Beiersdorf Ag · XETR:BEI
Beiersdorf — Investor Day (March 2020)
60 slides from Beiersdorf's investor day presentation, Mar 3, 2020
Slide 1: Financial Analyst Meeting 2020
FINANCIAL ANALYST MEETING 2020 March 3rd, 2020 Stefan De Loecker I Dessi Temperley
Slide 2: Disclaimer
DISCLAIMER Some of the statements made in this presentation contain forward- We do not assume any obligation to update the forward-looking looking information that involve a number of risks and uncertainties. statements contained in this presentation. Such statements are based on a number of assumpt
Slide 3: CARE
~7 CARE
Slide 4: Competitive Sustainable Growth
OUR COMMITMENT COMPETITIVE SUSTAINABLE GROWTH ACCELERATE DIGITAL WIN WITH SKIN CARE UNLOCK WHITE SPOT POTENTIAL CONSUMER CONNECTION FUEL THE GROWTH THROUGH INCREASED PRODUCTIVITY BUILD ON STRONG FOUNDATIONS: COMPLIANCE – CORE VALUES – CULTURE – SUSTAINABILITY March 3rd | Financial Analyst Meeting 20
Slide 5: Progress 2019
PROGRESS 2019
Slide 6: Accelerate Digital Consumer Connection
ACCELERATE DIGITAL CONSUMER CONNECTION
Slide 7: Accelerate Digital Consumer Connection
ACCELERATE DIGITAL CONSUMER CONNECTION +40% +23% +70% digital media ecommerce ratings & review growth growth growth
Slide 8: Win with Skincare
WIN WITH SKINCARE WIN WITH SKINCARE
Slide 9: Win with Skin Care – Uplift in Face Care
WIN WITH SKIN CARE – UP LIFT IN FACE CARE +6.2% NS Face Care Strengthening Market Leadership In Europe March 3rd | Financial Analyst Meeting 2020 Page 9
Slide 10: Win with Skin Care – Extend Anti Pigment
WIN WITH SKIN CARE – EXTEND ANTI PIGMENT No. 1 Eucerin even skin in 11 countries March 3rd | Financial Analyst Meeting 2020 Page 10
Slide 11: Market Entry China
MARKET ENTRY CHINA March 3rd | Financial Analyst Meeting 2020 Page 11
Slide 12: Market Entry Russia
MARKET ENTRY RUSSIA March 3rd | Financial Analyst Meeting 2020 Page 12
Slide 13: Unlock White Spot Potential
UNLOCK WHITE SPOT POTENTIAL
Slide 14: Unlock White Spots – Natural Cosmetics
UNLOCK WHITE SPOTS – NATURAL COSMETICS Page 14
Slide 15: Unlock White Spots – Natural Cosmetics
UNLOCK WHITE SPOTS – NATURAL COSMETICS March 3rd | Financial Analyst Meeting 2020 Page 15
Slide 16: Unlock White Spots – Oscar&Paul, Care+
— UNLOCK WHITE SPOTS — OSCAR&PAUL’ CARE*+ OKIN STORIES PERFORMANCE COSMETICS su sioates Beiersdorf
Slide 17: Unlock White Spots – Coppertone
UNLOCK WHITE SPOTS – COPPERTONE Welcome new Smooth 450 employees transition Preparing for Integration future growth on track March 3rd | Financial Analyst Meeting 2020 Page 17
Slide 18: Fuel the Growth – Footprint Expansion
FUEL THE GROWTH – FOOTPRINT EXPANSION Brazil, Itatiba India, Gujarat Thailand, Bangkok Myanmar PC Expansion PC Expansion PC Expansion New Affiliate March 3rd | Financial Analyst Meeting 2020 Page 18
Slide 19: Expansion Production Capacity – Germany
EXPANSION PRODUCTION CAPACITY – GERMANY LEIPZIG LEIPZIG March 3rd | Financial Analyst Meeting 2020 Page 19
Slide 20: 2019 We Are on Track
2019 WE ARE ON TRACK 1st year of C.A.R.E.+ delivered on commitment Competitive, sustainable growth C.A.R.E.+ addresses the right issues and proves our competitiveness in an increasingly challenging market environment. Strategic priorities consistently implemented March 3rd | Financial Analyst Meetin
Slide 21: March 3rd, 2020 | Financial Analyst Meeting 2020 Page 21
March 3rd, 2020 | Financial Analyst Meeting 2020 Page 21
Slide 22: Direct Industries
DIRECT INDUSTRIES Bond & Detach TESA® HIP – 921XX • Stretch-release Tapes • Lightweight trend requires lighter • Preferred solution for materials inside cars e.g. plastics removable battery • With tesa ® HiP plastics can be mounting bonded securely • Easy and residue-free DIRECT INDUSTRIES removal S
Slide 23: Trade Markets
TRADE MARKETS Consumer & Craftsmen Bathroom Accessoires • Focus on individual consumers and – Power Kit professional craftspeople. • Easy application • Eliminating the need for drilling by using with tesa® Power.Kit innovative adhesive technology. • Europe-wide launch TRADE MARKETS of a new range of
Slide 24: Financial Results 2019
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Slide 25: Financial Results 2019
FINANCIAL RESULTS 2019 GROWTH AHEAD OF THE MARKET 2019 DELIVERING IMPROVEMENTS IN PRICING, GROSS MARGIN, WORKING CAPITAL AND TAX RATE March 3rd | Financial Analyst Meeting 2020 Page 25
Slide 26: Group – Key Figures
GROUP – KEY FIGURES JAN. – DEC. 2018 JAN. – DEC. 2019 CHANGE MILL. € MILL. € NOMINAL ORGANIC SALES 7,233 7,653 +5.8% +4.1% As reported EBIT 1,097 1,032 -5.9% PROFIT AFTER TAX 745 736 -1.2% EARNINGS PER SHARE IN € 3.21 3.17 -1.3% Underlying* PROFIT AFTER TAX 756 795 +5.1% EBIT MARGIN 15.4% 14.5% PROF
Slide 27: Group – Segments
GROUP – SEGMENTS JAN. – DEC. 2018 JAN. – DEC. 2019 CHANGE GROUP MILL. € MILL. € NOMINAL ORGANIC SALES 7,233 7,653 +5.8% +4.1% EBIT* 1,113 1,108 -0.5% EBIT MARGIN* 15.4% 14.5% CONSUMER SALES 5,890 6,274 +6.5% +4.8% EBIT* 903 896 -0.8% EBIT MARGIN* 15.3% 14.3% TESA SALES 1,343 1,379 +2.7% +0.8% EBIT*
Slide 28: Consumer – Growth
CONSUMER – GROWTH ORGANIC SALES GROWTH IN % +7.4* +5.9* +5.4* +4.9* +4.9* +4.9* +4.2* +6.8 +4.7 +5.0 +4.5 +4.8 +3.8 +4.1 FY 2017 FY 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2019 * Consumer organic sales growth if sales in Argentina had been calculated at constant FX rates March 3rd | Financial Analys
Slide 29: Consumer – Growth
CONSUMER – GROWTH NIVEA DERMA HEALTHCARE LA PRAIRIE FY 2019 +3.0% +7.5% 3.1% +20.0% Q4 2019 +3.1% +7.7% -0.4% +9.8% March 3rd | Financial Analyst Meeting 2020 Page 29
Slide 30: Consumer – Europe
CONSUMER – EUROPE JAN. – DEC. 2019 CHANGE MILL. € FY 2019 NOMINAL FY 2019 ORGANIC Q4 2019 ORGANIC WESTERN EUROPE 2,418 +2.7% +2.2% +0.5% EASTERN EUROPE 609 +3.8% +3.0% +4.1% EUROPE 3,027 +2.9% +2.3% +1.3% • WESTERN EUROPE: FACE CARE AND WOUND CARE PERFORMED VERY WELL • EASTERN EUROPE CONTINUES WITH
Slide 31: Consumer – Americas
CONSUMER – AMERICAS JAN. – DEC. 2019 CHANGE MILL. € FY 2019 NOMINAL FY 2019 ORGANIC Q4 2019 ORGANIC NORTH AMERICA 497 +12.4% +3.8% +8.3% LATIN AMERICA 648 +6.3% +6.4% +3.4% AMERICAS 1,145 +8.9% +5.3% +5.4% • ARGENTINA SALES IMPACTED BY NEGATIVE FOREIGN EXCHANGE • BRAZIL AND MEXICO AND CENTRAL AMERIC
Slide 32: Consumer – Africa/Asia/Australia
CONSUMER – AFRICA/ASIA/AUSTRALIA JAN. – DEC. 2019 CHANGE MILL. € FY 2019 NOMINAL FY 2019 ORGANIC Q4 2019 ORGANIC A/A/A 2,102 +10.8% +8.4% +7.3% • STRONG BROAD-BASED GROWTH LED BY TURKEY, INDIA, MALAYSIA AND PARTS OF AFRICA • LA PRAIRIE AND EUCERIN RESILIENT DESPITE CONFLICTS IN HONG KONG • A/A/A GRO
Slide 33: Consumer – EBIT
CONSUMER – EBIT IN % OF CONSUMER SALES 15.2% 15.3% 14.8% 13.9% 14.3%* 2015 2016 2017 2018 2019 * Reported on ongoing operations (i.e. excluding Coppertone) and excluding special factors March 3rd | Financial Analyst Meeting 2020 Page 33
Slide 34: Gross Margin – A Positive Turnaround
GROSS MARGIN – A POSITIVE TURNAROUND IN % OF CONSUMER SALES +0.5% -0.4% 60.9%* +0.6% -0.2% 60.4% 2018 PRICE MIX COST OF FX 2019 SALES, LOGISTICS * Reported on ongoing operations (i.e. excluding Coppertone) & OTHERS March 3rd | Financial Analyst Meeting 2020 Page 34
Slide 35: Working Capital – Delivery Above Target
WORKING CAPITAL – DELIVERY ABOVE TARGET WORKING CAPITAL IN % OF CONSUMER SALES ON A 12-MONTHS ROLLING BASIS 13.6% 11.0% 9.9% 9.2% 9.2%* 2015 2016 2017 2018 2019 * Reported on ongoing operations (i.e. excluding Coppertone) March 3rd | Financial Analyst Meeting 2020 Page 35
Slide 36: tesa – Key Figures
TESA – KEY FIGURES JAN. – DEC. 2018 JAN. – DEC. 2019 CHANGE MILL. € MILL. € NOMINAL ORGANIC SALES 1,343 1,379 +2.7% +0.8% EBIT* 210 212 +1.0% EBIT MARGIN* 15.7% 15.3% * Excl. special factors March 3rd | Financial Analyst Meeting 2020 Page 36
Slide 37: Profit After Tax
PROFIT AFTER TAX IN % OF GROUP SALES 10.8% 10.5% 10.4%* 10.0% 9.8% 2015 2016 2017 2018 2019 * Reported on ongoing operations (i.e. excluding Coppertone) and excluding special factors March 3rd | Financial Analyst Meeting 2020 Page 37
Slide 38: Tax Rate Development
TAX RATE DEVELOPMENT IN % 35,0 32.6 33.4 33.8 30.7 30.1 30.0 30,0 29.0 28.9 28.3 28.0 25,0 20,0 2013 2014 2015 2016 2017 2018 2019 2020 2021 EFFECTIVE TAX RATE (ETR) UNDERLYING ETR* * Excluding the impact from special factors March 3rd | Financial Analyst Meeting 2020 Page 38
Slide 39: Guidance 2020
GUIDANCE 2020 CONSUMER • SALES GROWTH 3-5% • EBIT MARGIN 14-14.5% TOTAL GROUP • SALES GROWTH 3-5% • EBIT MARGIN ON LAST YEAR’S LEVEL TESA • PAT MARGIN ON LAST YEAR’S LEVEL • SALES GROWTH SLIGHTLY POSITIVE • EBIT MARGIN ON LAST YEAR’S LEVEL 2019 DATA FOR REFERENCE (EXCLUDING SPECIAL FACTORS): • CONSU
Slide 40: Outlook 2020: Focus on Consumers
3 OUTLOOK FOCUS ON CONSUMERS 2020
Slide 41: Accelerate Digital Consumer Connection
ACCELERATE DIGITAL CONSUMER CONNECTION 2020
Slide 42: AI-Based Skin Diagnostics
AI-BASED SKIN DIAGNOSTICS 10K Women Worldwide 12 MIO. High-quality images 11 Parameters March 3rd | Financial Analyst Meeting 2020 Page 42
Slide 43: Win with Skincare 2020
WIN WITH SKINCARE 2020
Slide 44: Win with Skin Care – Top Innovations
WIN WITH SKIN CARE – TOP INNOVATIONS Face Q10 Skin Identical March 3rd | Financial Analyst Meeting 2020 Page 44
Slide 45: Top Innovations
TOP INNOVATIONS Microbiome balance March 3rd | Financial Analyst Meeting 2020 Page 45
Slide 46: Top Innovations
TOP INNOVATIONS Eucerin Sun Protection Pigment Control Sun Fluid with Thiamidol March 3rd | Financial Analyst Meeting 2020 Page 46
Slide 47: Top Innovations
TOP INNOVATIONS La Prairie White Caviar Eye Extraordinaire March 3rd | Financial Analyst Meeting 2020 Page 47
Slide 48: Corporate Venture Fund
CORPORATE VENTURE FUND Invest in disruptive technologies & new business models Focus on personalization, sustainability and superior skin care Latest investment in Korean tech start-up LYCL Inc. March 3rd | Financial Analyst Meeting 2020 Page 48
Slide 49: Stop the Water While Using Me!
STOP THE WATER WHILE USING ME! Accelerate joint sustainability initiatives Expand the impact of sustainable skin care March 3rd | Financial Analyst Meeting 2020 Page 49
Slide 50: Sustainability 2020
SUSTAINABILITY 2020
Slide 51: Care Beyond Skin
CARE BEYOND SKIN BEIERSDORF‘S SUSTAINABILITY AGENDA
Slide 52: Care Beyond Skin
CARE BEYOND SKIN CARE BEYOND SKIN SUSTAINABILITY AGENDA March 3 | Financial Analyst Meeting 2020 Page 52
Slide 53: Care Beyond Skin: For a Carbon Positive Future
CARE BEYOND SKIN: FOR A CARBON POSITIVE FUTURE BY 2025 BY 2030 Absolute reduction of total Climate neutral value chain emissions by 30% factories March 3rd | Financial Analyst Meeting 2020 Page 53
Slide 54: Care Beyond Skin: For Fully Circular Resources
CARE BEYOND SKIN: FOR FULLY CIRCULAR RESOURCES BY 2025 -30% waste reduction 25% recycled content in our 100% of our packaging recyclable, in our operations plastic packaging in Europe compostable or reusable March 3rd | Financial Analyst Meeting 2020 Page 54
Slide 55: Delivering on Our Promise
DELIVERING ON OUR PROMISE 100% rPET* BY END 2020 90% of all our PET bottles used in With this, we will have removed Europe will be made of recycled material more than 1,200 tons of virgin plastic from our packaging *bottles only March 3rd | Financial Analyst Meeting 2020 Page 55
Slide 56: Care Beyond Skin: For Sustainable Land Use
CARE BEYOND SKIN: FOR SUSTAINABLE LAND USE BY 2025 All our renewable ingredients will Deforestation-free sourcing of come from sustainable sources our main raw materials March 3rd | Financial Analyst Meeting 2020 Page 56
Slide 57: Care Beyond Skin: For Regenerative Water Environments
CARE BEYOND SKIN: FOR REGENERATIVE WATER ENVIRONMENTS BY 2021 BY 2025 NIVEA 100% free of microplastic Exclusively biodegradable polymers 25% water reduction (EUCERIN by 2023) in European product formulas in our production March 3rd | Financial Analyst Meeting 2020 Page 57
Slide 58: Care Beyond Skin
CARE BEYOND SKIN BEIERSDORF‘S SUSTAINABILITY AGENDA
Slide 59: Beiersdorf
Beiersdorf
Slide 60: Thank You!
THANK YOU! Beiersdorf