2010 03 04 bdf presentation
TRANSCRIPT
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 1/44
Financial Analyst MeetingHamburg, March 4, 2010
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 2/44
2
Disclaimer
Some of the statements made in this presentation contain forward-looking information that involves 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, aswell as uncertainties and contingencies that are subject to change.Actual results of events could differ materially from those anticipated inthe Company´s forward-looking statements as a result of a variety offactors, including those set forth from time to time in the Company´s
press releases and reports and those set forth from time to time in theCompany´s analyst calls and discussions. We do not assume anyobligation to update the forward-looking statements contained in thispresentation.
This presentation does not constitute an offer to sell or a solicitation oroffer to buy any securities of the Company, and no part of this
presentation shall form the basis of or may be relied upon in connectionwith any contract or commitment. This presentation is being presentedsolely for your information and is subject to change without notice.
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 3/44
Focus on our Strengths
in a New RealityThomas-B. Quaas (CEO)
FinancialsDr. Bernhard Düttmann (CFO)
AGENDA
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 4/44
4
Sales Earnings Before Interest and Tax
11.1% 11.7% 12.4% 11.7% 10.2%EBIT margin
Growth (organic) – Group
(in mill. €)
Beiersdorf Development - Group
+3.9% +7.3% +9.1% +7.5% -0.7%
EBIT 2006 – 2008 excluding special factors (due to the realignment of the Consumer Supply Chain and divestments)
531
597
684 696
587
2005 2006 2007 2008 2009
4,7765,120
5,5075,971
5,748
2005 2006 2007 2008 2009
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 5/44
5
Sales Earnings Before Interest and Tax
11.6% 12.1% 12.8% 12.0% 11.1%EBIT margin
Growth (organic) – Consumer Segment
(in mill. €)
Beiersdorf Development - Consumer
+4.0% +7.2% +9.3% +8.6% +1.2%
470524
596 615
558
2005 2006 2007 2008 2009
4,0414,327
4,661
5,125 5,011
2005 2006 2007 2008 2009
EBIT 2006 – 2008 excluding special factors (due to the realignment of the Consumer Supply Chain and divestments)
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 6/44
Group: Mastering Crisis Year 2009
6
Realistic assessment of the situation
Flexible and fast reaction in the whole company
Group-wide fixed cost management
Marketing and R&D investments remained at high level
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 7/44
Consumer: Mastering Crisis Year 2009
7
NIVEA – strengthening our superior brand:
Leveraging high level of NIVEA trust &communicating the No.1 positions
Opening of new “NIVEA Haus” in Berlin
Value oriented consumer activities
Regional focus on Asia:
New factory in Shanghai / capacity enlargementin Thailand
Executive Board member for Asia
Supply Chain:Quick response
Higher flexibility
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 8/44
tesa: Mastering Crisis Year 2009
8
Flexible package of measures
Capacity adjustments (Malaysia, Harrislee)
Outsourcing of logistics (Offenburg)
Use of reduced working hours
Investments in new business areas
Medical plasters and special products for newtouchscreen cellphones (Hamburg cleanroomtechnology)
Development of new doubled-sided adhesivetapes
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 9/44
The New Reality
9
Moderate market growth
Changed behavior of retailers
Changed behavior of consumers
Continuing economic uncertainty and volatility
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 10/44
Superior Success Factors in the New Reality
10
Flexibility and quick reaction time
Closeness to customers and consumers
Trust in our brands
Focus on our strengths
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 11/44
Actions Needed in the New Reality
11
Fast and flexible actions to reach business targets
Maintain marketing and R&D investments at high level
Focus on shopper driven supply chain
Emphasize all relevant price points with basic products
Focus on core brand values
Advertise and emphasize #1 positions
Source: GfK 2009
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 12/44
12
Source: Most Trusted Brands Study 2010
Consumers Trust in NIVEA
Number 1 in all 16 participating countries
Most trustedSkin Care Brand
NIVEA took the top spotfor the 10th consecutive year
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 13/44
13
Country SKIN FACE SUN MEN´S DEO BATH SHOWER HAIR CARE STYLING DECO LIP BABY
Europe West
Austria 1 1 1 1 1 1 4 2 3Belgium 1 1 1 2 1 2 2 4 3 3 3
France 1 1 2 2 3 8 8 3 3
Germany 1 1 1 1 1 3 2 4 3 5
Greece 1 2 2 1 2 10 6
Ireland 1 1
Italy 1 1 1 1 2 6 3 6 4 4
Netherlands 1 1 1 1 1 2 4 5
Portugal 1 1 1 1 1 4 2
Spain 1 3 2 1 4
Switzerland 1 1 1 1 1 2 1 3 1 2 2
Turkey 2 1 1 1
United Kingdom 1 4 2 2 5 9 1
Europe NorthDenmark 1 2 1 2 2 6
Norway 2 1 1 2 7 2
Sweden 1 1 3 2 2 7 2
Europe East
Bulgaria 1 3 1 1 1 4
Croatia 1 1 1 1 2 2
Czech Rep. 1 2 1 2 1 4 3
Estonia 1 3 2 1 6 10
Hungary 1 3 1 2 1 7 3 6 3 4
Latvia 1 3 2 1 5 5
Lithuania 1 1 1 1 3 4
Poland 1 1 3 1 1 1 5 3 1 2Romania 1 1 1 1 1 4 2
Russia 1 5 2 2 4 2 7
Serbia 1 1 1 1 1 3
Slovak Rep. 1 2 1 2 1 4 4
Slovenia 1 1 1 1 2 2
Ukraine 2 4 3 2 2 6 5
Strong Brand is an AdvantageNIVEA Market Positions Europe January-December 2009
Source: AC Nielsen / IRI
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 14/44
Focus on Our Face Care Competence:NIVEA Visage Q10
14
NIVEA Q10
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 15/44
Focus on Face Care CompetenceRe-energizing Blockbuster NIVEA Visage Q10
15
NIVEA Visage biggest NIVEA category.
The #1 in face care in Western Europe with 18% market share.
Beiersdorf was the first to use Q10 in cosmetics against wrinkles and skin aging.
Source: Nielsen Market Share 12/2009
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 16/44
16
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 17/44
Innovation Focus in Face CareEucerin Aquaporin ACTIVE
Aquaporins control the water transfer into/out of the cells.
In 2003, Peter Agre obtained a Nobel Prize fordiscovering aquaporins.
17
Breakthrough formula that activates the skin„sown moisture network.
Fortifying Eucerin‟s excellent position in the
pharmacy channel.
Superior moisturizing technology to betransferred to the NIVEA skin care line.
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 18/44
18
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 19/44
Focus on Skin Care CompetenceNIVEA Body
19
Strengthening the brand foundation byserving the core user segment.
Relaunch and line extension withadditional Q10.
Creating synergies by adopting facecare expertise.
Supports NIVEA„s #1 position as the
world„s leading firming and anti-
cellulite brand.
Launched worldwide in January 2010.
Source: Euromonitor 2008 (value market share)
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 20/44
20
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 21/44
Extending Beiersdorf‘s Skin Care ExpertiseNIVEA Deo Calm & Care
21
The first deodorant that activelyregenerates the skin after shaving.
Perfect combination of care andefficacy.
Our deodorant business is oneof the fastest growing NIVEAcategories.
Calm & Care has been launched
worldwide in January 2010.
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 22/44
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 23/44
Consumer Insight
“I prefer skin and beauty care products which containnatural ingredients.“
“Buying products with natural ingredients is important to me.“
Source: NIVEA Pilot study segmentation 2009
23
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 24/44
24h protection without aluminium salts.
Preservatives free / no paraben.
Doesn‟t clog pores.
Lets your skin breathe naturally.
Launch in the Natural SegmentNIVEA Deo Pure & Natural Action
24
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 25/44
“The greatest thing in a job is when theplan you had turns out to work perfectly.“
Jogi Löw, Coach of the German national soccer team
25
26
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 26/44
NIVEA FOR MEN Offensive 2010 in Germany
+
+
NIVEA FOR MEN is the official careoutfitter of the German national soccerteam.
Jogi Löw, coach of the German nationalsoccer team, became the NIVEA FOR
MEN Care Coach.
Business target: Enhancing the marketleadership of NIVEA FOR MEN.
Unique platform for NIVEA FOR MEN in 2010.
26
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 27/44
Focus on Our Strengths
Stronger focus on skin care&
Even closer to our markets
27
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 28/44
Focus on our Strengths –
in a New RealityThomas-B. Quaas (CEO)
FinancialsDr. Bernhard Düttmann (CFO)
AGENDA
29
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 29/44
29
“The company has managed well through the recession.“
Analyst Quote:
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 30/44
31
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 31/44
31
3M 6M 9M
Sales development 3M-12M EBIT Ratio change 3M-12M
Gradual improvement during 2009
Consumer tesa
12M 3M 6M 9M 12M
11.3% 11.0% 11.1% 11.1%
0.7%2.0% 2.3%
3.9%
-0.5% 0.3% 0.9% 1.2%
-23.8%-21.0%
-16.9%
-12.2%
Strong against negative seasonal trend
(-120bps 12M vs. 3M in 2008)
Like-for-like
EBIT excluding special factors
32
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 32/44
32
Jan. – Dec.2008
Jan. – Dec.2009
mill. € mill. € in % in %
Consumer 5,125 5,011 -2.2 +1.2
tesa 846 737 -12.8 -12.2
Total 5,971 5,748 -3.7 -0.7
nominal like-for-like
Sales per Business Segment
Change
Like-for like changes adjusted for currency translation effects and divestments.
33
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 33/44
33
NIVEA‘s Growth Track Record
(in mill. €)
NIVEA Sales 1989 – 2009
100 176 336 505 682Index
509
948
1,812
2,726
3,683
1989 1994 1999 2004 2009
34
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 34/44
34
Consumer Sales per Region
(by origin)
Jan. – Dec.2008 Jan. – Dec.2009 Changelike-for-like Allocation
mill. € mill. € in % in %
Germany 985 933 +1.2 18.6
Western Europe 1,831 1,736 -3.9 34.7
Eastern Europe 653 567 +1.7 11.3North America 304 297 +2.5 5.9
Latin America 438 473 +13.3 9.4
Africa, Asia, Australia 914 1,005 +5.0 20.1
Total Consumer
thereof China, Russia, Brazil
5,125
541
5,011
593
+1.2
+11.6
100.0
11.8
Like-for like changes adjusted for currency translation effects and divestments.
35
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 35/44
35
Fostering Our Brand Equity
Marketing expenses(in mill. €)
% of sales - Group
1,417
1,6031,748
1,9151,842
2005 2006 2007 2008 2009
29.7%
31.3%31.7% 32.1% 32.0%
34.3%
36.2%
36.7% 36.7%36.3%
% of sales - Consumer
36
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 36/44
109118
127
149 149
2005 2006 2007 2008 2009
36
Safeguarding Innovations with Enhanced R&D
2.3%2.3% 2.3%
2.5%
2.6%
Research and development expenses(in mill. €)
% of sales
37
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 37/44
37
EBIT per Business Segment
Jan. – Dec. 2008 Jan. – Dec. 2009
mill. € % of sales mill. € % of sales
Consumer 615 12.0 558 11.1
tesa 81 9.6 29 3.9Total 696 11.7 587 10.2
2008 EBIT excluding special factors of €101 million (divestments of €96 million and €5 million due to the realignment of the Consumer Supply Chain)
38
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 38/44
EBIT per Region
Jan. – Dec. 2008 Jan. – Dec. 2009 Allocation
mill. € % of sales mill. € % of sales in %
Europe 632 15.4 535 14.2 91.1
Americas 37 4.5 20 2.4 3.5
Africa, Asia, Australia 27 2.6 32 2.8 5.4
Total 696 11.7 587 10.2
2008 EBIT excluding special factors of €101 million (divestments of €96 million and €5 million due to the realignment of the Consumer Supply Chain)
39
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 39/44
Statement of Income
2008 2009
mill. € % of sales mill. € % of sales
Sales 5,971 100.0 5,748 100.0
Cost of goods sold -1,979 -1,882
Gross profit 3,992 66.9 3,886 67.3
Advertising and promotion spending -1,915 -1,842
Other marketing and selling expenses -959 -924
Research and development expenses -149 -149
General and administrative expenses -292 -283
Other operating income / expenses (net) 120 -81
Operating result (EBIT) 797 13.4 587 10.2
Financial result 25 -4
Profit before tax 822 583Taxes on income -255 -203
Profit after tax 567 9.5 380 6.6
40
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 40/44
20.9
18.416.8
13.4 14.0
<12.0
Continuous Progress in Working Capital
X Average 4 quarters X Average 12 months Due date
Working Capital(Consumer Business)
in % of sales
2003 2004 2005 2006 2007 2010
Target below12% of sales
15.516.5
19.5
22.522.5
12.2
2008
16.1
16.0
11.8
2009
13.6
2007 and 2008 excluding acquisitions
41
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 41/44
Balance Sheet
Dec. 31st2008
Dec. 31st2009
mill. € mill. €
Intangible assets
Property, plant, and equipment
Other non-current assets
398
727
51
382
725
70
Non-current assets 1,176 1,177
Inventories
Trade receivables
Other current assets
Securities
Cash and cash equivalents
634
894
254
897
613
561
906
228
955
767
Current assets 3,292 3,417
Total 4,468 4,594
Dec. 31st2008
Dec. 31st2009
mill. € mill. €
Equity 2,460 2,636
Non-current provisions
Other non-current liabilities
366
242
359
173
Non-current liabilities 608 532
Current provisions
Income tax liabilities
Trade Payables
Current financial liabilities
Other current liabilities
363
99
690
174
74
391
107
699
158
71
Current liabilities 1,400 1,426
Total 4,468 4,594
Assets Liabilities
2008 intangible assets and other non-current liabilities adjusted
42
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 42/44
Employees per Business Segment Group
Dec. 31st2008 Dec. 31st2009 Change Allocation
in % in %
Consumer 17,865 16,648 -6.8 81.8
tesa 3,901 3,698 -5.2 18.2
Total Group 21,766 20,346 -6.5 100.0
43
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 43/44
Guidance 2010
Projections for Beiersdorf Group
Consumer
Sales growth faster than market
EBIT margin > 11%
tesa
Sales growth faster than market
EBIT margin > 7%
Total Group
Sales growth faster than market EBIT margin > 10%
PAT margin 7%
44
8/8/2019 2010 03 04 BDF Presentation
http://slidepdf.com/reader/full/2010-03-04-bdf-presentation 44/44
How to contact Investor Relations
Beiersdorf Website
www.Beiersdorf.com
IR-Hotline
Tel: +49 (0) 40 4909 5000
Fax: +49 (0) 40 4909 18 5000
Email: [email protected]