Slide 1: McPherson's - Shaw & Partners
For personal use only M MCPHERSON'S Est.1860 Shaw & Partners 30th May 2017 Laurence McAllister — Managing Director
Slide 2: A Balanced & Focussed Growth Journey!
For personal use only A Balanced & Focussed Growth Journey!
Slide 3: Net debt and leverage reduction
Net Debt reduced from $92m at 31 December 2015 to For personal use only $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
Slide 4: Diversification through acquisitions, divestments and new agencies
Diversification achieved through acquisitions, divestments and new agencies For personal use only Divestment McPherson’s Acquisition New Agency Printing Demerger (Fine Fragrances) Acquisition New Agency HOUSEWARES Acquisition Division remaining 49% divested Feb Aug Mar Jul Oct Mar Apr Jun Jul Aug No
Slide 5: Health Wellness Beauty
Health Wellness Beauty For personal use only HAPL 22% • High Growth Net Sales H,W& B Contribution 61% • High Demand Agency 17% • High Margins 5
Slide 6: Strategic priorities: Health, Wellness & Beauty first
• Our focus is crystal clear = The Health, Wellness & Beauty Branded stable is the #1 PRIORITY! For personal use only • Revamped team with a New Pulse Management Scorecard & Business Intelligence (BI) capability • Deliver balanced vol. & val. share growth across our MCP Health, Wellness & Beauty bus
Slide 7: 2017-2018 initiatives timeline
2017 2018 J J A S O N D J F M A M J J A S O N D For personal use only Business Management 1. Business Management Scorecard – The environment, volume + value share , availability, pricing Scorecard comprehension, category segments, competition Key customers & consumer engagement Engagement Top
Slide 8: Leadership team structure
For personal use only 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
Slide 9: 32% of revenue
For personal use only 32% of revenue
Slide 10: Health Wellness Beauty
Health Wellness Beauty For personal use only HAPL 22% • High Growth Net Sales H,W& B Contribution 61% • High Demand Agency 17% • High Margins 10
Slide 11: Dr. LeWinn's brand
11 For personal use only • The #1 Cosmecutical brand • Experts in Anti-Ageing • Currently launching new prestige packaging • We are 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 innov
Slide 12: Modern and Prestigious
Modern and Prestigious For personal use only
Slide 13: Introducing Eternal Youth
13 INTRODUCING ETERNAL YOUTH For personal use only FOUR NEW PRODUCTS LAUNCHING MAY 2017
Slide 14: A'kin relaunch
Relaunch One Global A'kin Haircare and Skincare For personal use only • 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 (Bamb
Slide 15: Natural Australian Skin & Hair Care
NATURAL AUSTRALIAN SKIN & HADR CARE
Slide 16: NPD, Visual Identity and Creative
NPD, Visual Identity and Creative 16 For personal use only
Slide 17: Manicare
17 • Distribution expansion in supermarkets • Maintain loyalists whilst attracting younger consumers via Glam innovation For personal use only & engagement • Glam growing at +23%* with 98k Facebook fans • Available to purchase on-line • Exciting innovations in high growth segments • Catwalk trends,
Slide 18: For personal use only
G “i - i 23:2N PARTY LASH i! aE se ee
Slide 19: Lady Jayne
19 • Convert high brand awareness For personal use only 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 For personal use only NEW LOOK NEW LOOK PRO CURRENT PACKAGING (ESSENTIALS RANGE) RANGE
Slide 21: Lady Jayne new essentials brush packaging
LADY JAYNE NEW ESSENTIALS BRUSH PACKAGING- IMPROVED AISLE NAVIGATION INTEGRATING SHOPPER NEEDS For personal use only Benefit Driven descriptor (Problem/Solution) Brush Rotation Bristle and Benefit Focus
Slide 22: New Iconic Brand Packaging Identity
New Iconic Brand Packaging Identity For personal use only
Slide 23: Strategic joint business planning with top 6 customers
Increase commercial focus & execution around our capabilities by developing Strategic Joint Bus. Blanning & in-store metrics across our top 6 customers = LD Woolworths >»
Slide 24: Key initiatives (New Zealand)
24 For personal use only • Key initiatives being: – Continued focus on cost efficiencies and shared synergies with the Australian business. – Securing agency business with target revenue of $1m or greater i.e. Evolu – Driving our core business through collaboration with our key customers i.e. Green
Slide 25: Kingsgrove warehouse efficiency
25 For personal use only 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 b
Slide 26: Agency partners and renewals
Country Partner Target / Sign Date For personal use only Australia Renewed December 2016 Singapore WIP Qtr 2 2017 New Zealand January 2017 Australia Renewed Feb 17 to April 18 Terminated current distributor Singapore and will transfer distribution to January 17 MCP Expanding ranging with Australia;
Slide 27: 18% of revenue
27 For personal use only 18% of revenue
Slide 28: Gucci fragrance agency
ay GUCCI Get Closer. » THE SCENT FOR HER For person
Slide 29: For personal use only
For personal use only
Slide 30: Karen Murrell global performance
Global Performance 1 Karen Murrell lipstick sold every 9.6 seconds For personal use only 9000 lipsticks sold every day $44M in annual RSV Majority of Karen Murrell Lipsticks are sold through the China market Recent Mintel research shows that lip colour remains Current Global Distribution the fastest
Slide 31: Gifting
Gifting Starter Pout Pack - 6 units 3 unit Gift Set For personal use only Keychain Gift Set Cosmetic Bag Gift Set
Slide 32: German Engineering for Your Hair
For personal use only M MCPHERSON'S Est.1860 GERMAN ENGINEERING FOR YOUR
Slide 33: Alpecin distribution
Alpecin is ranged in Woolworths (1 Sku), Chemist Warehouse & Priceline 3 sku’s, Independent Pharmacy (mainly via Symbion) For personal use only McPherson’s take over Grocery distribution from May and Pharmacy Channel distribution from July. Key targets now : presentation to Metcash and Coles, Range
Slide 34: Media plan
> 3 Mill AUD Of total media value Focus on Sport and News programs For personal use only 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) FORMUL
Slide 35: Introducing - September 2017 Launch
INTRODUCING For personal use only September 2017 Launch
Slide 36: Potential Honey JV with Gather By
An Example Of A New Approach — Potential Honey JV with Gather By! pgLewinns —- [Akin AEE tay Jayne — swisspers
Slide 37: Export and international partners
37 For personal use only • 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
Slide 38: Key priorities ahead
• Deliver the FY 2017 EBIT & key metrics performance For personal use only • Build BI & Scorecard capabilities to run & build course correction plans • Lock & load the HR plan – Performance Rev’s, Succession planning & Engagement Survey • Complete the SLT new shape across New Bus / Marketing & Expor
Slide 39: For personal use only
pRLewINNS ——[ Akin | AEE stacy jayne — swisspers