Orkla Asa · OSL:ORK
Orkla Asa — Investor Day (2013)
42 slides from Orkla Asa's investor day presentation, 2013
Slide 1: Continuing to grow our local market leadership
Continuing to grow our local market leadership Stig Ebert Nilssen EVP & CEO Orkla Home & Personal
Slide 2: Continuing to grow our local market leadership
Continuing to grow our local market leadership • #1 positions in the Nordic region • Local winning concepts • Strong platform for future growth • Nutrilett: our fast growing slimming brand 95
Slide 3: Continuing to grow our local market leadership
Continuing to grow our local market leadership • #1 positions in the Nordic region • Local winning concepts • Strong platform for future growth • Nutrilett: our fast growing slimming brand 96
Slide 4: #1 positions in all product categories
#1 positions in all product categories • Stable markets • High margins • Strong brand loyalty • Strong Nordic purchasing power Personal Care Home Care Health Textiles 97
Slide 5: Strong Nordic platforms for future growth
Strong Nordic platforms for future growth Personal Care Home Care Health Textiles Sales • Grocery • Grocery • Grocery • Grocery channels: • Pharmacy • B2B • Pharmacy • Home improvement • Health shops retailers • DTC • Convenience • Sport / Fitness • B2B Home markets: Companies: 98
Slide 6: Large categories with sales mainly in the Nordic market
Large categories with sales mainly in the Nordic market Revenues 2012, proforma incl. Jordan: NOK 4,720 million Geographical sales split: Category sales split: Personal Care Other 14% 20% Finland Norway 4% Home Care Denmark 7% 41% 9% Sweden 66% 28% Health 11% Textiles 99 Note: Reported revenues in 2
Slide 7: #1 local brands with long heritage
#1 local brands with long heritage – going back 150 years Jordan (1837) Möllers (1854) Dr. Greve (1899) SanaSol (1933) Blenda (1935) Lano (1936) Zalo (1952) Pierre Robert (1956) Omo (1961) Sun (1966) Jif (1977) Gerimax (1981) Nutrilett (1989) Maxim (1991) Define (2001) 100
Slide 8: Unique home and personal care #1 positions in Norway
Unique home and personal care #1 positions in Norway Market share Position Orkla vs Competition Home Care Home Care 71% #1 Fabrics cleaner 81% #1 Orkla, Lilleborg (71%) Colgate Palmolive (5%) Cleaners 62% #1 P&G (3%) Dishwash 79% #1 Unilever (3%) Fabrics cond. 62% #1 Private Label (8%) Other (10%) P
Slide 9: #1 Nordic market positions in House Care
#1 Nordic market positions in House Care Market share Position Orkla vs Competition House Care Nordics Nordics 55% #1 #1 Orkla, Jordan (55%) Norway 75% Flügger / Stiwex (10%) Sweden 48% #1 Alfort & Cronholm (7%) Denmark 62% #1 QPT (5%) Sokeva (5%) Finland 33% #1 Private Label (11%) Other (7%) 102 So
Slide 10: #1 market positions in food supplements
#1 market positions in food supplements Market share Position Orkla vs Competition Nordics Nordics 57% #1 Norway 77% #1 Orkla, Axellus (57%) Midsona (16%) Denmark 49% #1 Cederroth (16%) Sweden 35% #1 Private Label (1%) #1 Other (10%) Finland 29% Source: Grocery markets AC Nielsen per July for Denmar
Slide 11: Strong grocery positions in textiles
Strong grocery positions in textiles Market shares Norway Pierre Robert Group (78%) Springhill Textile (6%) Kari Traa / Active Brands (5%) Private Label (6%) Other (5%) Market shares Sweden Orkla, Pierre Robert (29%) Springhill Textiles (16%) Triumph (1%) ICA, My wear (PL) (42%) Other private labels
Slide 12: Local brands based on local insight are winners
Local brands based on local insight are winners Local brands • Better local consumer understanding Local insight • Better trade and category understanding • Flexible local value chain Local scale • Dominant in sales and advertising 105
Slide 13: Continuing to grow our local market leadership
Continuing to grow our local market leadership • #1 positions in the Nordic region • Local winning concepts • Strong platform for future growth • Nutrilett: our fast growing slimming brand 106
Slide 14: Technology driven local innovation generating category growth
Technology driven local innovation generating category growth Insight targeted towards convenience trend – self dissolving capsules with highly concentrated liquid detergent 11 10 9 8 7 6 Market share 5 4 3 2 1 0 1 3 5 7 9 11 13 15 17 Months after release 107 Source: AC Nielsen, 22.04.12-11.08.13, T
Slide 15: Strong market leadership for Define driven by innovations
Strong market leadership for Define driven by innovations based on local insight 300 900 #1 Grocery sales value Hair Care category (NOK million) 800 Grocery sales value Define (NOK million) 250 700 200 600 500 150 400 100 300 200 50 100 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 16: Increase grocery penetration by expanding the Textile category
Increase grocery penetration by expanding the Textile category 2011 Revenues in Norway (NOK million): 539 2013 2012 2010 516 495 2009 448 2008 391 2007 316 2006 2012 7,9 % 16,3 % Textiles in grocery 92,1 % 83,7% Textiles other channels 109 Source: GFK Total market Norway 2006 - 2012
Slide 17: Revenue management - Growing a mature category
Revenue management - Growing a mature category by clearly differentiating price and quality offers • 16% sales growth from 2009 – 2013 – More than doubling sales for the Ultimate product Revenues interior brushes (NOK million) High 80 70 Price 60 Index Ultimate 50 130 40 Price 30 Perfect Price 20 In
Slide 18: Möller's cod liver oil – continuously upgrading an iconic brand
Möller’s cod liver oil – continously upgrading an iconic brand The leading health brand for 160 years Revenues (NOK million) 350 300 250 200 150 100 2007 2008 2009 2010 2011 2012 E 2013 111
Slide 19: Tailor made local trade and consumer campaigns driving demand
Tailor made local trade and consumer campaigns driving demand 112
Slide 20: Continuing to grow our local market leadership
Continuing to grow our local market leadership • #1 positions in the Nordic region • Local winning concepts • Strong platform for future growth • Nutrilett: our fast growing slimming brand 113
Slide 21: Significant growth possibilities
Significant growth possibilities Recent performance: Financial Target 2016: Rolling 12 months operating revenues (NOK million) 5,000 4,500 4,000 Organic growth 3,500 3-5 % 3,000 Q4 Q4 Q4 Q4 Q2 2008 2009 2010 2011 2013 Organic sales growth1 2008 2009 2010 2011 2012 Average 6.8% -1.4% 4.8% 1.1% 1.0% 2
Slide 22: Sustainable profitability
Sustainable profitability Recent performance: Financial Target 2016: Rolling 12 months adjusted EBIT1 (NOK million) 800 700 600 500 400 EBIT margin 31.12.08 31.12.09 31.12.10 31.12.11 30.6.13 > 17.5 % EBIT margin (adjusted)1 19.4% 19.5% 17.4% 16.7% 17.4% 17.3% 18.1%2 18.4%2 16.0%2 2008 2009 2010 201
Slide 23: Well positioned for future growth
Well positioned for future growth • Health, well being and beauty a sustainable macro trend • Aging population wanting to stay young longer • Nordic citizens in general having high disposable income and purchasing power • High investments in home improvements • Nordic consumer seeking premium produc
Slide 24: Our future priorities are:
Our future priorities are: • Continue growing organically • Expand into new markets and sales channels • Further improve efficiencies and operational excellence 117
Slide 25: Continue growing organically
Continue growing organically • Grow core business through innovation – more of the best • Improve sharing of best practices within Orkla and Home & Personal 118
Slide 26: Wide expansion possibilities
Wide expansion possibilities • Existing products into new markets • Structural growth Category presence per geography Category Home care Personal care Dietary supplements Textiles (grocery) Painting tools STRONG #1, clearly larger than #2 GOOD #1 or #2, same size as #1 or #2 In the market Not in the
Slide 27: Wide expansion possibilities
Wide expansion possibilities • Existing products into new sales channels Category presence per sales channel Home Web Health Conv- Sport/ Category Grocery Pharmacy B2B impr. shops shops enience Fitness retailers Home care Personal care Health Textiles Full presence Present Partly present Not present
Slide 28: Further improve efficiencies and operational excellence
Further improve efficiencies and operational excellence • Complete synergy realization from acquisitions in 2012 • Continue product portfolio streamlining • Increase cross category / country cooperation and synergies • Further leverage on existing cost base – organic and structural • Execute operati
Slide 29: Continuing to grow our local market leadership
Continuing to grow our local market leadership • #1 positions in the Nordic region • Local winning concepts • Strong platform for future growth • Nutrilett: our fast growing slimming brand 122
Slide 30: Our fast growing slimming brand
Our fast growing slimming brand Tine Hammernes Leopold Commercial Director & CEO Home markets Axellus Group
Slide 31: Nutrilett is a long running success story
Nutrilett is a long running success story Organic Revenues MNOK CAGR 21% 350 300 250 200 150 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 ORKLA aquired CollettPharma, of wich Nutrilett was a brand in 2005. Organic CAGR for Nutrilett in the years following is 21%.
Slide 32: Effective products based on science
Effective products based on science The effect of Nutrilett powder diets has been proven, documented, ocumented, and published in 20 clinical studies.
Slide 33: Superior taste wins loyal consumers
Superior taste wins loyal consumers Benchmark for taste: Consumers prefer Nutrilett bars over competition Finland 62% of Finnish bar users prefer Nutrilett Norway 63% of Norwegian bar users prefer Nutrilett Sweden 46% of Swedish bar users prefer Nutrilett Research conducted by Ipsos MMI as, March 20
Slide 34: Continuous innovation increases value and volume
Continous innovation increases value and volume Superior products Wide consumer group High frequency
Slide 35: Competitive edge in continuous improvements
Competitive edge in continuous improvements
Slide 36: Profitable combination of scale and local presence
Profitable combination of scale and local presence Synergy in brand Economy of scale Strong local sales building and insight sourcing and marketing teams It works Sweden Norway Finland Helps you Quick and reach your convenient goals weightloss Denmark Poland The weight loss expert
Slide 37: Acting fast on local consumer trends
Acting fast on local consumer trends Adapted to special Adapted to unique Adapted to new Danish Polish Swedish taste preference consumer needs consumer trends
Slide 38: Local scale drives large volumes
Local scale drives large volumes
Slide 39: Local scale drives large volumes
Local scale drives large volumes
Slide 40: Strong market leadership across the Nordics
Strong market leadership across the Nordics Revenue split per market Market Market shares Norway Norway 78%* #1 Sweden Denmark Sweden 51%* #1 Finland Poland Finland 39%** #1 Denmark 20%** #2 Launced in Denmark * YTD feb 2013 ** 2012 figures and Poland in 2012
Slide 41: Orkla's competitive advantage secures future growth for Nutrilett
Orkla’s competitive advantage secures future growth for Nutrilett Organic Revenues MNOK CAGR 21% 350 300 • #1 in the Nordics 250 Strong brand • High growth over 13 years 200 • Value created from operating rapid change 150 Local insight based on local trends 100 • Strong trade relations 50 Local scal
Slide 42: Well positioned for future growth
Well positioned for future growth • #1 positions in attractive Nordic markets • Track record demonstrates ability to grow further develop strong local capabilities and culture • Utilize synergies to improve profitability • Several attractive growth opportunities for the longer term – new markets and