Beiersdorf Ag · XETR:BEI
Beiersdorf — H1 2020 Earnings Presentation
33 slides from Beiersdorf's earnings presentation, Aug 6, 2020
Slide 1: Half-Year Report 2020
HALF-YEAR REPORT 2020 August 6th, 2020
Slide 2: H1 Key Messages
H1 KEY MESSAGES SKIN CARE MARKETS SIGNIFICANTLY IMPACTED BY COVID-19 MARKET SHARE GAINS IN ALL BUSINESS UNITS PREPARING FOR CONTINUED VOLATILITY AHEAD ACCELERATING C.A.R.E.+ IMPLEMENTATION August 6, 2020 | Half-Year Report 2020 Page 2
Slide 3: Dealing with COVID-19
DEALING WITH COVID-19 CARE FOR OUR CARE FOR CARE FOR EMPLOYEES CONSUMERS COMMUNITIES August 6, 2020 | Half-Year Report 2020 Page 3
Slide 4: Brands Organic Growth H1 2020
BRANDS ORGANIC GROWTH H1 2020 CONSUMER TESA NIVEA DERMA HEALTHCARE LA PRAIRIE -8.8% +6.2% -7.7% -41.9% -10.9% -10.0% SALES GROWTH SALES GROWTH GROUP -10.7% SALES GROWTH August 6, 2020 | Half-Year Report 2020 Page 4
Slide 5: August 6, 2020 | Half-Year Report 2020 Page 5
August 6, 2020 | Half-Year Report 2020 Page 5
Slide 6: Dealing with COVID-19: La Prairie
DEALING WITH COVID-19 Travel retail decreased by up to 70% More than 80% of la prairie stores closed at the beginning of Q2 Significantly increased price promotion intensity by competitors
Slide 7: Win with Skin Care
WIN WITH SKIN CARE The most exclusive luxury Skin Care brand Ultimate consumer experience Top innovations to be launched in H2 SKIN CAVIAR PERFECT WHITE CAVIAR CONCEALER EYE EXTRAORDINAIRE
Slide 8: August 6, 2020 | Half-Year Report 2020 Page 8
August 6, 2020 | Half-Year Report 2020 Page 8
Slide 9: Dealing with COVID-19: Derma Market Development
DEALING WITH COVID-19 Market Development in % vs prior year 0.7% Derma markets more resilient. Pharmacies maintained their traffic -1.8% -2.0% Online sales increased significantly. More than 20% of Derma sales in North America are online -7.8% Q1 2020 Apr-20 May-20 YTD 05/2020 Eucerin & Aquaphor out
Slide 10: Win with Skin Care
WIN WITH SKIN CARE Continue successful strategy, amplified by accelerated digital presence Thiamidol remains an important growth driver – gained additional #1 positions in Brazil and Russia Promising start of Eucerin’s online Hyaluron Filler + Body Ointment market entry in China Elasticity 3D Serum
Slide 11: Dealing with COVID-19: Consumer, Shopper and Air Traffic
DEALING WITH COVID-19 CONSUMER SHOPPER AND CUSTOMER AIR TRAFFIC • Essential Personal Care • Shift to online and one- • Holiday season affected by products in high demand stop shopping -62% international air travel • Preference for trusted • Postponed activations and (YTD June) over smaller brands cl
Slide 12: Dealing with COVID-19: NIVEA Market Development
DEALING WITH COVID-19 Market Development in % vs prior year 8.5% Markets decelerated strongly: Sun protection -33% in June 0.6% Heavy market declines across -2.3% -3.2% categories. Personal Care remained -5.8% -7.0% more in demand than Skin Care -10.1% -9.6% -9.6% -15.3% NIVEA gained market share in
Slide 13: Win with Skin Care
WIN WITH SKIN CARE NIVEA provides relevant superior Skin Care for all More investment in digital than ever before Strong plan for the second half of 2020 Q10 Energy Naturally Good Anti-Age August 6, 2020 | Half-Year Report 2020 Page 13
Slide 14: Competitive Sustainable Growth
OUR COMMITMENT outperform the market create consumer value COMPETITIVE SUSTAINABLE GROWTH ensure sustainable profitability GROWTH DRIVERS CONSUMER CENTRICITY WIN WITH SKIN CARE ACCELERATE IN WHITE SPOTS THROUGH DIGITALIZATION INCREASE PRODUCTIVITY CULTURE & SOCIETY August 6, 2020 | Half-Year Report
Slide 15: Digital Consumer Connection
DIGITAL CONSUMER CONNECTION Consumer e-Com H1 2020: Advertising budget: Global consumer engagement: > +50% YoY > 1/3 online Qualified traffic uplift by +25% August 6, 2020 | Half-Year Report 2020 Page 15
Slide 16: Unlock White Spots - Expanding Our Global R&D Network
UNLOCK WHITE SPOTS - EXPANDING OUR GLOBAL R&D NETWORK Inaugurated new innovation center in Shanghai on July 23rd Driving relevant Face Care innovations with bundled global expertise Proving Beiersdorf’s strong commitment to growth in Asia August 6, 2020 | Half-Year Report 2020 Page 16
Slide 17: Care Beyond Skin
CARE BEYOND SKIN CARE BEYOND SKIN SUSTAINABILITY AGENDA August 6, 2020 | Half-Year Report 2020 Page 17
Slide 18: Care Beyond Skin: EUR 50m Aid Program
CARE BEYOND SKIN: EUR 50m AID PROGRAM 01 Disinfectants & Medical Supply 02 Product Donations 03 Employee Donations 04 Financial Donations Donated >1 million liters >5 million Skin and Employee donations, In total more than EUR 50m of disinfectant Hand Care products doubled by Beiersdorf support prog
Slide 19: Corporate Financial Donations – Our Focus Fields
CORPORATE FINANCIAL DONATIONS – OUR FOCUS FIELDS GIRLS EMPOWERMENT MEDICAL AID SOCIAL INNOVATION HUMANITARIAN WORK August 6, 2020 | Half-Year Report 2020 Page 19
Slide 20: Group – Key Figures
GROUP – KEY FIGURES JAN. – JUN. 2019 JAN. – JUN. 2020 CHANGE MILL. € MILL. € NOMINAL ORGANIC SALES 3,837 3,449 -10.1% -10.7% EBIT* 593 472 PROFIT AFTER TAX* 425 316 EBIT MARGIN* 15.4% 13.7% PROFIT AFTER TAX MARGIN* 11.1% 9.2% EARNINGS PER SHARE IN €* 1.84 1.37 *Excluding special factors. August 6, 2
Slide 21: Group – Segments
GROUP – SEGMENTS JAN. – JUN. 2019 JAN. – JUN. 2020 CHANGE GROUP MILL. € MILL. € NOMINAL ORGANIC SALES 3,837 3,449 -10.1% -10.7% EBIT* 593 472 EBIT MARGIN* 15.4% 13.7% CONSUMER SALES 3,146 2,834 -9.9% -10.9% EBIT* 482 376 EBIT MARGIN* 15.3% 13.3% TESA SALES 691 615 -11.0% -10.0% EBIT 111 96 EBIT MARG
Slide 22: Consumer – Growth
CONSUMER – GROWTH ORGANIC SALES GROWTH IN % +0.9* +4.8 -3.3 +0.3* -10.9 -18.7 +0.3* +0.3* FY 2019 Q1 2020 Q2 2020 H1 2020 *Effect on consumer organic sales growth if sales in Argentina had been calculated at constant FX rates. August 6, 2020 | Half-Year Report 2020 Page 22
Slide 23: Consumer – Brands
CONSUMER – BRANDS NIVEA DERMA HEALTHCARE LA PRAIRIE Q2 2020 -16.7% -0.4% -25.1% -49.2% H1 2020 -8.8% +6.2% -7.7% -41.9% August 6, 2020 | Half-Year Report 2020 Page 23
Slide 24: Consumer – Europe
CONSUMER – EUROPE SALES H1 2019 SALES H1 2020 NOMINAL GROWTH ORGANIC GROWTH MILL. € MILL. € WESTERN EUROPE 1,294 1,116 -13.8% -14.3% EASTERN EUROPE 294 266 -9.4% -6.3% EUROPE 1,588 1,382 -13.0% -12.8% • SIGNIFICANT IMPACT FROM COVID-19 IN FRANCE, ITALY, SPAIN AND UK. • STRONG DECELERATION DUE TO LA
Slide 25: Consumer – Americas
CONSUMER – AMERICAS SALES H1 2019 SALES H1 2020 NOMINAL GROWTH ORGANIC GROWTH MILL. € MILL. € NORTH AMERICA 226 321 +42.0% -0.2% LATIN AMERICA 304 272 -10.6% +2.8% AMERICAS 530 593 +11.8% +1.5% • NORTH AMERICA RESILIENT WITH STRONG DERMA SALES. • BRAZIL & CHILE KEEPING UP GROWTH IN LATIN AMERICA. •
Slide 26: Consumer – Africa/Asia/Australia
CONSUMER – AFRICA/ASIA/AUSTRALIA SALES H1 2019 SALES H1 2020 NOMINAL GROWTH ORGANIC GROWTH MILL. € MILL. € AFRICA/ASIA/AUSTRALIA 1,028 859 -16.3% -14.4% • INDIA, TURKEY, INDONESIA, JAPAN WITH SIGNIFICANT SALES IMPACT. • LA PRAIRIE SALES AFFECTED BY LOCKDOWN SITUATION. • SWIFT RECOVERY IN CHINA AFTER
Slide 27: Gross Margin
GROSS MARGIN IN % OF CONSUMER SALES 61.8% +0.1% -1.4% 60.5% 0.0% H1 2019 PRICE MIX COST OF H1 2020 SALES, LOGISTICS August 6, 2020 | Half-Year Report 2020 & OTHERS Page 27
Slide 28: Consumer – EBIT
CONSUMER – EBIT IN % OF CONSUMER SALES, EXCL. SPECIAL FACTORS 15.5 15.9 15.3 15.1 13.3 H1 2016 H1 2017 H1 2018 H1 2019 H1 2020 August 6, 2020 | Half-Year Report 2020 Page 28
Slide 29: Consumer – Working Capital
CONSUMER – WORKING CAPITAL WORKING CAPITAL IN % OF CONSUMER SALES ON A 12-MONTHS ROLLING BASIS 9.9% 9.6% 9.5% FY 2018 H1 2019 H1 2020 August 6, 2020 | Half-Year Report 2020 Page 29
Slide 30: tesa – Growth
TESA – GROWTH ORGANIC GROWTH H1 2020 EBIT MARGIN H1 2020 DIRECT INDUSTRIES TRADE MARKETS TESA TOTAL TESA TOTAL -14.5% -3.4% -10.0% 15.6% AUTOMOTIVE CONSUMER & CRAFTSMEN ELECTRONICS GENERAL INDUSTRIAL MARKETS PRINT AND PAPER BUILDING SUPPLY August 6, 2020 | Half-Year Report 2020 Page 30
Slide 31: Outlook
OUTLOOK July was better than June, but uncertainty remains exceptionally high Investments in C.A.R.E.+ will be further increased Preparing for continued volatility ahead FY2020 sales growth in both business segments and on group level will be negative. Group EBIT margin is expected to be significant
Slide 32: Q&A
Q&A August 6, 2020 | Half-Year Report 2020 Page 32
Slide 33: Half-Year Report 2020
HALF-YEAR REPORT 2020 August 6th, 2020