiences to immerse the students in the daily routines of Customer Services Executives, Body & Paint Technicians, Motor Mechanic Apprentices, Beer Technicians and Sales Representatives.

With contributions from Sasa Chen

Environmental Conservation

Turning coffee dregs into soap

Philanthropy

Becoming an everyday hero

Proud faces as Jebsen staff complete their first handmade soap!

A show-and-tell by Jebsen volunteers opens the eyes of secondary school students to diverse career paths.

Jebsen’s 2016

Social ResponsibilityJebsen Motors delivered 9,593 units of Porsche cars in 2016, and

opened a new Porsche Service Centre Hong Kong Hung Hom together with a new Bosch Jebsen Car Service Centre Shanghai

All of the Porsche Centres operated by Jebsen Motors made it into the Top 10 of Porsche China’s dealership ranking, and the prestigious “Dealer of the Year 2016” was awarded to the Porsche Centre Shenzhen Longgang/ Futian

Jebsen Industrial successful ly offered its second self-owned brand

BelleSalud

Blue Girl Beer celebrated its 110th

anniversary and for the consecutive

10th years as Hong Kong’s No.1 beer

brand by volume and value in 2016

Jebsen Fine Wines celebrated its 25th

anniversary in 2016

Jebsen Consumer has doubled Dyson’s business in Greater

China with its 200 stores in over 50

cities by the end of 2016

Act ive ly promote Green Building Products, Green

Logistics, and Green Office

Emiss ions o f t he Jebsen Group to ta led a t

9,144.68 tonnes of CO2-e, with carbon

intensity having decreased by 5% compared to the

2009 baseline level

Jebsen purchased 8,772.85

tonnes of carbon credit and achieve

carbon neutrality

again through offsetting its 2015 carbon

emissions

Jebsen for the 8th consecutive

year, pledged to participate in the Earth Hour event

Focus on “clothing, food, h o u s i n g , o u t i n g a n d entertaining”, and promote a new lifestyle “for blue”

Business Partnership Commitment to Our Staff

Commitment to Our Community

Commitment to Our Environment

Business Development

Jebsen’s CSR investment totaled at HKD 3 million

Jebsen organised 84

volunteer and philanthropic activities, with an attendance of

854 individuals

Jebsen will donate RMB

1 million in total to

Nankai University, starting from 2015 till 2019

Project Morning Star’s first five-year phase has

benefited over 1.2 million ophthalmic

patients in rural China

Project Morning Star’s second five-year phase

plans to invest RMB 7.4 million to build

China’s first “National Model of Comprehensive

Rural Eye Care Network”, initiated by the National

Institute of Hospital Administration (NIHA), in

collaboration with Orbis

In three years, 268 children have been benefited from

176 art courses with the support of 272 Jebsen

volunteers to start their pleasant art journey with Jebsen’s Life is Art programme

Among 2,644 employees in

Greater China,

female employees comprises of

52.1% of total employees

and 43.9% of management

A total of 208 employees

were promoted in 2016,

accounting for 7.9% of

all employees

A total of 37 staff activities and 26

lunch time seminars were organised with

2,700 person-times of participation

Total training volume was

1,337 person-times

and 9,483 hours, at

the expenditure of HKD

1.975 million

Jebsen continued to promote its new Employer Value Proposition, and held the “Salute to Jebsen Heroes” campaignPerformance

Revenue reached HKD 13.3 billion in 2016, with a

5% increase in net profit for

the operating units

Earth Hour

Jebsen’s 2016

Social ResponsibilityJebsen Motors delivered 9,593 units of Porsche cars in 2016, and

opened a new Porsche Service Centre Hong Kong Hung Hom together with a new Bosch Jebsen Car Service Centre Shanghai

All of the Porsche Centres operated by Jebsen Motors made it into the Top 10 of Porsche China’s dealership ranking, and the prestigious “Dealer of the Year 2016” was awarded to the Porsche Centre Shenzhen Longgang/ Futian

Jebsen Industrial successful ly offered its second self-owned brand

BelleSalud

Blue Girl Beer celebrated its 110th

anniversary and for the consecutive

10th years as Hong Kong’s No.1 beer

brand by volume and value in 2016

Jebsen Fine Wines celebrated its 25th

anniversary in 2016

Jebsen Consumer has doubled Dyson’s business in Greater

China with its 200 stores in over 50

cities by the end of 2016

Act ive ly promote Green Building Products, Green

Logistics, and Green Office

Emiss ions o f t he Jebsen Group to ta led a t

9,144.68 tonnes of CO2-e, with carbon

intensity having decreased by 5% compared to the

2009 baseline level

Jebsen purchased 8,772.85

tonnes of carbon credit and achieve

carbon neutrality

again through offsetting its 2015 carbon

emissions

Jebsen for the 8th consecutive

year, pledged to participate in the Earth Hour event

Focus on “clothing, food, h o u s i n g , o u t i n g a n d entertaining”, and promote a new lifestyle “for blue”

Business Partnership Commitment to Our Staff

Commitment to Our Community

Commitment to Our Environment

Business Development

Jebsen’s CSR investment totaled at HKD 3 million

Jebsen organised 84

volunteer and philanthropic activities, with an attendance of

854 individuals

Jebsen will donate RMB

1 million in total to

Nankai University, starting from 2015 till 2019

Project Morning Star’s first five-year phase has

benefited over 1.2 million ophthalmic

patients in rural China

Project Morning Star’s second five-year phase

plans to invest RMB 7.4 million to build

China’s first “National Model of Comprehensive

Rural Eye Care Network”, initiated by the National

Institute of Hospital Administration (NIHA), in

collaboration with Orbis

In three years, 268 children have been benefited from

176 art courses with the support of 272 Jebsen

volunteers to start their pleasant art journey with Jebsen’s Life is Art programme

Among 2,644 employees in

Greater China,

female employees comprises of

52.1% of total employees

and 43.9% of management

A total of 208 employees

were promoted in 2016,

accounting for 7.9% of

all employees

A total of 37 staff activities and 26

lunch time seminars were organised with

2,700 person-times of participation

Total training volume was

1,337 person-times

and 9,483 hours, at

the expenditure of HKD

1.975 million

Jebsen continued to promote its new Employer Value Proposition, and held the “Salute to Jebsen Heroes” campaignPerformance

Revenue reached HKD 13.3 billion in 2016, with a

5% increase in net profit for

the operating units

Earth Hour

Jebsen’s 2016

Social ResponsibilityJebsen Motors delivered 9,593 units of Porsche cars in 2016, and

opened a new Porsche Service Centre Hong Kong Hung Hom together with a new Bosch Jebsen Car Service Centre Shanghai

All of the Porsche Centres operated by Jebsen Motors made it into the Top 10 of Porsche China’s dealership ranking, and the prestigious “Dealer of the Year 2016” was awarded to the Porsche Centre Shenzhen Longgang/ Futian

Jebsen Industrial successful ly offered its second self-owned brand

BelleSalud

Blue Girl Beer celebrated its 110th

anniversary and for the consecutive

10th years as Hong Kong’s No.1 beer

brand by volume and value in 2016

Jebsen Fine Wines celebrated its 25th

anniversary in 2016

Jebsen Consumer has doubled Dyson’s business in Greater

China with its 200 stores in over 50

cities by the end of 2016

Act ive ly promote Green Building Products, Green

Logistics, and Green Office

Emiss ions o f t he Jebsen Group to ta led a t

9,144.68 tonnes of CO2-e, with carbon

intensity having decreased by 5% compared to the

2009 baseline level

Jebsen purchased 8,772.85

tonnes of carbon credit and achieve

carbon neutrality

again through offsetting its 2015 carbon

emissions

Jebsen for the 8th consecutive

year, pledged to participate in the Earth Hour event

Focus on “clothing, food, h o u s i n g , o u t i n g a n d entertaining”, and promote a new lifestyle “for blue”

Business Partnership Commitment to Our Staff

Commitment to Our Community

Commitment to Our Environment

Business Development

Jebsen’s CSR investment totaled at HKD 3 million

Jebsen organised 84

volunteer and philanthropic activities, with an attendance of

854 individuals

Jebsen will donate RMB

1 million in total to

Nankai University, starting from 2015 till 2019

Project Morning Star’s first five-year phase has

benefited over 1.2 million ophthalmic

patients in rural China

Project Morning Star’s second five-year phase

plans to invest RMB 7.4 million to build

China’s first “National Model of Comprehensive

Rural Eye Care Network”, initiated by the National

Institute of Hospital Administration (NIHA), in

collaboration with Orbis

In three years, 268 children have been benefited from

176 art courses with the support of 272 Jebsen

volunteers to start their pleasant art journey with Jebsen’s Life is Art programme

Among 2,644 employees in

Greater China,

female employees comprises of

52.1% of total employees

and 43.9% of management

A total of 208 employees

were promoted in 2016,

accounting for 7.9% of

all employees

A total of 37 staff activities and 26

lunch time seminars were organised with

2,700 person-times of participation

Total training volume was

1,337 person-times

and 9,483 hours, at

the expenditure of HKD

1.975 million

Jebsen continued to promote its new Employer Value Proposition, and held the “Salute to Jebsen Heroes” campaignPerformance

Revenue reached HKD 13.3 billion in 2016, with a

5% increase in net profit for

the operating units

Earth Hour

Jebsen Group has released its Corporate Social Responsibility Report 2017 at the end of September. As one of Greater China’s early adopters of the Sustainability Reporting Guidelines by the Global Reporting Initiative, the Group has produced these reports annually since 2009. Notably, the Group has maintained its carbon neutral status by reducing carbon emissions by 5% compared to 2009, and 8,772.85 tonnes of carbon credit. The report also summarises its ongoing efforts across the three CSR pillars of environmental conservation, philanthropy and staff well-being.

With contributions from Sasa ChenDownload the full report from www.jebsen.com.

9CONNECTING

MINDSLeadership Journey

“Our purpose cannot be as simple as the accumulation of wealth. There must be pride in continuity. A long-standing family business has cultural heritage, traditions and values, and it is important that these are upheld and passed down from generation to generation,” said Mr Jebsen in an address that he delivered at the Hong Kong University of Science and Technology (HKUST) in July this year.

Continuity gives rise to stability, he said, which ensures that the Group has legs to stand on while allowing an entrepreneurial spirit to thrive.

This entrepreneurial spirit, which Mr Jebsen describes as “not having all the answers but asking all the right questions”, has seen the Group make a tectonic shift in business focus. As China, and the world, changed, the Group relinquished its shipping roots in the 1980s and turned to import and export trade. This was gradually refined into a focus on marketing and distribution and, today, to building brands.

“I believe that entrepreneurship cannot be shared. We have to be empowered so that when a situation arises, we can make decisions without spending time sourcing for feedback or involving too many people. But at the same time, this also means that having a system of checks and balances is essential,” he said.

“As a Group, we need to be receptive to change, to pick up on trends quickly. We need to have the curiosity to look beyond our universe, and the humility to accept change, even if it means going back to the drawing board. Today, the megatrend we face is digitisation. How is the market responding to it? How can we use it to improve people’s lives? The answers to these questions are on the ground, not in an ivory tower, so that’s where leaders should be — on the ground,” he said.

While continuity is an enabler, Mr Jebsen also admits that it is also a vulnerability to family-owned businesses. Leadership succession is one such challenge.

“The question of ‘what if there is no successor’ is a very real one for any family-owned business. We have developed backup plans in case that ever happens to us but, what is perhaps more important, is to build a management and operational structure that is independent, sound and sustainable. The company cannot be totally dependent on one person; we cannot allow one person to hold all the keys,” he pointed out.

But a ship cannot be without a captain, so grooming the next generation of leaders is certainly on the Group’s boardroom agenda.

Elaborating on this, Mr Jebsen said, “To be a successor, you’d first have to be able and willing to do the work. You’d need to have the experience and qualifications too. Most of all, you need empathy and good judgement. Managing a family business is all about managing relationships. I’m not referring to gaining favours, it’s about dealing with people. It’s learning to walk the line between equality and fairness, understanding that you can’t please everyone all the time, but always having conviction in your decisions.”

Since 1995, Jebsen Group has sponsored the HKUST Scholarship via the Jebsen Education Fund. In 2013, the Group donated HK$10 million to establish the Michael Jebsen Professorship in Business to allow the School of Business and Management to strengthen its faculty with the recruitment of global top scholars.

A culture of continuity Group Chairman Mr Hans Michael Jebsen reveals the importance of continuity in a family business.

Four generations and 120 years after its founding, Jebsen Group remains a 100% family-owned business. Chairman Mr Hans Michael Jebsen, who joined the company in 1981 and spent his first 15 years learning the ropes from his uncle and former Chairman Michael Jebsen, believes that family businesses play an important role in society.

Group Chairman Mr Hans Michael Jebsen spoke at length about the uniqueness of family-owned businesses during a case study presentation at HKUST.

Mr Jebsen has served on the HKUST Business School Advisory Council since 2011 and, effective September 2017, has been appointed as its Chairman. He is also a member of the University’s Court and was awarded an Honorary Doctorate in 2015. ”

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10CONNECTING

MINDSPeople Speak

Let’s Chat! 8 questions with Peggy Zhu, Graphic Designer, Jebsen Fine Wines

1. What is graphic design to you? The interpretation of life and products through images and colours.

2. What’s a common misconception about your job? Like artists, we have the freedom of self-expression.

3. In reality? We provide a professional service. Our work is less about us,

more about the product and market needs.

4. Why do you love your job? Because I get to do what I love in a happy, harmonious environment.

5. What makes you good at your job? The ability to combine my passion for design with a willingness

to learn about fine wines.

6. What’s your most memorable project? Racing against time to prepare for the concurrent brand launches

“If somebody were to take a candid photo of me at work, it is likely that the photo will show me doing something creative — brainstorming for marketing campaign ideas, drawing up solutions to issues, or designing the rundown for an important press launch,” said Ms Tsui, who counts the 2015 product launch of the CASIO TR60 selfie camera among her most memorable projects in her 10-year career with Jebsen.

“I knew that in order to impress journalists in this consumer tech-saturated market, I had to do something vastly different so I changed the angle of our pitch and positioned the TR60 not as a camera, but a fashion accessory,” she shared.

Ms Tsui and her team invited local designers to create fashion styles to match each colour and did a photo shoot with models. Through this innovative approach, the team went from marketing a camera to selling an image — a stellar example of how creativity can make a tangible business impact!

Getting creative Ms Maible Tsui, Jebsen Consumer’s Assistant Marketing Communications Manager, shares how she built a rewarding career by thinking out of the box.

Success Breeds Success

Because she has the freedom to be creative, Ms Tsui enjoys greater job satisfaction and career development.

Every day, I get to flex my brain and think of new ideas. In the fast-changing and competitive consumer market, it takes courage and a great deal of out-of-the-box thinking to hit a breakthrough.

of Kalamanda Wine, which is Jebsen Fine Wines’ self-owned brand, and Edmund de Rothschild Baron, which we started to represent in November 2015.

7. Your favourite project? Hard to pick just one, but Kalamanda Wine is a very fun brand!

We present native Australian elements in a modern and vibrant way, creating a visual brand identity that sparks people’s curiosity.

8. Where do you get inspiration from? Everyday life. The people I meet, the things I see; they are all

sources of design inspiration.

11

Inside Jebsen

B R O A D E RHORIZONS

Teaming up for Success

Group Corporate Communications and marketing colleagues from across Hong Kong.

Recently, the Group Corporate Communications Department hosted a get-together for their marketing colleagues across different business units in Hong Kong. The event focused not only on staff bonding, but was also designed to facilitate peer sharing of the latest innovations and work insights from the respective industries.

Held at the Porsche Service Centre Hong Kong Hung Hom in Kowloon, the team enjoyed breathtaking sea views while sampling wines from the Group’s self-owned Twinwoods and Sacred Hill brands. They were also treated to a special cocktail of Blue Girl Beer and Weiwanjia yoghurt concentrate, a refreshing recipe introduced by our Beijing colleagues.

General Manager of Porsche Centre Hong Kong Mr Grant Smith personally took the team on a guided tour of the facility, which opened in October last year. He shared behind-the-scenes stories of the centre’s construction and the challenges that his team faced, such as the efficient management of space to accommodate an extraordinarily large number of vehicles requiring technical attention every single day. It was an eye-opening experience and a valuable opportunity to share the strengths and capabilities between different business units.

With contributions from Saber Yang

The Group placed the spotlight on its employees’ health and well-being this past September with a month-long emphasis on personal wellness. It brought free health check-ups and services to our colleagues in Beijing, Shanghai, Hangzhou, Guangzhou and Shenzhen on seven occasions.

Temporary booths manned by medical professionals were set up in the office for staff to consult. Over 200 colleagues took the opportunity to learn more about their health and benefit from professional advice. The

The ultrasonic atomiser alleviates upper respiratory tract discomfort and cleans up the lungs.Massaging away aches and pains. Thyroid ultrasonography services were available to help employees understand the health of their thyroid glands.

September is Wellness Month

most popular booth was the massage centre, where trained masseurs helped relieve bodily aches and pains. Other booths focused on specific parts of the body, from thyroid glands to lungs, to raise awareness on different health issues. Wellness Month has been a popular initiative in reminding employees of the importance of a happy and healthy life! With contributions from Karston Tsang

About Jebsen GroupFounded in 1895, Jebsen Group is a focused marketing and distribution organisation. With a unique long established presence and deep understanding in Mainland China, Hong Kong, Macau and Taiwan, the Jebsen Group is committed to support our partners’ needs in building market demand, generating and supporting sales and serving as an important link to customers throughout the region. From a broad spectrum of consumer, beverage, industrial, and motors products, Jebsen offers some 200 of the world’s leading products extensive local market access with a high degree in specialisation. 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.

12B R O A D E RHORIZONSFamily Enterprise

Sister group Jebsen & Jessen Hamburg has announced the acquisition of Brands Fashion GmbH as a strategic investment to bolster its capabilities in the textile industry. Effective January 2017, Brands Fashion becomes a third strategic pillar of the newly founded sub-holding, Jebsen & Jessen Textil (GmbH & Co.) KG, joining Juritex and L.E.G.

With the acquisition, Jebsen & Jessen Hamburg’s Jefferson GmbH has been merged into Brands Fashion and Mr Mathias Diestelmann becomes a member of its Managing Board. Dr Ulrich Hofmann, a founder of Brands Fashion, will remain on board as co-shareholder and Managing Partner.

Brands Fashion is a major supplier of work wear and tailored corporate wear in Europe. It is also a major shareholder of Clothing Network, a company that specialises in high-end clothing and merchandise for well-known brands such as Mercedes, Bentley and MAN. Jebsen & Jessen Hamburg has plans to expand Brands Fashion’s operations to Charlotte, North Carolina, in order to serve the American market.

With contributions from Dagmar Glissmann

From 2017, sister group Jebsen & Jessen Hamburg has reorganised its agrochemical activities under a new brand name and operative company, Jebagro GmbH. One of Jebagro’s first business priorities was to prepare over 100 product registrations for markets in Central America and the Andean States of South America. To pave the way for Jebagro’s entry into these markets, the company acquired a majority stake in Grupo Agrosol, Panama in June 2017. The agrochemical and fertiliser company will be renamed in Jebagro Panama.

With a ready product line and direct market access, Jebagro is building a sales infrastructure to support business expansion into a new part of the world.

With contributions from Dagmar GlissmannTo support its market entry into Central and South America, Jebagro acquired Grupo Agrosol in June 2017.

Jebsen & Jessen Hamburg grows textile business

Jebsen & Jessen Hamburg and Brands Fashion GmbH are now family.

Jebagro moves into Central and South America