beiersdorf focus on skin care. closer to markets
TRANSCRIPT
Beiersdorf – Focus on Skin Care. Closer to Markets.
Commerzbank German Investment Seminar
New York, January 10-11, 2012
Disclaimer
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January 10-11, 2012 | 2
Some of the statements made in this presentation contain forward-
looking information that involve a number of risks and uncertainties. Such
statements are based on a number of assumptions, estimates,
projections or plans that are inherently subject to significant risks, as well
as uncertainties and contingencies that are subject to change. Actual
results can differ materially from those anticipated in the Company´s
forward-looking statements as a result of a variety of factors, including
those set forth from time to time in the Company´s press releases and
reports and those set forth from time to time in the Company´s analyst
calls and discussions. We do not assume any obligation to update the
forward-looking statements contained in this presentation.
This presentation does not constitute an offer to sell or a solicitation or
offer to buy any securities of the Company, and no part of this
presentation shall form the basis of or may be relied upon in connection
with any contract or commitment. This presentation is being presented
solely for your information and is subject to change without notice.
Founded in 1882.
Group sales 2010: €5,571 million*.
19,128 employees.
Beiersdorf is listed in the DAX.
NIVEA is the biggest skin care brand
worldwide.
Eucerin is a leading dermo-cosmetic brand.
La Prairie is a brand icon in the selective
anti-aging skin care market.
Beiersdorf at a Glance
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* restated for trade allowance reclassification
Global Iconic Brands in our Distribution Channels
Pharmacy Mass Selective
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Focus on skin care
Regional strategy within global framework.
Profit responsibility for each regional board member.
Regional product adaptations.
Closer to markets
Focus on core brands & categories.
Strenghtening NIVEA brand equity with new platform.
Streamlining of portfolio with focus on skin care.
Our Strategy
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Feb 2010:
Focus on Skin Care. Closer to Markets
Jul 2010:
New Board Structure
Dec 2010:
Refocusing the Business
May 2011:
New NIVEA Platform
Sep 2011:
Finalization of Operating Model
Dec 2011:
Final Phase:
Realignment of
Structures
The
World’s Best
Skin Care
Company
2010 and 2011 Were Transition Years
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Generation Change – New CEO Stefan Heidenreich
New CEO will start in April 2012 to drive growth and profitability further.
Stefan F. Heidenreich joined the Executive
Board on January 1, 2012.
Stefan F. Heidenreich will take over as CEO
from Thomas-B. Quaas following the AGM in
April 2012.
Thomas-B. Quaas shall switch to the
supervisory board at the AGM.
The strategy “Focus on Skin Care. Closer to
Markets” will be continued and enhanced.
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Focus on Skin Care
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Skin Care is Our Core Competence
More than 125 years of expertise in skin care.
Well developed brand equity.
NIVEA has always stood for trust, care and closeness.
Skin care is our
heritage…
...our present…
.. and our future
NIVEA has 150 No. 1 positions worldwide (FY 2010).
Beiersdorf is undisputed expert in skin care.
Skin care* will account for 45% of the global market growth in cosmetics.
Users are more brand loyal and less price driven in the skin care market.
Skin care is of high interest for consumers.
Skin care has an above average profit margin.
* Body, Hand and Face Care
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We will further build our market leadership in skin and personal care.
NIVEA and Labello have 166 #1 Positions WorldwideCategory
Country
Body &
HandFace Lip* Sun Men´s Deo Shower Bath Baby Hair Care
Hair
Styling
Europe West
Austria 1 1 1 1 1 1 1 5 2
Belgium 1 1 1 1 2 1 2 1 3 5 2
France 1 1 1 2 2 3 3 8 7
Germany 1 1 1 1 1 1 2 3 5 4
Greece 1 2 1 2 1 2 8
Ireland 1 2
Italy 1 1 1 1 1 2 3 6 4 5 4
Netherlands 1 1 1 1 1 2 2 4 6
Portugal 1 1 1 1 1 3
Spain 1 3 2 1 5
Switzerland 1 1 1 1 1 1 1 2 2 3 2
Turkey 2 1 1 1
United Kingdom 1 4 2 1 2 4 8
Europe North
Denmark 1 2 1 2 2
Norway 2 2 2 2 8
Sweden 1 1 2 1 2 2
Europe East
Bulgaria 1 3 1 1 1 4
Croatia 1 1 1 1 1 3
Czech Rep. 1 1 1 2 1 5 3
Estonia 1 3 2 1 7
Hungary 1 3 1 2 1 3 8 4 8 3
Latvia 1 3 2 1 7
Lithuania 1 1 1 1 5
Poland 1 2 1 5 1 1 1 1 5 3
Romania 1 1 2 1 1 4 2
Russia 2 6 1 2 2 8 7
Serbia 1 1 1 1 1 2
Slovak Rep. 1 2 1 1 1 4 3
Slovenia 1 1 1 1 2 4
Ukraine 2 5 3 2 2 9 4
* Depending on market, NIVEA Lip Care or Labello. Labello had 16 #1 positions in 2009 and 2010. Source: AC Nielsen / IRI, Status as of December 31, 2010
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Portfolio Pruning & Category Exits
Product pruning reduces complexity and improves growth opportunities.
We have completed the cross-category product pruning.
Thousands of SKUs (19% of the European assortment) have
been removed.
Without slow-moving SKUs, the quality of our sales growth has
improved.
In addition Make-Up is completely out of the portfolio and Hair
Care/Styling is exited in selected countries.
The streamlined portfolio has better profitability and will enable
faster growth.
SKU = Stock Keeping Unit
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New NIVEA Platform
NIVEA – Comprehensive 360° Presence
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Examples of the NIVEA Campaign
Germany
China South Korea
USA
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NIVEA 100 Year Anniversary Pop-Up Store in Grand Central Station in New York City.
Closer to Markets: Making a Difference in the USA
A clear and focused skin care strategy has resulted in
continued strong sales growth for our US affiliate.
Within our categories, Beiersdorf remains one of the
fastest growing skin care companies in the USA among
top competitors.
Since deployment of US strategy NIVEA has increased
penetration nearly five-fold.
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9.9%
CAGR on
focus brands
Growing nearly
3X our closest
category
competitor
2007 2011
Closer to Markets: Making a Difference in the USA
Beiersdorf P&G Unilever L„Oreal J&J KAO ColgateSource: Nielsen Household Panel
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Beiersdorf has received multiple supplier of the
year award recognitions.
Industry recognitions and
product awards
Recognition from our top US customers
and retail partners
Award recognition among our most influential
US skin and beauty publications.
Closer to Markets: Making a Difference in the USA
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Closer to Markets: Making a Difference in the USA
Final Phase of the Strategy Implementation
This will strengthen our future profitability and our competitiveness.
Strengthening the regional focus through realignment of corporate structures.
Improvements to structures and processes offer potential cost savings of €90 million
per year as from 2014 (full effect).
Up to 1,000 employees may be affected worldwide.
Extraordinary one-time expenses of approximately €125 million.
Realignment of the business in China entails write-downs of intangible assets of
approximately €140 million.
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Focus on skin care
Dedicated regional board members.
Finalized and aligned operating model.
Designing the to-be organization.
Implementation of the to-be organization.
Closer to markets
Focus on core brands & categories.
Launch of NIVEA platform with 100-year campaign.
Streamlining of portfolio with focus on skin care.
Strategy Going According to Plan
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Sales Earnings Before Interest and Taxes
11.7% 12.4% 11.7% 10.2% 11.3%
EBIT marginGrowth (organic) – Group
(in mill. €)
+7.3% +9.1% +7.5% -0.7% +3.1%
EBIT 2006 – 2008 excluding special factors due to the realignment of the Consumer Supply Chain and divestments.
EBIT 2010 excluding special factors due to measures to implement the Consumer Business Strategy 2015.
597
684 696
587
699
2006 2007 2008 2009 2010
5,1205,507
5,9715,748
6,194
2006 2007 2008 2009 2010
Sales and EBIT Development – Group
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(5,571*)
(12.8% *)
* 2010 Sales and EBIT margin restated for trade allowance reclassification.
Key Figures – Group
* Excluding special factors due to the implementation of the Consumer Business Strategy 2015.
Jan. – Sept. 2010
Jan. – Sept. 2011
Changenominal / like-for-like
mill. € mill. € in %
Sales 4,228 4,275 +1.1 / +2.1
EBIT 552 491
Profit after Tax 353 336
Earnings per Share in € 1.53 1.45
EBIT * 552 492
Profit after Tax * 353 333
EBIT Margin * 13.1% 11.5%
Profit after Tax Margin * 8.4% 7.8%
Earnings per Share in € * 1.53 1.44
(restated for trade allowance reclassification)
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Guidance 2011
* Including additional marketing investment, excluding special factors.
Consumer
Consolidate sales and maintain level of
2010.
EBIT margin level 10-11%.*
tesa
Sales growth 6–7%.
EBIT margin clearly above 11%.
Total Group
Slight sales growth vs. 2010.
EBIT margin 10-11%.*
PAT margin 7-8%.*
Sales development on a like-for-like basis
Profit development on an operative basis
(restated for reclassification, impact on EBIT margin approx. 120bps)
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How to Contact Investor Relations
Beiersdorf Website
www.Beiersdorf.com
IR-Hotline
Tel: +49 (0) 40 4909 5000
Fax: +49 (0) 40 4909 18 5000
Email: [email protected]
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