Beiersdorf Focus on Skin Care. Closer to Markets.

Transcription

1 Beiersdorf Focus on Skin Care. Closer to Markets. Commerzbank German Investment Seminar New York, January 10-11, 2012

2 Disclaimer Some of the statements made in this presentation contain forwardlooking 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. January 10-11,

3 Beiersdorf at a Glance Founded in Group sales 2010: 5,571 million*. * restated for trade allowance reclassification 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. January 10-11,

4 Global Iconic Brands in our Distribution Channels Pharmacy Mass Selective January 10-11,

5 Our Strategy Focus on skin care Focus on core brands & categories. Strenghtening NIVEA brand equity with new platform. Streamlining of portfolio with focus on skin care. Closer to markets Regional strategy within global framework. Profit responsibility for each regional board member. Regional product adaptations. January 10-11,

6 2010 and 2011 Were Transition Years The World s Best Skin Care Company 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 Feb 2010: Focus on Skin Care. Closer to Markets January 10-11,

7 Generation Change New CEO Stefan Heidenreich Stefan F. Heidenreich joined the Executive Board on January 1, Stefan F. Heidenreich will take over as CEO from Thomas-B. Quaas following the AGM in April 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. New CEO will start in April 2012 to drive growth and profitability further. January 10-11,

8 Focus on Skin Care January 10-11,

9 Skin Care is Our Core Competence Skin care is our heritage More than 125 years of expertise in skin care. Well developed brand equity. NIVEA has always stood for trust, care and closeness....our present 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... and our future 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 January 10-11,

10 NIVEA and Labello have 166 #1 Positions Worldwide Category Body & Hand Face Lip* Sun Men s Deo Shower Bath Baby Hair Care We will further build our market leadership in skin and personal care. Hair Styling Country Europe West Austria Belgium France Germany Greece Ireland 1 2 Italy Netherlands Portugal Spain Switzerland Turkey United Kingdom Europe North Denmark Norway Sweden Europe East Bulgaria Croatia Czech Rep Estonia Hungary Latvia Lithuania Poland Romania Russia Serbia Slovak Rep Slovenia Ukraine * Depending on market, NIVEA Lip Care or Labello. Labello had 16 #1 positions in 2009 and Source: AC Nielsen / IRI, Status as of December 31, 2010 January 10-11,

11 Portfolio Pruning & Category Exits 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 Product pruning reduces complexity and improves growth opportunities. January 10-11,

12 New NIVEA Platform January 10-11,

13 NIVEA Comprehensive 360 Presence January 10-11,

14 Examples of the NIVEA Campaign Germany USA China South Korea January 10-11,

15 Closer to Markets: Making a Difference in the USA NIVEA 100 Year Anniversary Pop-Up Store in Grand Central Station in New York City. January 10-11,

16 Closer to Markets: Making a Difference in the USA 9.9% CAGR on focus brands 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. Growing nearly 3X our closest category competitor Beiersdorf P&G Unilever L Oreal J&J KAO Colgate Source: Nielsen Household Panel January 10-11,

17 Closer to Markets: Making a Difference in the USA 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. Beiersdorf has received multiple supplier of the year award recognitions. January 10-11,

18 Closer to Markets: Making a Difference in the USA January 10-11,

19 Final Phase of the Strategy Implementation 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. This will strengthen our future profitability and our competitiveness. January 10-11,

20 Strategy Going According to Plan Focus on skin care Focus on core brands & categories. Launch of NIVEA platform with 100-year campaign. Streamlining of portfolio with focus on skin care. Closer to markets Dedicated regional board members. Finalized and aligned operating model. Designing the to-be organization. Implementation of the to-be organization. January 10-11,

21 Sales and EBIT Development Group (in mill. ) 5,120 5,507 Sales 5,971 5,748 (5,571*) 6,194 Earnings Before Interest and Taxes Growth (organic) Group +7.3% +9.1% +7.5% -0.7% +3.1% EBIT margin (12.8% *) 11.7% 12.4% 11.7% 10.2% 11.3% * 2010 Sales and EBIT margin restated for trade allowance reclassification. EBIT 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 January 10-11,

22 Key Figures Group (restated for trade allowance reclassification) Jan. Sept Jan. Sept Change nominal / like-for-like mill. mill. in % Sales 4,228 4, / +2.1 EBIT Profit after Tax Earnings per Share in EBIT * Profit after Tax * EBIT Margin * 13.1% 11.5% Profit after Tax Margin * 8.4% 7.8% Earnings per Share in * * Excluding special factors due to the implementation of the Consumer Business Strategy January 10-11,

23 Guidance 2011 (restated for reclassification, impact on EBIT margin approx. 120bps) Sales development on a like-for-like basis Profit development on an operative basis Consumer Consolidate sales and maintain level of EBIT margin level 10-11%.* tesa Sales growth 6 7%. EBIT margin clearly above 11%. Total Group Slight sales growth vs EBIT margin 10-11%.* PAT margin 7-8%.* * Including additional marketing investment, excluding special factors. January 10-11,

24 How to Contact Investor Relations Beiersdorf Website IR-Hotline Tel: +49 (0) Fax: +49 (0) January 10-11,