Welcome to the 2016 - RB AGM 5th May 2016
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Welcome to the 2016 - RB AGM
5th May 2016
RB presentation to Shareholders2016 AGM
5th May 2016
Disclaimer
Cautionary note concerning forward-looking statements• This presentation contains statements with respect to the financial condition, results of operations and business of RB (the “Group”)
and certain of the plans and objectives of the Group that are forward-looking statements. Words such as ‘‘intends’, ‘targets’, or the negative of these terms and other similar expressions of future performance or results, and their negatives, are intended to identify such forward-looking statements. In particular, all statements that express forecasts, expectations and projections with respect to future matters, including targets for net revenue, operating margin and cost efficiency, are forward-looking statements. Such statements are not historical facts, nor are they guarantees of future performance.
• By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including many factors outside the Group’s control. Among otherrisks and uncertainties, the material or principal factors which could cause actual results to differ materially are: the general economic, business, political and social conditions in the key markets in which the Group operates; the ability of the Group to manage regulatory, tax and legal matters, including changes thereto; the reliability of the Group’s technological infrastructure or that of third parties on which the Group relies; interruptions in the Group’s supply chain and disruptions to its production facilities; the reputation of the Group’s global brands; and the recruitment and retention of key management.
• These forward-looking statements speak only as of the date of this announcement. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
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Rakesh KapoorChief executive officer
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is a world where people are healthier and live better
Our vision
Our purposeis to make a difference by giving people innovative
solutions for healthier livesand happier homes
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betterfinancialsHow we drive growthand outperformance
bettersocietyHow we support
our communities anddevelop our people
betterenvironmentHow we reduce our
environmental impact
Delivering value to all stakeholders
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Better Society
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Better Environment
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Target: >£500m NR more sustainable innovations
Zero hazardous & non hazardous waste to landfill by 2016
2015 - Better Financials
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Net Revenue growth
+6%*
Outstanding Net income
growth
+15%**
Strongcash conversion
c.100%
Finaldividend
88.7p
* LFL growth **adjusted to exclude exceptional items at constant exchange rate
Virtuous earnings model delivers
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Grossmargin
Reinvestdrive
NetRevenuegrowth
Fixedcost
Operatingmargin
+140bps(Mix / Project Fuel / pricing)
-50bps(Efficiency programmes)
+210bps
200bpsoutperformance
+£48m* (-20bps)(synergies reinvested)
*at constant exchange rate
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0
1000
2000
3000
4000
5000
6000
7000
Growth by Area
Net revenue trend, 2013-2015 (in £m & 2015 LFL growth %)
+5% +9% +4%
Broad based growth – significant negative fx
ENA DvM Food
Total LFL
+6%
Total actual
0%
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Health & Hygiene led growth
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Health Hygiene Home Portfolio
Net revenue trend, 2013-2015 (in £m & 2015 LFL growth %)
+14% +3% +2% +1%
Project Supercharge
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Project supercharge
ORG / CULTURE/ TALENT
Simpler & moreagile organisation
VIRTUOUSEARNINGS MODEL
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Consumer and Store at the centre of what we do
Consumer Customer
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Size of innovations used to decreasefrom conception to launch
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Size of Innovation
Create Activate
A simpler, more agile organization connected by acommon purpose
ACTIVATESCALECREATE
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CREATE: Bigger innovations
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Average Size of top projects*CREATE
*average size of top 10 projects 2014 2015
27%increase
SCALE: As global as possible
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Innovations launching in more marketsSCALECREATE
2014 2015
18%increase
*average number of countries launched per innovation
Size of innovations to increase fromconception to launch – the Power of 1!
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Size of Innovation
Create Scale Activate
Project supercharge
ORG / CULTURE/ TALENT
Simpler & moreagile organisation
VIRTUOUSEARNINGS MODEL
Super efficient& cost conscious
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Significant savings potential
CATEGORY BENCHMARKS
£100M - £150m
Sample is 25 companies – all fmcg / hc)
15cost categories
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Cost efficiency programme
3 Year Target(2015-17)
£150m
2015 Progress
£100m
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Project Supercharge
Growth & Outperformance
ORG / CULTURE/ TALENT
Simpler & moreagile organisation
VIRTUOUSEARNINGS MODEL
Super efficient& cost conscious
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2015: Continued progress…
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Strategic progress Operational progress
Health / Hygiene led growth
More connected company
Growth in both Developed andEmerging markets
Supercharged operating model
Supercharged earnings model
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Over £25bn shareholder value created since Jan 2012
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30/12/2011 30/06/2012 31/12/2012 30/06/2013 31/12/2013 30/06/2014 31/12/2014 30/06/2015 31/12/2015
RB TSR
FTSE 100 TSR
Significant outperformance of the FTSE 100 which returned 30% over the same period.
£100 Invested in RB on 1 January 2012 was worth £226 on 31 December 2015
H1 innovationsmore detail on a selection…….
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Nurofen® Soft Chews for Children
Nurofen® Soft Chews for ChildrenEffective relief with just the right strength medicine for kids 7-11. In aninnovative gummy format; they’re easy to chew and no need for water.
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Scholl® Velvet Smooth Wet & Dry Rechargeable Foot File
Scholl® Velvet Smooth Wet & DrySoft beautiful feet effortlessly – on wet and dry skin
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3131
Dettol® Gold
Dettol® Gold Delivers 100% superior germ kill vs. other anti-bacterial soaps in the market
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Finish® Supercharged Powerball
Finish® Supercharged PowerballOne supercharged solution for all your dishwashing needs
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Air Wick® Pure
Air Wick® Pure Just fragrance, no wet spray. A water-free aerosol providing the pleasure of Pure fragrance
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2016
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2016: Targets
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Net revenue*
+4-5%
Operating margin**
Moderateexpansion + Supercharge
* LFL at constant rates** Adjusted to exclude the impact of exceptional items. Moderate margin expansion to be supplemented in 2016 by year 2 Project Supercharge efficiencies.
Q1 Results 2016
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Q1 Financials: Summary
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Strong start to the year:
Like-for-like net revenue growth +5%
Total revenue growth +4%impacted by net negative impact of M&A and fx
Health & Hygiene led growth:
Health & Hygiene+6% (LFL)
Driven by continued excellent health performance.
Broad based geographic growth:
ENA +3% (LFL)DvM +10% (LFL)
Stable developed markets and Variable emerging markets
Key messages
Right strategy
Right Culture
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Q&A
Resolutions
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Resolution 1To receive the 2015 report and financial statements
Resolution 2To receive and adopt the Directors’ remuneration policy
Resolution 3To receive and adopt the Directors’ remuneration report
Resolution 4To declare a final dividend
Resolutions 5 - 15Election / re-election of Directors
Resolution 16To re-appoint PwC as auditors
Resolution 17To authorise Directors to determine auditors’ remuneration
Resolution 18To authorise the Company to make political donations
Resolution 19To renew Directors’ authority to allot shares
Resolution 20 To renew Directors’ power to dis-apply pre-emption rights
Resolution 21To renew the Company’s authority to purchase its own shares
Resolution 22To approve the calling of General Meetings on 14 clear days’ notice
Thank you for attending 2016 - RB AGM
5th May 2016
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