Beiersdorf Ag · XETR:BEI
Beiersdorf — Investor Day (February 2019)
67 slides from Beiersdorf's investor day presentation, Feb 27, 2019
Slide 1: Financial Analyst Meeting 2019
FINANCIAL ANALYST MEETING 2019 FEBRUARY 27TH, 2019
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 FINANCIAL RESULTS 2018 STRATEGY UPDATE FINANCIAL AMBITIONS SUMMARY Q&A February 27, 2019 | Financial Analyst Meeting 2019 Page 3
Slide 4: Agenda
AGENDA FINANCIAL RESULTS 2018 STRATEGY UPDATE FINANCIAL AMBITIONS SUMMARY Q&A February 27, 2019 | Financial Analyst Meeting 2019 Page 4
Slide 5: Financial Results 2018
FINANCIAL RESULTS 2018 GROWTH AHEAD OF THE MARKET 2018 CHALLENGING FX, PRICING & INPUT COST ENVIRONMENT February 27, 2019 | Financial Analyst Meeting 2019 Page 5
Slide 6: Group – Key Figures
GROUP – KEY FIGURES JAN. – DEC. 2017 JAN. – DEC. 2018 CHANGE MILL. € MILL. € NOMINAL ORGANIC SALES 7,056 7,233 +2.5% +5.4% EBIT 1,088 1,097 +0.8% PROFIT AFTER TAX 689 745 +8.1% EARNINGS PER SHARE IN € 2.96 3.21 +8.4% EBIT* 1,088 1,113 +2.3% PROFIT AFTER TAX* 689 756 +9.6% EBIT MARGIN* 15.4% 15.4% FL
Slide 7: Group – Segments
GROUP – SEGMENTS JAN. – DEC. 2017 JAN. – DEC. 2018 CHANGE GROUP MILL. € MILL. € NOMINAL ORGANIC SALES 7,056 7,233 +2.5% +5.4% EBIT* 1,088 1,113 +2.3% EBIT MARGIN* 15.4% 15.4% FLAT CONSUMER SALES 5,799 5,890 +1.6% +5.0% EBIT* 881 903 +2.5% EBIT MARGIN* 15.2% 15.3% +10BPS TESA SALES 1,257 1,343 +6.8%
Slide 8: Consumer – Growth
CONSUMER – GROWTH ORGANIC SALES GROWTH IN % +8.5* +6.6* +5.9* +4.9* +4.5* +4.1* +3.9* +8.0 +6.1 +4.7 +5.0 +3.3 +2.9 +3.3 FY 2016 FY 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 * Consumer organic sales growth if sales in Argentina had been calculated at constant FX rates February 27, 2019 | Financia
Slide 9: Consumer – Growth
CONSUMER – GROWTH NIVEA DERMA HEALTHCARE LA PRAIRIE FY 2018 +2.8% +5.9% -1.8% +38.5% Q4 2018 +3.2% +4.6% -3.1% +14.3% February 27, 2019 | Financial Analyst Meeting 2019 Page 9
Slide 10: Consumer – Europe
CONSUMER – EUROPE JAN. – DEC. 2018 CHANGE MILL. € FY 2018 NOMINAL FY 2018 ORGANIC Q4 2018 ORGANIC WESTERN EUROPE 2,354 +3.2% +3.9% +1.6% EASTERN EUROPE 587 +1.1% +5.3% +6.5% EUROPE 2,941 +2.8% +4.2% +2.7% • STRONG GROWTH OF LA PRAIRIE • EASTERN EUROPE CONTINUES SOLID, BROAD-BASED PERFORMANCE • SIGNI
Slide 11: Consumer – Americas
CONSUMER – AMERICAS JAN. – DEC. 2018 CHANGE MILL. € FY 2018 NOMINAL FY 2018 ORGANIC Q4 2018 ORGANIC NORTH AMERICA 441 +3.4% +7.3% +5.3% LATIN AMERICA 610 -11.7% -2.8% -3.2% AMERICAS 1,051 -5.9% +1.1% 0.0% • ARGENTINA ACCOUNTING NEGATIVELY AFFECTED REPORTED ORGANIC GROWTH, IMPACT LARGER IN H2 THAN IN
Slide 12: Consumer – Africa/Asia/Australia
CONSUMER – AFRICA/ASIA/AUSTRALIA JAN. – DEC. 2018 CHANGE MILL. € FY 2018 NOMINAL FY 2018 ORGANIC Q4 2018 ORGANIC A/A/A 1,898 +4.2% +8.8% +6.3% • STRONG BROAD-BASED GROWTH LED BY AFRICA, INDIA AND INDONESIA • CHINA HAIR CARE REMAINS DIFFICULT • LA PRAIRIE MADE A POSITIVE CONTRIBUTION February 27, 201
Slide 13: Consumer – EBIT
CONSUMER – EBIT IN % OF CONSUMER SALES, EXCL. SPECIAL FACTORS 15.2% 15.3% 14.8% 13.9% 13.0% 2014 2015 2016 2017 2018 February 27, 2019 | Financial Analyst Meeting 2019 Page 13
Slide 14: Gross Margin – Strong Headwinds
GROSS MARGIN – STRONG HEADWINDS IN % OF CONSUMER SALES 61.3% 0.0% -0.3% +0.3% -0.9% 60.4% 2017 PRICE MIX COST OF FX 2018 SALES, LOGISTICS February 27, 2019 | Financial Analyst Meeting 2019 & OTHERS Page 14
Slide 15: WOC – 2018 Normalized Post Cyber
WOC – 2018 NORMALIZED POST CYBER WORKING CAPITAL IN % OF CONSUMER SALES ON A 12-MONTH ROLLING BASIS 14.6% 13.6% 11.0% 9.9% 9.2% 2014 2015 2016 2017 2018 February 27, 2019 | Financial Analyst Meeting 2019 Page 15
Slide 16: tesa – Key Figures
TESA – KEY FIGURES JAN. – DEC. 2017 JAN. – DEC. 2018 CHANGE MILL. € MILL. € NOMINAL ORGANIC SALES 1,257 1,343 +6.8% +6.8% EBIT 207 210 +1.3% EBIT MARGIN 16.5% 15.7% -80BPS February 27, 2019 | Financial Analyst Meeting 2019 Page 16
Slide 17: Liquidity – M&A, WOC, Capex
LIQUIDITY – M&A, WOC, CAPEX GROUP NET LIQUIDITY IN MILLION EUROS AT YEAR END 4,402 4,189 3,708 3,036 2,527 2014 2015 2016 2017 2018 February 27, 2019 | Financial Analyst Meeting 2019 Page 17
Slide 18: PAT – Significantly Improved
PAT – SIGNIFICANTLY IMPROVED IN % OF GROUP SALES, EXCL. SPECIAL FACTORS 10.8% 10.5% 10.0% 9.8% 9.2% 2014 2015 2016 2017 2018 February 27, 2019 | Financial Analyst Meeting 2019 Page 18
Slide 19: Guidance 2019
GUIDANCE 2019 CONSUMER • SALES GROWTH 3-5% TOTAL GROUP • EBIT MARGIN 14-14.5% • SALES GROWTH 3-5% • EBIT MARGIN AROUND 14.5% TESA • PAT MARGIN SLIGHTLY BELOW • SALES GROWTH 3-4% PREVIOUS YEAR • EBIT MARGIN SLIGHTLY BELOW PREVIOUS YEAR 2018 DATA FOR REFERENCE (EXCLUDING SPECIAL FACTORS): • CONSUMER E
Slide 20: Agenda
AGENDA FINANCIAL RESULTS 2018 STRATEGY UPDATE FINANCIAL AMBITIONS SUMMARY Q&A February 27, 2019 | Financial Analyst Meeting 2019 Page 20
Slide 21: Beiersdorf
BEIERSDORF CONSUMER SKIN CARE TESA 5,890 MILL. €/ 81% 1,343 MILL. €/ 19% February 27, 2019 | Financial Analyst Meeting 2019 Page 21
Slide 22: Today
TODAY DISRUPTION OPPORTUNITY NEED TO ACT DIGITAL TECHNOLOGIES SKIN CARE IS AN EUROPEAN MASS EMPOWERING ATTRACTIVE MARKET MARKET BUSINESS CONSUMERS UNDER PRESSURE BEIERSDORF IS VERY PERSONALIZATION WELL POSITIONED TO UNDERWEIGHT CAPTURE THE PRESENCE IN GROWTH DYNAMIC GROWTH OF OPPORTUNITY MARKETS SMA
Slide 23: Future Market Growth
GROWTH OPPORTUNITY LATAM, AFRICA, EUROPE ASIA NEAR EAST Future Market Growth Share of Net Sales / 49% 54% 21% 21% 22% 10% Future Growth Future Growth Future Growth STRENGTHEN DRIVE CATEGORY GROWTH CAPTURE GROWTH POTENTIAL MARKET LEADERSHIP & MARKET ENTRY Source: Beiersdorf Net Sales, Euromonitor, Fo
Slide 24: Our Ability to Capture the Growth Potential
OUR ABILITY TO CAPTURE THE GROWTH POTENTIAL GLOBAL, ICONIC BRANDS FOCUS ON SKIN CARE INNOVATION KNOW HOW PEOPLE LONG TERM PERSPECTIVE STRONG BALANCE SHEET February 27, 2019 | Financial Analyst Meeting 2019 Page 24
Slide 25: Our Commitment
OUR COMMITMENT COMPETITIVE SUSTAINABLE GROWTH OUTPERFORM THE MARKET CREATE CONSUMER VALUE SUSTAINABLE PROFITABILITY February 27, 2019 | Financial Analyst Meeting 2019 Page 25
Slide 26: 5 Strategic Priorities
5 STRATEGIC PRIORITIES DRIVE GROWTH ACCELERATE WIN STEP UP IN WHITE SPOTS WITH SKIN CARE DIGITALIZATION INCREASE PRODUCTIVITY CREATE VALUE FOR SOCIETY February 27, 2019 | Financial Analyst Meeting 2019 Page 26
Slide 27: 5 Strategic Priorities
5 STRATEGIC PRIORITIES DRIVE GROWTH ACCELERATE WIN STEP UP IN WHITE SPOTS WITH SKIN CARE DIGITALIZATION INCREASE PRODUCTIVITY CREATE VALUE FOR SOCIETY February 27, 2019 | Financial Analyst Meeting 2019 Page 27
Slide 28: Win in India
WIN IN INDIA NET SALES DEVELOPMENT SINCE 2011 NET SALES x7 No. 2 MARKET POSITION IN DEO & BODY No. 1 IN MODERN TRADE & ECOMMERCE NUMBER OF STORES x 5 PROFITABLE AFTER 5 YEARS 2011 2012 2013 2014 2015 2016 2017 2018 February 27, 2019 | Financial Analyst Meeting 2019 Page 28
Slide 29: Win in India
WIN IN INDIA Production& R&D Center 2011 2012 2013 2014 2015 2016 2017 2018 FC 2019 BRAND REPOSITIONING LOCALIZE SC AND R&D TRULY LOCAL MODEL February 27, 2019 | Financial Analyst Meeting 2019 Page 29
Slide 30: White Spot Potential
WHITE SPOT POTENTIAL % OF NET SALES HALF OF THE WORLD’S POPULATION CONSUMES LESS THAN 43% 43% 10 CENTS WORTH OF BEIERSDORF PRODUCTS SOURCE: Euromonitor February 27, 2019 | Financial Analyst Meeting 2019 Page 30
Slide 31: New Affiliates
NEW AFFILIATES RECENTLY FOUNDED PLANNED Pakistan PRODUCTION CENTER Egypt Saudi Arabia Bangladesh 2018 2017 2016 Myanmar Nigeria Ghana 2016 2012 ADDITIONAL POPULATION COVERED: ~800 MILLION February 27, 2019 | Financial Analyst Meeting 2019 Page 31
Slide 32: Long Term Commitment to China
LONG TERM COMMITMENT TO CHINA STRATEGIC REVIEW SLEK HAIR CARE CHINA HEADQUARTERED SKIN CARE INNOVATION CENTER February 27, 2019 | Financial Analyst Meeting 2019 Page 32
Slide 33: 5 Strategic Priorities
5 STRATEGIC PRIORITIES DRIVE GROWTH ACCELERATE WIN STEP UP IN WHITE SPOTS WITH SKIN CARE DIGITALIZATION INCREASE PRODUCTIVITY CREATE VALUE FOR SOCIETY February 27, 2019 | Financial Analyst Meeting 2019 Page 33
Slide 34: Win with Skin Care
WIN WITH SKIN CARE PORTFOLIO FOCUS MARGIN ENHANCING INNOVATION STEP UP INNOVATION CAPABILITIES February 27, 2019 | Financial Analyst Meeting 2019 Page 34
Slide 35: Complementing Brand Portfolio
COMPLEMENTING BRAND PORTFOLIO MASS DERMO LUXURY HEALTH NEW SKIN CARE COSMETIC SKIN CARE CARE SEGMENTS February 27, 2019 | Financial Analyst Meeting 2019 Page 35
Slide 36: Innovations 2019
INNOVATIONS 2019 ACTIVATES CELLS FOR REPLENISHES, SENSITIVE BALM STRENGTHENS SKIN & REJUVENATING & RESHAPED & STRENGHTENED PROTECTS & BEAUTIFIES FOR MEN’S PLUMPS UP WRINKLES DETOXIFYING TREATMENT SKIN SKIN AFTER SHAVING SKIN & STUBBLE IN 7 DAYS LOTION February 27, 2019 | Financial Analyst Meeting 20
Slide 37: The Next Milestone in Innovation
THE NEXT MILESTONE IN INNOVATION February 27, 2019 | Financial Analyst Meeting 2019 Page 37
Slide 38: Hyperpigmentation
ONE COMMON SKIN CONCERN WHICH AFFECTS MORE THAN HALF OF THE GLOBAL FEMALE POPULATION HYPERPIGMENTATION February 27, 2019 | Financial Analyst Meeting 2019 Page 38
Slide 39: The Solution – Thiamidol
THE SOLUTION – THIAMIDOL 2 1 m M A S I S c o re C h a n g e (m e a n S D ) 0 -1 -2 -3 -4 -5 BEFORE T h ia m id o l -6 c o n tro l AFTER 0 4 8 12 tr e a tm e n t (w e e k s ) 10 YEARS OF PIONEERING RESEARCH CLINICALLY PROVEN TO VISIBLY REDUCE GIVES THE SKIN A MORE EVEN PATENT
Slide 40: 5 Strategic Priorities
5 STRATEGIC PRIORITIES DRIVE GROWTH ACCELERATE WIN STEP UP IN WHITE SPOTS WITH SKIN CARE DIGITALIZATION INCREASE PRODUCTIVITY CREATE VALUE FOR SOCIETY February 27, 2019 | Financial Analyst Meeting 2019 Page 40
Slide 41: Step Up Digitalization
STEP UP DIGITALIZATION DIGITAL CONNECTION TO CONSUMER DIGITAL TRANSFORMATION INCREASE PRODUCTIVITY February 27, 2019 | Financial Analyst Meeting 2019 Page 41
Slide 42: 5 Strategic Priorities
5 STRATEGIC PRIORITIES DRIVE GROWTH ACCELERATE WIN STEP UP IN WHITE SPOTS WITH SKIN CARE DIGITALIZATION INCREASE PRODUCTIVITY CREATE VALUE FOR SOCIETY February 27, 2019 | Financial Analyst Meeting 2019 Page 42
Slide 43: Fuel the Growth
FUEL THE GROWTH DRIVE GROSS MARGIN SIMPLE & FAST ORGANIZATION WORKING CAPITAL & TAX RATE February 27, 2019 | Financial Analyst Meeting 2019 Page 43
Slide 44: 5 Strategic Priorities
5 STRATEGIC PRIORITIES DRIVE GROWTH ACCELERATE WIN STEP UP IN WHITE SPOTS WITH SKIN CARE DIGITALIZATION INCREASE PRODUCTIVITY CREATE VALUE FOR SOCIETY February 27, 2019 | Financial Analyst Meeting 2019 Page 44
Slide 45: We Care. Achievements
WE CARE. ACHIEVEMENTS PRODUCTS PLANET PEOPLE 100% FREE OF MICROBEADS 81% RENEWABLE ELECTRICITY 960,000 FAMILIES SOCIALLY SINCE 2015 SUPPORTED SINCE 2013 -59% ENERGY-RELATED CO2 PER 74% CERTIFIED PALM UNIT SINCE 2014 February 27, 2019 | Financial Analyst Meeting 2019 Page 45
Slide 46: We Commit
WE COMMIT 25% RECYCLED CONTENT IN PLASTIC PACKAGING IN EUROPE BY 2025 100% OF PACKAGING RECYCLABLE, COMPOSTABLE OR REUSABLE BY 2025 February 27, 2019 | Financial Analyst Meeting 2019 Page 46
Slide 47: February 27, 2019 | Financial Analyst Meeting 2019 Page 47
February 27, 2019 | Financial Analyst Meeting 2019 Page 47
Slide 48: tesa Business Segments
TESA BUSINESS SEGMENTS IN MILL. €, ORGANIC GROWTH DIRECT INDUSTRIES TRADE MARKETS TESA TOTAL (+9.1% ) (+3.8%) (+6.8%) 1,343* 798 539 2018 2018 2018 AUTOMOTIVE CONSUMER & CRAFTSMEN ELECTRONICS GENERAL INDUSTRIAL MARKETS PRINT AND PAPER BUILDING SUPPLY * Incl. ancillary businesses February 27, 2019 |
Slide 49: Electronic Industry Solutions
ELECTRONIC INDUSTRY SOLUTIONS Component Mounting Film and Graphite Secure component mounting Screen Mounting Sheet Lamination inside and outside of the Mounting of demanding Reliable bonding tapes for device Sealing and lens and touch panel easy lamination process Cushioning applications Preventing
Slide 50: Well-Positioned and Balanced
WELL-POSITIONED AND BALANCED ADHESIVE TAPES ARE REPLACING TECHNOLOGIES LIKE FIXING, BONDING AND MOUNTING ADHESIVE SOLUTIONS ENABLE MINIATURIZATION AND LIGHTWEIGHT CONSTRUCTION TAPES CAN ADD FUNCTIONALITIES LIKE LIGHT AND HEAT MANAGEMENT ADHESIVE SOLUTIONS SUPPORT SUSTAINABILITY WITH ENERGY EFFICIENT
Slide 51: Agenda
AGENDA FINANCIAL RESULTS 2018 STRATEGY UPDATE FINANCIAL AMBITIONS SUMMARY Q&A February 27, 2019 | Financial Analyst Meeting 2019 Page 51
Slide 52: We Commit to Sustainable Value Creation
WE COMMIT TO SUSTAINABLE VALUE CREATION INVESTMENTS FOR GROWTH INCREASED PRODUCTIVITY CAPITAL ALLOCATION February 27, 2019 | Financial Analyst Meeting 2019 Page 52
Slide 53: Consumer Growth Ambition
CONSUMER GROWTH AMBITION OUTPERFORM THE MARKET WITH MEDIUM-TERM GROWTH OF 4%-6% +4-6%* +3-5% 2019 WHITE SKIN CARE CONSUMER/ 2023 SPOTS DIGITAL * Assuming 3% underlying market growth in Skin and Personal Care February 27, 2019 | Financial Analyst Meeting 2019 Page 53
Slide 54: Investments for Growth / Consumer Business
INVESTMENTS FOR GROWTH / CONSUMER BUSINESS ACCELERATE IN WHITE SPOTS WIN WITH SKIN CARE STEP UP DIGITALIZATION INCREASE INVESTMENTS BY EUR 70-80M February 27, 2019 | Financial Analyst Meeting 2019 Page 54
Slide 55: Margin Evolution with Focus on Growth Opportunities
MARGIN EVOLUTION WITH FOCUS ON GROWTH OPPORTUNITIES / CONSUMER BUSINESS 16-17% 2019 ONWARDS INVESTMENTS FOR GROWTH 15.3% FROM 2021 EBIT MARGIN IMPROVEMENT INVESTMENTS FOR GROWTH FROM 2023 SUSTAINABLY HIGHER GROWTH & HIGHER MARGINS 2018 2019 2023 February 27, 2019 | Financial Analyst Meeting 2019 Pag
Slide 56: Strategic Priority / Consumer Business
STRATEGIC PRIORITY / CONSUMER BUSINESS PRODUCTIVITY IN SCOPE • REVENUE GROWTH MANAGEMENT • VALUE ENGINEERING • ORGANIZATIONAL EFFICIENCIES • TAX RATE IMPROVEMENT KPIs • GROSS MARGIN • EBIT MARGIN • GENERAL EXPENSES • EFFECTIVE TAX RATE (ETR) February 27, 2019 | Financial Analyst Meeting 2019 Page 56
Slide 57: Tax Rate Improvement
TAX RATE IMPROVEMENT IN % 35.0 32.6 33.4 33.8 30.7 30.1 30.0 30.0 -200bps 28.9 28.0 25.0 20.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 EFFECTIVE TAX RATE (ETR) NORMALIZED ETR CURVE February 27, 2019 | Financial Analyst Meeting 2019 Page 57
Slide 58: Ambition 2023 / Consumer Business
AMBITION 2023 / CONSUMER BUSINESS ORGANIZATIONAL GROSS MARGIN EFFICIENCIES EFFECTIVE TAX RATE SUSTAINABLE INCREASE ENSURE ORGANIZATIONAL IMPROVE ETR BY SEIZING DUE TO EFFICIENCIES, UPSKILLING LOCAL TAX OPTIMIZATION • RGM WORKFORCE AND COST OPPORTUNITIES AND • VALUE ENGINEERING DISCIPLINE CONTINUOUS
Slide 59: Capital Allocation
CAPITAL ALLOCATION CAPEX INVESTMENTS M&A OPPORTUNITIES WORKING CAPITAL February 27, 2019 | Financial Analyst Meeting 2019 Page 59
Slide 60: Capital Expenditures
CAPITAL EXPENDITURES IN MILLION EUROS AND IN % OF GROUP SALES 358 301 250-350 P.A. CAPACITY 4% 249 195 162 4.9% CAPABILITIES 4.8% 3.7% 2.8% 2.4% EFFICIENCIES 2014 2015 2016 2017 2018 2019 - 2023 February 27, 2019 | Financial Analyst Meeting 2019 Page 60
Slide 61: M&A Opportunities
M&A OPPORTUNITIES GAPS IN THE PORTFOLIO • NEW MARKET SEGMENTS • GEOGRAPHY/CATEGORY WHITE SPOTS • DIGITAL ENABLERS VC FUND: EUR 50M • SKIN CARE TECHNOLOGIES • NEW BUSINESS MODELS • DIGITAL PLATFORMS February 27, 2019 | Financial Analyst Meeting 2019 Page 61
Slide 62: Working Capital
WORKING CAPITAL 12-MONTH ROLLING AVERAGE IN % OF CONSUMER SALES 14.6% 13.6% MORE THAN 11.0% 50 BPS P.A. 9.9% 9.2% 2014 2015 2016 2017 2018 2023 February 27, 2019 | Financial Analyst Meeting 2019 Page 62
Slide 63: Financial Summary
FINANCIAL SUMMARY CONSUMER 2023 GROWTH AMBITION +4-6% MARGIN IMPROVEMENT 150-250BPS GROUP TAX RATE IMPROVEMENT AROUND 200BPS February 27, 2019 | Financial Analyst Meeting 2019 Page 63
Slide 64: Financial Summary
FINANCIAL SUMMARY TESA MID-TERM GROWTH AMBITION OUTPERFORM THE MARKET BY 2% P.A. INVESTMENTS CONTINUE BUILDING CAPABILITIES PROFITABILITY MAINTAIN THE EBIT MARGIN ABOVE 15% February 27, 2019 | Financial Analyst Meeting 2019 Page 64
Slide 65: Agenda
AGENDA FINANCIAL RESULTS 2018 STRATEGY UPDATE FINANCIAL AMBITIONS SUMMARY Q&A February 27, 2019 | Financial Analyst Meeting 2019 Page 65
Slide 66: Summary
SUMMARY INDUSTRY IN DISRUPTION OPPORTUNITIES FOR BEIERSDORF NEED TO ACT IMMEDIATELY & DECISIVELY WE ARE READY TO ACT - C.A.R.E + WE ARE COMMITTED TO LONGTERM VALUE CREATION February 27, 2019 | Financial Analyst Meeting 2019 Page 66
Slide 67: Q&A
Q&A February 27, 2019 | Financial Analyst Meeting 2019 Page 67