creating a global leader in beauty - infoinvestnatu.infoinvest.com.br/enu/6062/project bacchus -...
TRANSCRIPT
Creating a Global Leader in Beauty
1
Transaction Overview (CFO 5 min.)
Strategic Rationale (CEO 10 min,)
The Body Shop Highlights (VP International 15 min.)
Q & A (30 min.)
3
Transaction Overview
José Roberto Lettiere - CFO
4
Transaction Overview• Exclusivity Agreement
Following an extensive review of the The Body Shop, Natura submitted a firm offer to L’Oréal, and has entered with an exclusive agreement with L’Oréal to acquire The Body Shop
The proposed transaction values The Body Shop at an enterprise value of EUR 1.0 billion.
• Consideration and Financing
100% cash payment upon closing
Debt financing at Natura level in place for the transaction
• Timing: Closing in 2017
• Conditions
The proposed transaction will be submitted to L’Oréal’s employees representative body and is subject to regulatory approval both in Brazil and the US.
5
Strategic Rationale
João Paulo Ferreira - CEO
Highly Compelling Strategic Rationale
› Acquire a leading truly global brand complementary to Natura and Aesop
› Shared value and vision of positive economic, environmental and social impacts: companies committed to building a better world
› In-depth knowledge of sustainable extractive communities
› Transform Natura into a global omnichannel leader in personal care and beauty
› Highly complementary portfolio of products across categories
› 3 brands, 3 channels, global footprint - value creation opportunity from cost and revenue synergies
6
+
Natura, Aesop and The Body Shop founded on
similar values and share a common vision
. Inspired by Our Essence and our
proximity with nature, science and technology, we propose to
expand and mobilize our Relationship Network, in
pursuit of creative solutions that promote a life of beauty, pleasure and sustainability,
We value all human endeavours undertaken with
intellectual rigour, vision, and a nod to the whimsical. Every Aesop product is made with
the same attention to detail we believe should be applied
to life at large, taking into consideration a diversity of
needs as well as seasonal and
the pursuit of social and environmental change. To
creatively balance the financial and human needs of our stakeholders employees, franchisees, customers,
Negócios Existentes7
8
The Body Shop Highlights
Robert Chatwin
VP International
The Body Shop Highlights
9
Strong performing regions account for ~75% of revenues
Strong brand awareness
High repurchase rates from loyal customers
Opportunities to increase digital retail
EMEA51%
APAC26%
North America
21%
Latam2%
Owned Stores
63%
Head Franchise
20%
E-Commerce8%
At-Home3%
Others6%
Global leading cosmetics and beauty branded retailer offering naturally-inspired products
In 2016, generated retail sales of around EUR 1.5 billion and net sales of EUR 921 million
Offers a wide product portfolio addressing almost all beauty market categories with a strong presence in body care, skincare, bath & shower, fragrance and make-up
Multi-channel distribution strategy with majority of revenue generated through owned stores, franchised stores and e-commerce
Presence in more than 60 countries
Total of more than 3.000 branded point of sales
10
The Body Shop Overview
Net Sales Breakdown by Channel (2016A)
Net Sales Breakdown by Geography (2016A)
Note: Geography breakdown excludes Global Travel Retail segment
The Body Shop Well Balanced Product Portfolio
Skin Care
Body Care
Gifts and Accessories
Make-up
Bath and Shower
Fragrance
11
The Body Shop Diversified Multi-Channel Distribution Strategy
Owned Stores
Network of 1,140 stores located across EMEA, APAC, North America and Latin America
Head Franchise
Network of 1,731 stores
Top countries are Saudi Arabia, Indonesia, South Korea, Japan, Malaysia, India, Switzerland and UAE
Own E-Commerce
Own website with presence in over 10 countries
Top countries are UK, USA, Canada and Australia
At-Home and Wholesale
Direct selling business in the UK and Australia
Wholesale through third-party department stores and e-retailers such as Amazon
12
836
921
193 197
2013A 2016A 1Q16 1Q17
CAGR'13A-16A: 3.3%
112
77
13,4%
8,4%
2013A 2016A
+2.3%
13Note: Considers like-for-like figures for 1Q16 and 1Q17
The Body Shop Financial Highlights
14
Strong Geographical Complementarity with Global Reach
› Direct Selling through 1.3m consultants
› Growing online platform
› Retail presence through 14 stores and 3,000 drugstores
› Retail presence through 130+ stores
› Broad geographic presence in 21 States
› Established online platform supported by distribution center
16Nota: Numeros referentes ao primeiro trimestre de 2017
The potential acquisition of The Body Shop will be another important step of Natura’s multichannel strategy
Natura will add significant value to The Body Shop given its expertise in branding and manufacturing
+
Strong Strategic Fit in Brasil
17
• The Body Shop direct selling in Latin America
• Natura international growth acceleration
• Aesop growth acceleration
• Efficiency / scale gains
• Access to global Supply Chain
• Currency and geographic diversification
After closing, further details will be disclosed to the market
Value Creation Opportunities
18
Q & A
19
thank you