Beiersdorf Ag · XETR:BEI
Beiersdorf — FY2016 Earnings Presentation
37 slides from Beiersdorf's earnings presentation, Mar 8, 2017
Slide 1: Financial Analyst Meeting 2017
FINANCIAL ANALYST MEETING 2017 8 March 2017
Slide 2: Disclaimer
DISCLAIMER 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 uncerta
Slide 3: Agenda
AGENDA Full-Year Results 2016 – Stefan F. Heidenreich, CEO Strategy Update Financials – Jesper Andersen, CFO Outlook 2017 Q&A Financial Analyst Meeting 2017 3/8/2017 | Page 3
Slide 4: Group Key Figures
GROUP KEY FIGURES Jan. – Dec. 2015 Jan. – Dec. 2016 Change nominal organic mill. € mill. € in % in % Sales 6,686 6,752 1.0 3.2 EBIT 962 1,015 Profit after Tax 671 727 Earnings per Share in € 2.91 3.13 EBIT* 962 1,015 Profit after Tax* 671 727 EBIT Margin* 14.4% 15.0% Profit after Tax Margin* 10.0% 1
Slide 5: Consumer Sales Growth
CONSUMER SALES GROWTH Net Sales Growth in % vs. PY 4.4 4.3 4.0 4.1 3.8 3.6 3.6 3.6 3.3 3.1 2.9 FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 * Consumer organic sales growth if sales in Argentina had been calculated at constant FX rates Financial Analyst Meeting 2017 3/8/2017 | Page 5
Slide 6: Consumer EBIT
CONSUMER EBIT EBIT In % of NS, Consumer, excl. special factors, FY 14.8 13.9 13.0 12.5 12.0 11.4 2011 2012 2013 2014 2015 2016 Financial Analyst Meeting 2017 3/8/2017 | Page 6
Slide 7: Consumer Sales per Region
CONSUMER SALES PER REGION Jan. – Dec. 2015 Jan. – Dec. 2016 Change nominal organic mill. € mill. € in % in % Europe 2,816 2,801 -0.6 2.0 Western Europe 2,281 2,262 -0.8 1.0 Eastern Europe 535 539 0.6 6.6 Americas 1,076 1,078 0.2 2.9 North America 426 432 1.4 1.6 Latin America 650 646 -0.7 3.7 Africa
Slide 8: tesa Key Figures
TESA KEY FIGURES Jan. – Dec. 2015 Jan. – Dec. 2016 Change nominal like-for-like mill. € mill. € in % in % Sales 1,140 1,146 0.6 2.6 EBIT* 191 186 EBIT Margin* 16.8% 16.2% * Excluding special factors Financial Analyst Meeting 2017 3/8/2017 | Page 8
Slide 9: Blue Focus 2012-2016
BLUE FOCUS 2012-2016 Financial Analyst Meeting 2017 3/8/2017 | Page 9
Slide 10: Blue Agenda
BLUE AGENDA Financial Analyst Meeting 2017 3/8/2017 | Page 10
Slide 11: Blue Agenda Pillars
BLUE AGENDA PILLARS BRAND INNOVATION FOOTPRINT EFFICIENCY PEOPLE 52% 48% Financial Analyst Meeting 2017 3/8/2017 | Page 11
Slide 12: Blue Agenda – Brand
BLUE AGENDA – BRAND SIGNIFICANT MOST TRUSTED GLOBAL IMPROVEMENT IN SKIN CARE BRAND BRAND HEALTH Financial Analyst Meeting 2017 3/8/2017 | Page 12
Slide 13: Blue Agenda – Innovation
BLUE AGENDA – INNOVATION BREAKTHROUGH STRONG INNOVATIONS PIPELINE FOR OVER THE PAST YEARS 2017 & 2018 Financial Analyst Meeting 2017 3/8/2017 | Page 13
Slide 14: Blue Agenda – Footprint
BLUE AGENDA – FOOTPRINT 46% 48% 54% 52% Eastern Europe, Latin America, A/A/A Western Europe, North America SUCCESSFULLY WHITE SPACE FOR GROWING IN EMERGING FURTHER EXPANSION MARKETS Financial Analyst Meeting 2017 3/8/2017 | Page 14
Slide 15: Blue Agenda – Efficiency
BLUE AGENDA – EFFICIENCY WORKING CAPITAL In % of NS 14.6 13.6 JESPER HARALD ANDERSEN EMBERGER 11.0 CFO (5/2015) CSCO (6/2015) Prior 20 years Prior 5 years with Colgate- with Unilever Palmolive and 13 years with Mars 2014 2015 2016 EFFICIENCY AS CORE INCREASING SPEED AND FUEL FOR GROWTH AGILI
Slide 16: Blue Agenda – People
BLUE AGENDA – PEOPLE FASTEST ENGAGEMENT 100% COMMITTED TO INCREASE IN CONSUMER CORE VALUES INDUSTRY Financial Analyst Meeting 2017 3/8/2017 | Page 16
Slide 17: Blue Agenda – Performance
BLUE AGENDA – PERFORMANCE GROWTH PROFITABILITY CAGR 4.7% 14.8 13.9 12.0 12.5 13.0 11.4 2011 2016 2011 2012 2013 2014 2015 2016 SHARE PRICE COMPANY VALUE CASH 20.311 Beiersdorf: +94% 10.466 3.7 bEUR DAX: 2.2 bEUR +66% 2011 2016 2011 2016 2011 2016 Financial Analyst Meeting 2017 3/8/2017 | Page 17
Slide 18: Into the Future 2017+
INTO THE FUTURE 2017+ Financial Analyst Meeting 2017 3/8/2017 | Page 18
Slide 19: Our Future Is Growth
OUR FUTURE IS GROWTH BREAKTHROUGH GLOBAL LEADER MORE LOCAL DIGITAL NEW GROWTH INNOVATION MEN FOOTPRINT ACCELERATION PLATFORMS Financial Analyst Meeting 2017 3/8/2017 | Page 19
Slide 20: Future – Breakthrough Innovation
FUTURE – BREAKTHROUGH INNOVATION FIRST EVER SUNSCREEN TO PROTECT CLOTHES >40% OF CONSUMERS ANNOYED BY UV FILTER STAINS DISRUPTION OF SUN CARE CATEGORY Financial Analyst Meeting 2017 3/8/2017 | Page 20
Slide 21: Future – Global Leader Men
FUTURE – GLOBAL LEADER MEN GLOBAL MARKET SHARE MEN In % 11.2 9.8 5.4 LARGE PART OF NIVEA LONG-TERM BUSINESS TODAY WITH PARTNERSHIP WITH MEN, GROWING QUICKLY WORLD SOCCER CLUBS Source: Euromonitor, Categories Men's Skin Care, Men's Pre-Shave, Men's Post-Shave, Men's Bath and Shower Financial Analyst
Slide 22: Future – More Local Footprint
FUTURE – MORE LOCAL FOOTPRINT ITATIBA FIRST EVER AEROSOL STRENGTHEN FOOTPRINT STRONG #2 POSITION IN PLANT OUTSIDE EUROPE IN STRATEGIC REGION BRAZIL AND ARGENTINA Financial Analyst Meeting 2017 3/8/2017 | Page 22
Slide 23: Future – Digital Acceleration
FUTURE – DIGITAL ACCELERATION DIGITAL MARKETING Digital IQ: 145 E-COMMERCE 20% NEW CDO NEW CDO CAPABILITIES Financial Analyst Meeting 2017 3/8/2017 | Page 23
Slide 24: Future – Growth Platforms
FUTURE – GROWTH PLATFORMS VINCENT WARNERY New Board Member Prior Senior Vice President Global Consumer Health Care at Sanofi Before 15 years with L‘Oreal in Consumer and Pharma division Financial Analyst Meeting 2017 3/8/2017 | Page 24
Slide 25: Agenda
AGENDA Full-Year Results 2016 – Stefan F. Heidenreich, CEO Strategy Update Financials – Jesper Andersen, CFO Outlook 2017 Q&A Financial Analyst Meeting 2017 3/8/2017 | Page 25
Slide 26: Efficiency to Fuel Growth
EFFICIENCY TO FUEL GROWTH is our priority GROWTH provides the fuel for growth Financial Analyst Meeting 2017 3/8/2017 | Page 26
Slide 27: Financial Framework
FINANCIAL FRAMEWORK ROLE LEVERS • Quality of sales SALES Profitable • Competitive pricing GROWTH growth • Promotion effectiveness • Mix and assortment Source of MARGINS • Cost efficiency funds • Pricing • Competitive media spend MARKETING Invest & • Digital investment BUDGET Build Brands • Efficient
Slide 28: Efficiency Program
EFFICIENCY PROGRAM Consumer Segment ACHIEVEMENT DASHBOARD GROSS SAVINGS MARGIN LOGISTICS MARGIN 100mEUR +60bpt PROCUREMENT GENERAL EXPENSE ASSORTMENT WORKING CAPITAL ASSORTMENT WOC >10% NS/SKU -260bpt Financial Analyst Meeting 2017 3/8/2017 | Page 28
Slide 29: Group Gross Margin
GROUP GROSS MARGIN +0.9% -0.7% 58.9% 58.3% +0.4% Gross Margin Price Costs & FX Gross Margin FY 2015 Logistics FY 2016 Our efficiency program is driving the gross margin expansion. Financial Analyst Meeting 2017 3/8/2017 | Page 29
Slide 30: Consumer Working Capital
CONSUMER WORKING CAPITAL 14.6 14.4 14.1 13.6 13.0 12.3 11.5 11.0 FY 2014 H1 2015 9M 2015 FY 2015 Q1 2016 H1 2016 9M 2016 FY 2016 Working capital in % of Consumer sales on a 12-month rolling basis Financial Analyst Meeting 2017 3/8/2017 | Page 30
Slide 31: Consumer EBIT
CONSUMER EBIT EBIT In % of NS, Consumer, excl. special factors, FY 14.8 13.9 13.0 12.5 12.0 11.4 2011 2012 2013 2014 2015 2016 Financial Analyst Meeting 2017 3/8/2017 | Page 31
Slide 32: Group Profit After Tax
GROUP PROFIT AFTER TAX EBIT Profit after Tax +60bps +80bps 15.0% 10.8% 14.4% 10.0% 2015 2016 2015 2016 Optimization of net interest and improving tax rate by 60bps to 30.1%. Financial Analyst Meeting 2017 3/8/2017 | Page 32
Slide 33: Group Net Liquidity
GROUP NET LIQUIDITY (in mill. €) 3,708 3,036 2,529 2,527 2,436 2,222 2011 2012 2013 2014 2015 2016 Financial Analyst Meeting 2017 3/8/2017 | Page 33
Slide 34: Guidance 2017
GUIDANCE 2017 Consumer Sales growth 3-4% Total Group EBIT margin slightly above previous year Sales growth 3-4% EBIT margin slightly above previous year tesa PAT margin slightly above Sales growth 3-4% previous year EBIT margin slightly below previous year 2016 data for reference (excl
Slide 35: Questions and Answers
FINANCIAL ANALYST MEETING 2017 Questions and Answers Financial Analyst Meeting 2017 3/8/2017 | Page 35
Slide 36: Investor Relations Contact
INVESTOR RELATIONS CONTACT Beiersdorf Website www.Beiersdorf.com IR-Hotline Tel: +49 (0) 40 4909 5000 Fax: +49 (0) 40 4909 18 5000 Email: Investor.Relations@Beiersdorf.com Financial Analyst Meeting 2017 3/8/2017 | Page 36
Slide 37: Financial Analyst Meeting 2017
FINANCIAL ANALYST MEETING 2017 8 March 2017