The new strategy of TIM SA
Upon successful implementation of the strategy for 2019-2021,TIM SA, Poland’s largest distributor of electronic engineering equipment, announces a new long-term development strategy with financial objectives defined until 2026. In this period, the leader of the Polish B2B e-commerce, plans to achieve over 3 million PLN of revenues of EBITDA above 250 million PLN on the unit level.
TIM’s strategy for 2019-2021 provided for exceeding the level of 1 billion PLN of unit revenues from sales and achievement of EBITDA profitability of at least 3.6%. Achievement of these objectives was based on two pillars: development of the hybrid model of sale of electronic engineering products (in place since launch of the TIM.PL e-commerce platform in 2013) and creating alternative models of trade in technical materials.
Sales revenues of TIM SA grew by 67% between 2018 (the year before implementation of the prior strategy) and 2021. In 2021, the alternative sale channels, especially the hybrid marketplace, had almost 9% share (110 million PLN) of TIM SA’s total sales revenues.
‘The first financial objective of the 2019-2021 strategy (1 billion PLN of unit sales) was achieved in late October 2021, and we finished the year above 1.25 billion PLN. We have exceeded the other objective even further – EBITDA profitability finally reached 8.7% – describes Krzysztof Folta, President of the Management Board of TIM SA. – At the same time, the Company started to pay dividend to its stakeholders regularly and in spring 2021 it presented its dividend policy for 2021-2023. In line with this policy, for the previous year alone we paid more than 53 million PLN in dividend. Building value for the stakeholders in the last three years was certainly a success’ – he concludes.
Thinking of busy professionals
The new strategy of TIM SA is based on further development of the B2B e-commerce platform, focused especially on the needs and expectations of professionals in the electronic engineering industry.
‘We have achieved the position of a leader in electronic engineering in Poland, both in sales revenues and number of customers. The new strategy is our recipe how to become the e-commerce platform of first choice for our customers not only with the broadest product portfolio, but also with attractive terms of trade’ – says Krzysztof Folta. – ‘We have known our customers for years. In the process of developing the new strategy, we relied on their opinions, as well as on opinions of our suppliers and staff. As a result, we are convinced that the greatest asset of professionals is their time’ – he explains.
Thence TIM’s new mission: “Make work easier for professionals” The way to implement it is by maximising comfort of using the e-commerce platform – at any place and time, with any device. Thus, TIM.PL is to be always available, of course with certain and timely delivery and competitive purchase terms.
In the new strategy you can find a declaration: “At TIM, you order easily, wait shortly and you always get everything you need: product, support and knowledge”.
‘It is our ambition not only to provide the broadest product offer in Poland. We want to become a real electronic engineering hub where busy professionals can find technical support and much more – a community focused on knowledge of electric engineering’ – declares Piotr Nosal, member of the Management Board and Trade Director at TIM SA.’ – We want TIM to become a sort of a showroom for industry premieres. A place where customers can find unique, valuable and exhausting content concerning products. With implementation of projects focused under TIM 2.0 name, the offer of TIM.PL will be even more personalised. At the same time, we work on development of a services portfolio for customers. And all this is designed to make work easier for professionals’ – he adds.
Team – a success plan
The new strategy of TIM SA is a long-term plan, but the financial objectives it includes are set for a five-year perspective. The company plans to achieve a unit level of annual revenues of 3 billion PLN and EBITDA above 250 million PLN by 2026.
‘These are ambitious goals, but realistic. The objectives in the prior strategy were described in a similar way and we achieved them successfully – says Piotr Tokarczuk, member of the Management Board and Financial Director of TIM SA. – ‘Achievement of the financial objectives requires further investment in technology, of course, and we’re ready for it, as the Company is a very good financial condition’ – he stressed.
But financial assets are not enough. It is at least equally important to involve the entire organisation to work on dozens of projects necessary for the strategy’s success.
‘It is no coincidence that we have titled one of the strategy’s pillars “TIM is team”. Out team of employees are excellently motivated people, who are passionate about what they do and who like where they work. TIM is a good and appreciated employer, as shown by the eNPS indicator. Our recent satisfaction survey held in late 2021 showed the indicator at 41, which is a level recorded in such organisations as Google, Netflix or Siemens’ – adds Piotr Tokarczuk.
TIM’s new strategy is associated with renewed visual identification of the Company and its slogan “We deliver electronic engineering to professionals”.