Professional Documents
Culture Documents
and outperformance
Rakesh Kapoor
Chief Executive Officer
Agenda
NOTES:
2004 restated following the adoption of IFRS
* Adjusted to exclude the impact of exceptional items
RB has been a clear success story
for more than 10 years
NOTES:
2004 restated following the adoption of IFRS
* Adjusted to exclude the impact of exceptional items
Outstanding shareholder returns
% per annum TSR
RB +20%
900 Unilever +11%
Colgate +5%
800
P&G +4%
700
TSR (rebased to 100)
600
500
400
300
200
100
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
2010 2011
Source: Deutsche Bank
Agenda
90
Countries
60
30
Brands
Innovation is in our DNA
World leading capability in Health & Hygiene
Consumer &&
Consumer
Medical
Medical
TV: 80%
Education
Education
USA
Social & Digital
GRPs 2012
USA
Appropriate KPIs to measure brand
equity investment
Includes:
Consumer &&
Consumer
Medical
A new RB brand equity investment metric (BEI)
Medical
TV & Print Media
Education
Education
We will consistently increase investment in BEI
Digital Marketing to drive growth
SocialSocial
& Digital
Media
Higher growth
Higher margin
NR 2011
Health £2,000m
24%
Hygiene
Core NR £8,411m
Health
24%
Hygiene
43% NR 2011
Portfolio £3,643m
Home
Core NR £8,411m
Hygiene
HOME 43%
Home NR 2011
24%
£2,009m
Portfolio
Health
24%
Portfolio brands
NR 2011 £759m
Role
9% Builds local scale and cash margin to reinvest
behind Powerbrands
Strategy
Balanced growth: Hold share
Core NR £8,411m
Private label business
2% private label business
10%
2008 2009 2010 2011
NRs £m 180 197 190 195
Core NR £8,411m
Medium term KPI
2011 2016
Home Home
24%
Portfolio P’folio
9%
Hygiene
Health
Hygiene Health
67% 72%
ORGANISATION
Medium term KPI
2011 2016
RUMEA
RUMEA
LAPAC LAPAC
ORGANISATION
Liz Doherty
Chief Financial Officer
What’s not changing
Gross margin:
a) Costs
‒ Product re-engineering (Project Fuel)
£50m in 2012
‒ Supply networks
b) Portfolio mix
c) Volume leverage
d) Price –
including promotional strategy
New gross margin definition
Total company (incl RBP)
• Geographical mix
– RUMEA / LAPAC margins expand
LAPAC
ENA
RUMEA
towards ENA levels
Gross margin
1) Organic
– New, best practice systems – SAP
Capital cost £150m
Annual benefit of £10m p.a. (2014/15)
– High class facilities for healthcare
2) M&A
Restructuring
Summary
RB strategy
POWERBRANDS
ORGANISATION
Summary – focus on core business
Q&A