welcome to the 2016 - rb agm · pdf filecompany. growth in both developed and ... velvet...

Post on 08-Mar-2018

214 Views

Category:

Documents

1 Downloads

Preview:

Click to see full reader

TRANSCRIPT

Welcome to the 2016 - RB AGM

5th May 2016

RB presentation to Shareholders2016 AGM

5th May 2016

Disclaimer

Cautionary note concerning forward-looking statements• This presentation contains statements with respect to the financial condition, results of operations and business of RB (the “Group”)

and certain of the plans and objectives of the Group that are forward-looking statements. Words such as ‘‘intends’, ‘targets’, or the negative of these terms and other similar expressions of future performance or results, and their negatives, are intended to identify such forward-looking statements. In particular, all statements that express forecasts, expectations and projections with respect to future matters, including targets for net revenue, operating margin and cost efficiency, are forward-looking statements. Such statements are not historical facts, nor are they guarantees of future performance.

• By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including many factors outside the Group’s control. Among otherrisks and uncertainties, the material or principal factors which could cause actual results to differ materially are: the general economic, business, political and social conditions in the key markets in which the Group operates; the ability of the Group to manage regulatory, tax and legal matters, including changes thereto; the reliability of the Group’s technological infrastructure or that of third parties on which the Group relies; interruptions in the Group’s supply chain and disruptions to its production facilities; the reputation of the Group’s global brands; and the recruitment and retention of key management.

• These forward-looking statements speak only as of the date of this announcement. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

3

Rakesh KapoorChief executive officer

4

is a world where people are healthier and live better

Our vision

Our purposeis to make a difference by giving people innovative

solutions for healthier livesand happier homes

5

betterfinancialsHow we drive growthand outperformance

bettersocietyHow we support

our communities anddevelop our people

betterenvironmentHow we reduce our

environmental impact

Delivering value to all stakeholders

6

Better Society

7

Better Environment

8

Target: >£500m NR more sustainable innovations

Zero hazardous & non hazardous waste to landfill by 2016

2015 - Better Financials

9

Net Revenue growth

+6%*

Outstanding Net income

growth

+15%**

Strongcash conversion

c.100%

Finaldividend

88.7p

* LFL growth **adjusted to exclude exceptional items at constant exchange rate

Virtuous earnings model delivers

10

Grossmargin

Reinvestdrive

NetRevenuegrowth

Fixedcost

Operatingmargin

+140bps(Mix / Project Fuel / pricing)

-50bps(Efficiency programmes)

+210bps

200bpsoutperformance

+£48m* (-20bps)(synergies reinvested)

*at constant exchange rate

11

0

1000

2000

3000

4000

5000

6000

7000

Growth by Area

Net revenue trend, 2013-2015 (in £m & 2015 LFL growth %)

+5% +9% +4%

Broad based growth – significant negative fx

ENA DvM Food

Total LFL

+6%

Total actual

0%

12

Health & Hygiene led growth

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Health Hygiene Home Portfolio

Net revenue trend, 2013-2015 (in £m & 2015 LFL growth %)

+14% +3% +2% +1%

Project Supercharge

13

Project supercharge

ORG / CULTURE/ TALENT

Simpler & moreagile organisation

VIRTUOUSEARNINGS MODEL

14

Consumer and Store at the centre of what we do

Consumer Customer

15

Size of innovations used to decreasefrom conception to launch

16

Size of Innovation

Create Activate

A simpler, more agile organization connected by acommon purpose

ACTIVATESCALECREATE

17

CREATE: Bigger innovations

18

Average Size of top projects*CREATE

*average size of top 10 projects 2014 2015

27%increase

SCALE: As global as possible

19

Innovations launching in more marketsSCALECREATE

2014 2015

18%increase

*average number of countries launched per innovation

Size of innovations to increase fromconception to launch – the Power of 1!

20

Size of Innovation

Create Scale Activate

Project supercharge

ORG / CULTURE/ TALENT

Simpler & moreagile organisation

VIRTUOUSEARNINGS MODEL

Super efficient& cost conscious

21

Significant savings potential

CATEGORY BENCHMARKS

£100M - £150m

Sample is 25 companies – all fmcg / hc)

15cost categories

22

Cost efficiency programme

3 Year Target(2015-17)

£150m

2015 Progress

£100m

23

Project Supercharge

Growth & Outperformance

ORG / CULTURE/ TALENT

Simpler & moreagile organisation

VIRTUOUSEARNINGS MODEL

Super efficient& cost conscious

24

2015: Continued progress…

25

Strategic progress Operational progress

Health / Hygiene led growth

More connected company

Growth in both Developed andEmerging markets

Supercharged operating model

Supercharged earnings model

26

Over £25bn shareholder value created since Jan 2012

80

90

100

110

120

130

140

150

160

170

180

190

200

210

220

230

240

30/12/2011 30/06/2012 31/12/2012 30/06/2013 31/12/2013 30/06/2014 31/12/2014 30/06/2015 31/12/2015

RB TSR

FTSE 100 TSR

Significant outperformance of the FTSE 100 which returned 30% over the same period.

£100 Invested in RB on 1 January 2012 was worth £226 on 31 December 2015

H1 innovationsmore detail on a selection…….

27

2828

Nurofen® Soft Chews for Children

Nurofen® Soft Chews for ChildrenEffective relief with just the right strength medicine for kids 7-11. In aninnovative gummy format; they’re easy to chew and no need for water.

29

Scholl® Velvet Smooth Wet & Dry Rechargeable Foot File

Scholl® Velvet Smooth Wet & DrySoft beautiful feet effortlessly – on wet and dry skin

30

3131

Dettol® Gold

Dettol® Gold Delivers 100% superior germ kill vs. other anti-bacterial soaps in the market

32

Finish® Supercharged Powerball

Finish® Supercharged PowerballOne supercharged solution for all your dishwashing needs

33

3434

Air Wick® Pure

Air Wick® Pure Just fragrance, no wet spray. A water-free aerosol providing the pleasure of Pure fragrance

35

2016

36

2016: Targets

37

Net revenue*

+4-5%

Operating margin**

Moderateexpansion + Supercharge

* LFL at constant rates** Adjusted to exclude the impact of exceptional items. Moderate margin expansion to be supplemented in 2016 by year 2 Project Supercharge efficiencies.

Q1 Results 2016

38

Q1 Financials: Summary

39

Strong start to the year:

Like-for-like net revenue growth +5%

Total revenue growth +4%impacted by net negative impact of M&A and fx

Health & Hygiene led growth:

Health & Hygiene+6% (LFL)

Driven by continued excellent health performance.

Broad based geographic growth:

ENA +3% (LFL)DvM +10% (LFL)

Stable developed markets and Variable emerging markets

Key messages

Right strategy

Right Culture

40

Q&A

Resolutions

42

Resolution 1To receive the 2015 report and financial statements

Resolution 2To receive and adopt the Directors’ remuneration policy

Resolution 3To receive and adopt the Directors’ remuneration report

Resolution 4To declare a final dividend

Resolutions 5 - 15Election / re-election of Directors

Resolution 16To re-appoint PwC as auditors

Resolution 17To authorise Directors to determine auditors’ remuneration

Resolution 18To authorise the Company to make political donations

Resolution 19To renew Directors’ authority to allot shares

Resolution 20 To renew Directors’ power to dis-apply pre-emption rights

Resolution 21To renew the Company’s authority to purchase its own shares

Resolution 22To approve the calling of General Meetings on 14 clear days’ notice

Thank you for attending 2016 - RB AGM

5th May 2016

top related