McPherson's Limited · ASX:MCP
McPherson's — 11th Annual Rising Stars Microcap Conference 2017
34 slides from McPherson's's conference presentation, Jun 27, 2017
Slide 1: McPherson's (ASX MCP)
MCPHERSON’S (ASX MCP) Presented by Laurence McAllister (CEO)
Slide 2: McPherson's Rising Stars Microcap Conference
M MCPHERSON'S Est.1860 11# Annual Rising Stars Microcap Conference 27% June 2017 Laurence McAllister — Managing Director
Slide 3: A Balanced & Focussed Growth Journey!
A Balanced & Focussed Growth Journey!
Slide 4: Net Debt reduced from $92m to $41m
Net Debt reduced from $92m at 31 December 2015 to $41m at 31 December 2016. Normalised leverage ratio reduced from 3.1 times to 1.5 times. Corporate Bonds reduced from $60m to $25m. Buybacks to continue. Financial position has absorbed and adjusted to AUD/USD depreciation from $US1.10 to $US0.75.
Slide 5: Diversification through acquisitions, divestments and new agencies
Diversification achieved through acquisitions, divestments and new agencies Divestment McPherson’s Acquisition New Agency Printing Demerger (Fine Fragrances) New Agency HOUSEWARES Acquisition Division Acquisition remaining 49% divested Feb Aug Mar Jul Oct Mar Apr Jun Jul Aug Nov Mar May 2012 2012 20
Slide 6: A professional close for FY 2017
A professional close for FY 2017 2018 fiscal shape considerations, the ability to achieve & manage, the key drivers and the Risk’s & Opportunities of the plan A balanced view of Core BIG 6 brands & optimising our resources & investments in Health, Wellness & Beauty Passionate to develop our comprehe
Slide 7: Address & Deliver the Make Plan Imperatives
Address & Deliver the “Make Plan Imperatives” Drive Winning plans for Brand, Customer & Sales Execution Excellence Land Health, Wellness and Beauty Brand as our #1 PRIORITY & Deliver the Business Plan Accelerate Big 6 Core brand performance Execute the Supply chain / Kingsgrove EBIT Redesign Top 6 C
Slide 8: Business Management plan timeline 2017-2018
2017 2018 J J A S O N D J F M A M J J A S O N D Business Management 1. Business Management Scorecard Management Scorecard, BI & Consumer Insights Program Top Project Management Dashboard Dashboard Big 6 Core Brand Performance Project Big 6 Risk Mgt– RR, supplier constraints, currency, commod
Slide 9: Management structure
Laurence McAllister Managing Director Rebecca Wakefield Executive Assistant Brett Owers Lori Pirozzi Sammy David Smith Byron Mark Brady Paul Sarah Tully Donna Chan Mary Pearce Chan John Ceresa Stone Witheridge New Bus. National Business Supply Commercial HR Accounts & Marketing R& D MD GM Developmen
Slide 10: 32% of revenue
32% of revenue M MEPHERSON'S Est.1860 DRLEWINNS* Our #1 priority is to deliver quality growth on our top 5 power brands /1 ° ; ; |Akin}] Swisspers Lady Jayne SG
Slide 11: Health, Wellness and Beauty market
HEALTH WELLNESS BEAUTY $4.6 Bill, +15% CAGR $4.0 Bill, +3% CAGR HAPL 22% • High Growth Net Sales H,W& B Contribution 61% Agency • High Demand 17% • High Margins 11 Source: Industry Revenue Complimentary Medicines Australia 2015 (2017 Est), Cosmetics/Toiletry retailing IBISWorld 2017 Est
Slide 12: Dr. LeWinn's: The #1 Cosmecutical brand
12 • The #1 Cosmecutical brand • Experts in Anti-Ageing • Currently launching new prestige packaging • Passionate about addressing skin concerns for women of all ages • Increased R&D investment allows us to − Work with our global suppliers on continued leading edge innovation that delivers real resu
Slide 13: Modern & Prestigious Packaging Step-change
Modern & Prestigious Packaging Step-change
Slide 14: Introducing Eternal Youth
14 INTRODUCING ETERNAL YOUTH FOUR NEW PRODUCTS LAUNCHING MAY/JUNE 2017
Slide 15: A'kin Relaunch
Relaunch • One Global A'kin Haircare & Skincare Brand • New highly appealing natural, contemporary packaging • Innovator in Natural with pure, authentic, efficacious products such as – Coconut Water & Green Tea Hydration Range – Rosehip + Vitamin C – Natural Dry Shampoo (Bamboo) • Transform A’kin wi
Slide 16: NPD, Visual Identity and Creative
NPD, Visual Identity and Creative 16
Slide 17: Manicare distribution expansion
17 • Distribution expansion in supermarkets • Maintain loyalists whilst attracting younger consumers via Glam innovation & engagement • Glam growing at +23%* with >105k Facebook fans • Available to purchase on-line • Exciting innovations - high growth segs. • Catwalk trends, Celebrity endorsement, F
Slide 18: Brunch Lash
a 5 BRUNCH LASH
Slide 19: Lady Jayne brand growth
19 • Convert high brand awareness into strong growth through: – Distribution expansion in supermarkets and ecommerce • Contemporise Lady Jayne brand through packaging relaunch and differentiated innovation WIP
Slide 20: Lady Jayne Reinvention
LADY JAYNE REINVENTION NEW LOOK NEW LOOK PRO CURRENT PACKAGING (ESSENTIALS RANGE) RANGE
Slide 21: New Iconic Brand Packaging Identity
New Iconic Brand Packaging Identity
Slide 22: Increase commercial focus with top 6 customers
Increase commercial focus & execution capabilities by developing Strategic Joint Bus. Planning & in-store metrics across our top 6 customers M Pydiscisn| MCPHERSON'S Est.1860 TerryWhite Chemmart
Slide 23: 35% reduction in working capital over 2 years
23 Kingsgrove Warehouse - Total capacity 12,500 pallet spaces Jan 2015 - 200 spaces available 99% full – 1% space available ($43mil Stock holdings) Jan 2017 - 6000 spaces available – 48% capacity opportunity ($28mil Stock holding) 35% reduction in working capital over 2 years by Improving inventory
Slide 24: Export distribution partners by country
Country Partner Target / Sign Date Australia Renewed December 2016 Singapore WIP Qtr 2 2017 New Zealand Landed January 2017 Australia Renewed to April 18 Terminated current distributor Singapore and will transfer distribution to Landed January 17 MCP Expanding ranging with Australia; and increasing
Slide 25: 18% of revenue from agencies
18% of revenue from agencies 25
Slide 26: Agency brands: Hugo Boss, Pears
ars, ; X e\\ GUILTY ‘ Ly seve Nora H UG O BOSS BOOS S HUGO BOSS [ | 4 “ Get Closer. THE SCENT Pears * VV
Slide 27: Karen Murrell
karen.murrell.
Slide 28: Karen Murrell Natural Lipsticks
Karen Murrell Natural Lipsticks Starter Pout Pack - 6 units 3 unit Gift Set Keychain Gift Set Cosmetic Bag Gift Set
Slide 29: McPherson's German Engineering
M MCPHER SON'S Est.1860 GERMAN ENGINEERING FOR YOUR
Slide 30: Media investment over 3 million AUD
> 3 Mill AUD Of total media value Focus on Sport and News programs CHANNELS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC BIG BASH & V8 ( Cricket & Motor Sport) AFL (Football) NRL (Rugby) Business/Sports SUPER RUGBY (Rugby) Male 25-54 yr old V8 SUPER CARS (Motor Sport) FORMULA 1 RACING (Motor Spor
Slide 31: Introducing September 2017 Launch
INTRODUCING September 2017 Launch
Slide 32: An Example Of A New Approach: Potential Honey JV
An Example Of A New Approach — Potential Honey JV with Gather By! DRLEWINNS
Slide 33: Driving A'kin in the UK, EU and China
33 • Specialise in natural, good value – mid tier skincare and health brands • Working together to drive A’kin in the • 5 star Tmall TP store operator UK and EU • Secured the opening of Akin’s Official Tmall store. • A’kin has been positioned as a • Targeted purchases of $1m in Year 1 straightforwar
Slide 34: pRLewINNS —[ Akin | AEE — lacy Jayne ~—swisspers
pRLewINNS —[ Akin | AEE — lacy Jayne ~—swisspers
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